Auto Insurance
Types of Auto Coverage
- Liability coverage pays to repair the other driver’s car if you caused the accident. It also pays the other driver’s and his or her passenger’s medical bills and some other expenses. Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.
- Collision coverage pays to repair or replace your car after an accident.
- Comprehensive (other than collision) coverage pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision.
- Medical payments coverage pays your and your passengers’ medical bills. It also pays if you’re hurt while riding in someone else’s car or while walking or biking.
- Personal injury protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers’ medical bills. But it also pays for things like lost wages and other non-medical costs. All auto policies in Texas include PIP coverage. If you don’t want it, you must tell the company in writing.
- Uninsured/underinsured motorist coverage pays if you’re hit by someone who didn’t have insurance or didn’t have enough to pay your medical and car repair bills. It also pays if you’re in a hit-and-run accident. Insurance companies must offer you this coverage. If you don’t want it, you must tell the company in writing.
- Towing and labor coverage pays to tow your car if it can’t be driven. It also pays for labor to change a flat tire or jump-start your battery.
- Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services.
Think about buying more liability coverage
The minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver’s car is totaled. If you don’t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket. The other driver could sue you.
What does my auto policy cover?
| Most policies cover: | Most policies don’t cover: |
|---|---|
| Car repair, medical, and funeral bills and lost wages and payment for pain and suffering to the other driver and passengers if you cause an accident | Accidents that happen while you’re driving for a ride- hailing service like Uber or Lyft |
| Damage to trees, buildings, fences, street signs, and other property | Accidents that happen while you’re delivering food or other items for a fee |
| Accidents that happen while you or someone covered by your policy is driving a rental car | Accidents that happen while you’re driving a car that doesn’t belong to you but you could use regularly, like a company-owned car |
| Accidents that happen while you’re driving in other states and Canada | Accidents that happen while you’re driving in Mexico |
| Your attorneys’ fees if you’re sued because of an accident | Accidents that happen while you’re driving your car for business |
| Damage to your car because of an accident (if you have collision coverage) | Accidents that happen while you’re racing |
| Damage to your car because of fire, hail, vandalism, theft, flood, flying gravel, and falling objects (if you have comprehensive coverage) | Damages that you caused intentionally |
| Damage to your car if you hit an animal (if you have comprehensive coverage) | Radios, CD players, navigation systems, and other equipment not permanently installed in your car |