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.