Texas Car Insurance – Laws and Basic Requirements

The Texas law mandates all motorists to carry the basic auto liability insurance. People who are still paying on their car loans either from the bank or other lenders must carry comprehensive and collision coverage, including the basic liability coverage. Majority of the states measures basic liability based on these three aspects: bodily injury liability per person, bodily injury liability per accident and the property damage per accident. The amount for these three factors in general, appears in units of thousands. In Texas, the minimal auto liability coverage is 30/60/25 which means that $30,000 for bodily injury per person, $60,000 bodily injury per accident and $25,000 for the maximum property damage per accident.

For those who don’t have any knowledge about car insurance policies and terms, Auto liability coverage refers to an individual’s ability to pay the expenses arising from an accident. This means that if you are got into an accident and proved to be your fault, and you only have the basic liability coverage, then your insurance won’t pay for your medical expenses or repair damages to your vehicle. One should understand that carrying only the minimum liability coverage won’t be enough to compensate the total cost of accident. Thus, it is wise to consider other types of insurance coverage if possible.

Apart from learning the laws with regards to financial responsibility, it is likewise crucial to understand Texas Car Insurance consumer bill of rights. Here are some key points you should know.

The state of Texas provides a safety net for individuals who have been denied by their insurance providers. TAIPA or Texas Automobile Insurance Plan Association provides minimum liability security for individuals who are unable to get any coverage. For individuals denied of their car insurance coverage, you have the right to be informed through a written statement why you have been denied including circumstances, particular incidents or factors affecting your insurance status. . You also have the right to compensate auto insurance premiums in an installment basis. Down payment must not exceed the price of 2 months payment.