Understanding Your Car Insurance Policy: What Is Covered?
Car insurance is something that many drivers don’t think about unless they have to. However, it’s something that is very important in times of unexpected disasters, such as car accidents. Without this type of financial safety net, many of us would be stuck with out-of-pocket expenses that we simply cannot afford.
There are many aspects to an insurance policy, and it’s important to understand how yours works. Below, we discuss auto insurance requirements in Texas and what types of coverage you may want to consider adding to your policy.
Texas Auto Insurance Requirements
Each state has its own laws regarding minimum auto insurance requirements. According to the Texas Department of Insurance, drivers in this state are required to have:
30/60/25 Liability Coverage
This stands for $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 for coverage of property damage. Liability coverage is only used to compensate other people in accidents that you may be responsible for causing.
When you purchase a car insurance policy, your insurance company will send you a proof of insurance card. You should keep this with you at all times, as you are required to show this card when after an accident, when you get your car inspected, or when you renew your registration or license.
Types of Coverage
Texas drivers have the option of adding many different types of coverage to their car insurance policy.
As we discussed above, liability coverage will pay for others’ damages in the event you cause an accident. You may want to consider adding more than just the 30/60/25 minimum. If you cause a serious auto accident or multi-vehicle crash, this may not be enough coverage for everyone’s total damages. In this case, the other driver may sue you and go after your assets.
This pays to repair your own vehicle after an accident.
This pays if your car is either stolen or damaged by fire, flood, vandalism, or something else other than a collision.
Medical Payments Coverage
This covers your and your passengers’ medical bills, as well as situations in which you are injured walking, biking, or riding in someone else’s car.
Personal Injury Protection (PIP) Coverage
This is similar to medical payments coverage in that it will pay your and your passenger’s medical bills, However, PIP protection will also cover lost wages and certain other nonmedical costs.
Uninsured/Underinsured Motorist Coverage
This pays for your damages if you’re hit by someone who doesn’t have insurance or doesn’t have enough coverage to pay for your entire medical bills and car repairs. It will also cover you in situations of hit-and-run accidents.
Towing and Labor Coverage
This pays to have your car towed if it can’t be driven, as well as labor for getting a tire changed or jump-starting your battery.
Rental Reimbursement Coverage
This pays for you to rent a car if yours is stolen or being repaired after an accident.
It’s true that the more coverage you add, the higher your premiums will be. However, accidents can happen when we least expect them to. It’s important to add the necessary coverage you need to ensure that you are financially covered in the event of a collision.
What’s Covered and What’s Not
Coverage depends on what types of coverage you chose in your policy. With the right coverage, many insurance policies in Texas will cover:
Car repair, medical, lost wages, and funeral expenses, as well as payment for pain and suffering to the other driver and passengers if you cause an accident
Accidents that happen when you or someone listed in your policy is driving a rental car
Accidents that happen when you’re driving through other states and in Canada
Your attorney fees if you are sued because of the accident
Damage to your vehicle after an accident
Damage to your vehicle because of theft, vandalism, fire, flood, or falling gravel
Most policies won’t cover:
Accidents when you’re driving for rideshares like Uber or Lyft
Accidents where you are delivering food for a fee (such as Postmates or Uber Eats)
Accidents that happen while you’re driving in Mexico
Accidents that happen when you’re driving for business
Accidents that happen while you’re racing
Damages you intentionally cause
It’s important to read your policy or have your agent break it down for you so that you understand it clearly.
Injured in an Accident?
If you’re injured in an accident, turn to the car accident attorneys at the Law Offices of Vic Feazell to stand in your corner. Insurance companies are notorious for going to any lengths necessary to deny paying injury victims the compensation they truly need. Our attorneys are the aggressive legal fighters you need to ensure your rights to fair compensation are thoroughly protected.
While the insurance company will be looking out for its own best interests, we will be looking out for yours.
Contact the Law Offices of Vic Feazell at (512) 271-5278 to schedule your free case review. During COVID-19, we are also offering virtual consultations and remote services so you don’t have to leave your home.