What is the Texas Standard Auto Insurance Policy and What Does it Cover?

Having car insurance in Texas is incredibly important. The state is known for its winding highways, sprawling construction and fast drivers. In 2019, there were 12,161 crashes that resulted in 14,908 people obtaining serious injuries.

A standard auto insurance policy in Texas includes:

  • Bodily Injury Liability: Bodily injury liability provides compensation for medical expenses if you cause bodily injury in an accident. It may also cover legal fees if the victim decides to sue.
  • Property Damage Liability: Property damage liability provides compensation if you damage someone else’s property while operating the insured vehicle.
  • Comprehensive Coverage: Comprehensive coverage covers damage to your vehicle due to fire, wind, falling rocks and trees, theft and vandalism.
  • Collision Coverage: Collision coverage covers damage done to your vehicle as a result of a collision with another vehicle or object.
  • Uninsured/Underinsured Motorist: If you crash with an uninsured motorist, uninsured/underinsured motorist coverage helps pay for the damages.
  • Personal Injury Protection: Personal injury protection (PIP) provides compensation for medical expenses for you and your passengers no matter who caused the accident.

Many drivers in Texas with comprehensive car insurance choose a $1,000 deductible. A higher deductible means lower monthly premiums, but this also means that you’ll have to pay more out of pocket if an accident does occur. For example, a deductible of $500 for the same comprehensive insurance means about $200 more annually in premiums. If you can pay for more damages up front, it may be worth it to go with a higher deductible.

Is Texas a Fault State?

Texas is a fault state, which means that the driver who is ruled to be at fault of the accident must file with their insurance company to pay for the damages. This is why liability coverage is important and required in Texas. To drive legally, Texas drivers must have:

  • $30,000 in bodily injury liability per person
  • $60,000 in bodily injury liability per accident
  • $25,000 in property damage

This isn’t the only insurance you need, however. You want enough auto insurance to cover the vehicle, you and your passengers. Liability doesn’t cover the vehicle itself or any injuries someone in your vehicle may sustain. Personal injury protection will provide compensation for you and your passengers’ medical expenses no matter who is declared at fault.

Avoid accidents by driving defensively and ignoring distractions while behind the wheel.

Talk to your insurance agent today at 915-591-0075 about lowering your car insurance rate.

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