An important financial protection to have for yourself and your family is auto insurance
. If you don’t have it your financial security will be at stake, in the event of a wreck.
The purpose of auto insurance is to protect you from monetary loss in the event of an insurable accident. An auto insurance policy is an agreement between you and your insurance company that as long as you pay your premium, they’ll have you covered in the event of an accident. Auto insurance is also helpful if your car is stolen, damaged after an accident, or if you have medical expenses as a result of an accident.
Purchasing auto insurance is a wise financial decision. Furthermore, it’s required by most states that you have some coverage, at least. This protects you and the people you love, as well as other drivers on the road.
Texas Auto Insurance Requirements
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying automobile liability insurance.
Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in an accident. It does not pay to repair or replace your car or for your injuries. Consider buying other types of coverage – such as personal injury protection or medical payments, collision, and comprehensive – to pay for these expenses.
Most drivers buy liability insurance to meet the state’s financial responsibility law. You must buy at least the minimum amount of coverage. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
Breaking the Law
There are penalties for breaking the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Additional convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your car.
When you obtain an auto insurance policy, your insurance company will send you a proof-of-insurance card. You will need this card to prove that you have insurance when you
- are asked for it by a law enforcement officer
- have an accident
- register your car or renew its registration
- obtain or renew your driver’s license
- get your car inspected. (Source)
Give us a call at (800) 374-9227 to get more information or a quote on Houston auto insurance.