Texas Auto Insurance Coverage

Automobile insurance in Texas can seem confusing, but the basics are really pretty easy to understand. What follows is a simplified, plain-language description of the most common categories of auto insurance coverage and how they may benefit you.

Bodily Injury Liability
If another person is injured because of your carelessness or the carelessness of someone driving your car, this coverage typically requires your insurance company to pay the claim. The insurance company's obligation is limited, however, to the amount of coverage you purchased. For example, if your liability limits are the Texas minimum of $20,000 per person and $40,000 per accident, your company will pay no more than $20,000 to each injured person and no more than $40,000 total for any one accident.

We recommend buying more than the minimum amount of coverage if you want to protect your personal assets in the event you cause a serious injury or a death. With hospital costs increasing by leaps and bounds, it doesn't take a life-threatening injury to run up more than $20,000 in medical expenses. And if you hit a van with six people in it, the $40,000 maximum per accident may not cover the total medical expenses of all six people.

Property-Damage Liability
This is similar to bodily injury liability except that it covers damage to another person's property rather than physical injuries. Your insurance company's obligation to pay is again limited to the amount of coverage you buy. Minimum coverage in Texas is $15,000. Again, the minimum amount of coverage is unrealistic in these days of $60,000 luxury automobiles. Remember, if you don't have enough insurance coverage to pay for repairing or replacing the other vehicle, you will be personally liable for the additional expenses.

Comprehensive
This category of protection generally requires your insurance company to pay for damage to your car caused by something other than an auto accident (for example, fire, theft, or vandalism). The company's obligation to you will be limited by the amount of any "deductible" you may have purchased. A $100 deductible means that you pay the first $100; the insurance company pays the rest. A higher deductible will lower the cost of this coverage.

Collision
With this coverage, your insurance company pays for damage to your vehicle caused by an auto accident, no matter who was at fault. Deductibles also are common with this coverage, and a higher deductible will lower the cost of the coverage.

Personal Injury Protection (PIP)
Your company will pay the reasonable medical expenses of anyone in your car who is injured in an accident, and will pay for anyone in your household who is injured in anyone else's car. Under this coverage, it does not matter who was at fault in the accident. You don't even have to be inside a vehicle for this coverage to apply. For example, you would be covered if you were struck by a car while you were a pedestrian. A portion of your lost earnings are also covered by this type of insurance.

As with liability insurance, the company's obligation is limited to the amount of coverage you buy. Personal Injury Protection coverage is not required in Texas, but we strongly recommend you buy it. This coverage is very inexpensive, and is available in amounts of $2500, $5000, or $10,000.

Uninsured Motorist (UM)
If an uninsured driver injures you or other occupants of your car, this coverage will pay your claims for physical injuries. It serves as a substitute for the bodily injury liability insurance that the other driver did not have. This coverage also is limited to the amount of insurance you buy. As with personal injury protection coverage, payment is not limited to automobile occupants. We recommend buying as much uninsured motorist coverage as possible. Remember, this is the insurance that will pay you if you are injured by a driver with no insurance.

Underinsured Motorist (UIM)
If a driver injures you or your car's occupants, and his or her liability insurance is insufficient to cover the full value of your claims for physical injuries, this coverage will make up the difference. Again, your company's obligation is limited to the amount of coverage you purchase. Like personal injury protection and uninsured-motorist coverage, it is not limited to automobile occupants. The amount of this coverage will automatically be the same as the amount of uninsured motorist coverage you buy.

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, among other factors. Our law firm will be glad to send you a brochure that further explains automobile insurance and offers tips on lowering the cost of your insurance. Please e-mail, call, or write us now for this free brochure.