Texas law requires all drivers to have adequate car insurance. Under Texas law, all drivers must have auto liability insurance. The most recommended and common way to meet legal liability in Texas is to purchase an auto insurance policy. While a policy is made up of multiple coverages, Texas auto insurance laws require that motorist coverage include at least protection against bodily injury and property damage.
Through the policy, your insurance provider in Texas assumes the financial burden of paying for damages you cause up to the limits of coverage per person injured or per accident, when the policyholder is at fault for the accident. Texas law requires people who drive in Texas to pay for accidents they cause. Most drivers do this by purchasing liability insurance. Liability insurance pays for the repair or replacement of the other driver's car and pays for other people's medical bills when you're at fault for an accident.
There are many other insurance coverage options in Texas that provide the driver with additional coverage and additional services in the event of an accident. There are other alternatives where Texans can obtain a certificate of insurance to comply with the statutory requirement, such as depositing cash with the state or creating a security bond. If, on the other hand, you're looking for a policy that balances quality with affordability, MoneyGeek also ranked the top auto insurance companies in Texas. Collision coverage can cover repairs (or replacement) of your damaged vehicle after a car accident.
Since insurance in Texas generally follows the car, you will still be covered regardless of who is behind the wheel in an accident. Although it seems illogical, having car insurance in Texas, even if you don't drive, can be beneficial in some situations. As a liability state, Texas auto insurance laws require at-fault drivers to cover expenses incurred in an accident. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as approval of coverage, premiums, commissions and charges) and policy obligations are the sole responsibility of the insurer.
The first page of your policy, called the declarations or deductibles page, shows the exact name of your insurance company, your policy number, and the amount of each of your coverages and deductibles. In addition, if you are in an uninsured accident that causes damage or injury, you could be liable to pay for damages to the other person's vehicle, medical bills, lost wages, car rental fees, and face a court case that could end up costing thousands of dollars. While car insurance laws in Texas require your policy to meet the state's minimum coverage requirements, this may not be enough for a leased vehicle. In addition to an auto liability insurance policy, there are four less common alternatives for demonstrating your liability and ability to pay for accidents you cause.
The risk of having an accident with a driver who does not have insurance or who does not have enough insurance to cover the damage caused by the accident is a very real possibility. After an accident occurs, an injured driver, passenger, or pedestrian may decide to first file a claim with their own auto insurance company, in what is known as a first-party claim. While insurance for uninsured motorists is not part of the minimum car insurance requirements in Texas, it is a good idea to buy it. .
