Auto insurance policies cover damages to vehicles, property, and people caused by accidents, theft, or acts of nature. Not all insurance policies cover all types of scenarios and damages. The coverage will depend on what options the policyholder chooses at the time of the policy purchase. In addition, the amounts covered for each incident are determined by the selections made under the policy.
Texas law requires that all vehicle owners purchase an automobile insurance policy. In the state of Texas, anyone who causes an accident is financially responsible for damages to other vehicles, damages to personal property, or bodily injury to other individuals. This differs from "no fault" insurance states. In those cases, regardless of who is at fault in an accident, each individual driver's policy covers the damages incurred to their own vehicle, regardless of who is at fault.
The minimum policy requirements in Texas are:
- Minimum liability limit of $30,000 per each injured person
- Total liability coverage of at least $60,000 per accident
- Total property liability coverage of at least $25,000 per accident
A vehicle owner can choose higher coverage limits though this will increase their premiums. Some types of coverage:
- Liability - protects your finances from law suit if you are at fault.
- Collision - recommended if you still owe money on your car. This coverage pays for damage to your vehicle.
- Comprehensive - covers your vehicle for things other than an accident such as; fire, flood, theft, acts of nature.
- Medical - referred to as personal injury protection or PIP and pays medical costs associated with injuries sustained in an accident.
- Uninsured/Underinsured - covers damage that is caused by an uninsured driver or hit and run accident.
Before purchasing automobile coverage, contact Stone Agency. We can help you choose the policy and coverage that best fit your needs and budget.