Auto Insurance - Texas
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Auto Insurance in Texas
Overview
In Texas, all drivers are required by law to carry at least liability insurance. However, there are various other types of auto insurance available to provide greater coverage and peace of mind. Here are the major types of coverage offered by Texas insurance companies.
Medical Payments Coverage
This insurance covers medical and funeral expenses due to accidents, protecting you, your family, and passengers, regardless of fault. It even applies to incidents involving pedestrians or bicyclists. Although Texas law mandates insurance, not all drivers comply, so adding this coverage is wise to ensure protection.
Personal Injury Protection (PIP) Coverage
Similar to medical payments coverage, PIP also includes 80% of lost income and caregiver costs for an injured person. Texas law requires insurance companies to offer $2,500 in PIP, which you must reject in writing if you choose not to include it in your policy.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
This coverage handles expenses from accidents caused by uninsured or underinsured drivers and covers damages from hit-and-run incidents when reported to the police. UM/UIM is divided into bodily injury and property damage coverage. It’s a smart addition for protection against drivers who don’t adhere to insurance laws. Texas requires written rejection if you opt out of this coverage.
Collision Coverage
This coverage covers the cost of repairing or replacing your car after an accident, regardless of fault. Payment is based on your car's actual cash value minus your deductible. The actual cash value is the market value of your vehicle before damage.
Comprehensive Coverage
Comprehensive coverage addresses the cost of repairing or replacing your car if it’s damaged or stolen due to non-collision events like fire, vandalism, or weather. It also covers temporary transportation costs if your car is stolen. Report theft to the police to be eligible for a claim, which is limited to the car's actual cash value minus the deductible.
Towing and Labor Coverage
This coverage pays for towing and labor charges, such as tire changes, when your car cannot be driven.
Rental Reimbursement Coverage
If your car is stolen or under repair due to covered damage, this coverage provides a set daily amount for a rental car.
Overall, auto insurance in Texas can offer much more comprehensive protection than a basic liability policy, ensuring greater security and peace of mind.
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