Car Insurance in Texas & More
What is car insurance?
Driving a vehicle carries a natural danger of unexpected incidents and accidents, and virtually all Texas drivers will have something happen if they own a vehicle long enough. Car insurance isn’t a substitute for safe driving practices. Should something happen on the road, though, it can provide valuable financial protection.
Car insurance may safeguard against accidents and a range of other unforeseen events. The coverage can extend to the vehicle, the driver/owner, and anyone who is riding in the car.
Who in Texas is required to carry auto insurance?
Texas generally requires all drivers to carry at least 30/60/25 coverage. However, 100/300/100 limits are the recommended preferred limits.
The state’s 30/60/25 coverage terminology stems from the limits that are required. Drivers generally need to maintain injury liability coverage in the amounts of $30,000/person, and $60,000/accident. Property damage liability of $25,000/accident is also needed.
Drivers who have loans or leases on their vehicle may additionally be required to carry collision coverage, comprehensive coverage and gap coverage. Lenders often mandate these coverages so that the vehicle that they’ve financed is protected against damage.
In many cases, drivers choose to purchase more protection than the state and/or their lender require. The state’s minimums can leave drivers susceptible to significant financial risk.
What are the coverages that auto insurance policies have?
Auto insurance policies can offer the aforementioned protections, and a number of other protections. The exact coverage options vary by insurer and policy, but often include:
- Personal Injury Coverage: Might apply to individuals in the insured vehicle who sustain injuries in an accident
- Medical Payments Coverage: Might apply to medical expenses incurred by individuals in the insured vehicle in the event of an accident
- Bodily Injury Coverage: Might apply to injuries to other drivers, passengers, or pedestrians involved in an accident with the insured vehicle
- Comprehensive Coverage: Might apply to non-collision related damages, such as theft, fire, or natural disasters, that the insured vehicle sustains
- Collision Coverage: Might apply to collision damages, from hitting another vehicle, that the insured vehicle sustains
- Property Damage Liability Coverage: Might apply to damages that other vehicles or property sustain during an accident
Underinsured/Uninsured Motorist Coverage: Might apply to accidents caused by drivers who are either underinsured or have no insurance coverage
Do all drivers need gap coverage?
Gap coverage usually provides protection for the difference that’s owed on a vehicle. If a vehicle depreciates faster than the financing is paid (which is typical), then gap coverage might pay the difference. Without this coverage, drivers who finance could be personally responsible for an outstanding balance if their car is totaled.
Most drivers who finance or lease their vehicle are required to carry gap coverage. Drivers who own their vehicle outright normally don’t need this protection.
Does Texas allow insurance companies to consider credit scores?
Texas does allow insurance companies to consider a driver’s credit score when setting their premiums. Drivers with lower scores are presumed to be more risky than those with higher scores, and thus those with lower scores are often assessed slightly higher premiums. You may be eligible for a premium reduction if your score has improved since a policy was last issued.
An insurance agent who specializes in auto insurance will be familiar with how credit scores and other criteria impact premiums. If they’re an independent insurance agent, they’ll be able to help you find out which insurer will give the best rates for your particular situation.
How can drivers get car insurance?
If you need help insuring a Texas-registered vehicle, contact the independent insurance agents at JBH insurance. Our agents have worked with many drivers. We have the expertise necessary to help you find a solid car insurance policy that’ll keep you protected well when on the road.
