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Automobile Insurance in
Texas
All Texas motorists
should carry automobile insurance. Since 1981, it
has been the law in Texas that all motorists must
carry automobile liability insurance. Effective
September 1, 1991, the enforcement provisions of the
mandatory insurance law were strengthened.
Texas motorists must now show proof of liability
insurance to receive or renew a driver's license,
receive a safety inspection sticker or register a
vehicle. The fine for not having insurance has increased
from $75 under the old law to between $175 and $350
under the new law. A second offense could mean
impoundment of your vehicle and suspension of your
driver's license.
Some people may be confused about the various types of
automobile insurance available in Texas, the purpose of
each type of insurance, and the costs related to that
insurance coverage. The basic types of automobile
insurance are:
Liability
coverage
This coverage protects you if you drive negligently and
cause injury to another person or damage to another
vehicle. Texas law requires every automobile owner to
carry liability insurance in the minimum amount of
$20,000 per person injured. It is usually wise, and
normally not much more expensive, to carry more
insurance than the minimum limit. If you do not have
enough insurance to pay for the damage or injuries you
cause, you could be personally responsible for the
additional cost of the damage or injuries.
Personal Injury
Protection coverage
This is a form of "no-fault" insurance coverage that
pays medical bills and lost earnings for you and others
in your car, no matter who was at fault in the
collision. PIP is available in different amounts, and
$10,000 worth of coverage is generally not much more
expensive than $2500 in coverage. PIP coverage pays
benefits if any member of your family is injured in
any automobile, and if any person is injured
in your automobile. It is a very worthwhile addition to
your basic automobile insurance policy.
Uninsured and
Underinsured Motorist coverage
This coverage will pay for property damage or injuries
sustained by you, your family members or occupants of
your automobile and caused by drivers who have no
liability insurance, or insufficient liability
insurance, of their own. In other words, this coverage
replaces the other driver's liability insurance. This
coverage is optional, but highly recommended. Without
it, you will have no protection if you are involved in a
collision with an uninsured driver.
Collision
coverage
This pays for property damage to your car if it is
involved in a collision, no matter who was at fault in
the collision. This insurance will pay for your property
damage even if the collision was your own fault. There
is a "deductible" amount that you must pay, and your
insurance company will pay the remainder.
Comprehensive
coverage
This coverage pays for loss or damage to your automobile
or its contents in situations not involving collisions.
For instance, this insurance applies in cases of hail
damage, fire, theft or flood. The question of fault does
not apply to comprehensive coverage, but there is a
"deductible" amount you must pay.
Automobile insurance rates vary widely depending on the
insurance company or agent you choose, the types and
amounts of coverage you want, and the kind of car you
drive. Our law firm has prepared a brochure that further
explains automobile insurance and offers tips on
lowering the cost of your insurance. It is available on
our Web site or you can call us for a printed version of
this free
brochure.
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