Importance of car insurance in Texas:
Car insurance is a must when you are driving around in Texas. Texas is one of the biggest states in the US. Approximately 84% of the population in Texas lives in urban areas. This means the state witnesses a faster pace of life with huge amounts of traffic congestion. Consequently, the chances of accidents rise. Moreover, the average time spent in Texas while driving is higher than most of the states in the US. This also poses risk making car insurance inevitable. Lastly, it is observed that Texans generally are fond of taking long road trips across cities and towns. They are fond of exploring the different suburban areas by traveling by roads so the daily miles per capita driven in Texas are higher than any state in the US. All these reasons contribute to car insurance being compulsory in Texas.
Car insurance policy requirements in Texas:
Car insurance covers the losses incurred during an accident. Accidents carry huge costs, financial, emotional, physical and if the case is pretty bad it could also cost you legally. So for the protection of life, property, and honor of the general public, it is mandated by the Texas state department to have at least a minimum level of car insurance. It is very important to understand the parts of a car insurance policy in Texas, so let us begin by understanding the minimum insurance requirements first.
- Bodily injury: In case of bodily injury arising from an accident in which you are at fault, you must cover up to $30,000 of the expense per person. In case of more than one person being injured, you must cover up to $60,000 per accident.
- Property damage: If you happen to damage the property of the other person during an accident in which you are at fault, the maximum dollar value which will be covered by your insurance is $25,000 per accident.
This is the minimum level of insurance which is usually insufficient to cover the needs or serve the purpose of an insurance policy. Hence people usually go for full coverage car insurance policy in Texas.
Understanding parts of a full coverage car insurance policy in Texas:
Full coverage car insurance policy includes bodily injury and property damage both. However, it is an augmented level of insurance that includes several other parts as well. Here are the different parts of a full coverage car insurance policy in Texas:
Underinsured/uninsured motorist coverage:
Sometimes you get into an accident in which the other person is at fault. However, if he is underinsured or not insured at all to cover your losses, this part of car insurance pays for the damages. In such a situation you will initially file for reimbursement up to the other party’s limit. Then you will claim your remaining damages through underinsured motorist coverage.
Personal injury protection:
Personal injury protection provides coverage for injuries sustained during an accident regardless of who was at fault. Sometimes personal injury protection coincides with the person’s personal health insurance. That is, if a person has sufficient health insurance, it might not be necessary to have personal injury protection.
Collision coverage pays for the damages occurred to your vehicle during an accident. It also works regardless of the fact as to who was at fault. However, collision coverage is very expensive to have. Especially with fancy and luxurious cars that are expensive to repair and maintain, collision coverage can be very expensive.
Comprehensive coverage pays for damages to the car that occurred due to factors other than being hit by a car. For example, windscreen being broken by vandals, car wreckage during a thunderstorm or simply an animal hitting the car are some of the incidents where comprehensive coverage pays for the damages.