When it comes to insurance, the process can seem complicated. What are you paying for and how much does it cover? What will happen if your car is totaled? Will insurance pay for your medical bills? How much insurance should I carry in Texas?
These are all valid questions, but the answers are not cut and dry. Each insurance company offers different policies, and certain things may or may not be covered. It’s important that you find out this information now instead of after a crash.
Each state has minimum insurance policies. In Texas, the basic liability coverage you need is called 30/60/25. This means that you must have $30,000 in coverage for each injured person, up to $60,000 per accident. You also need $25,000 in coverage for property damage.
Note that this is the minimum amount of coverage you need to legally drive your vehicle in Texas. Keep in mind that this does not guarantee that your damages will be covered in the event of a crash. Liability coverage does not pay for everything. You may need to add on other types of insurance to ensure you have the coverage you need.
Other Types of Insurance
Besides liability insurance, there are many other types of insurance you can get. Some may be required, while others may only be helpful in certain situations.
Collision and comprehensive coverages are required for those who are financing their vehicles. Collisions coverage will pay for repairs to your vehicle if it is involved in a crash, while comprehensive insurance pays for other types of damage, such as that caused by weather, fire or vandalism.
Medical payments and personal injury protection are two other types of coverage. These are recommended only if you don’t have health insurance, so you may not need these.
Underinsured/uninsured motorist coverage protects you if you are hit by a driver who does not have enough insurance. It is also helpful if you are involved in an accident caused by a hit and run driver.
Should You Buy As Much Coverage As You Can Afford?
It may seem like a good idea to have as much coverage as possible in case an accident were to occur. However, this has a couple disadvantages. You’ll be paying way too much for your policy, for an accident that may not ever happen. So you could pay thousands of dollars per year—money that could be better spent on other bills.
In addition, having too much coverage makes you a target for unnecessary lawsuits. Drivers with excessive coverage are financially more attractive than those with minimum coverage, and people will try to take advantage of this situation. It’s better to find the right balance of coverage than to invite unwanted attention.
Contact a Car Wreck Lawyer in Austin
If you’re involved in an accident, don’t get stuck with the medical bills and costs for vehicle damage. Make sure you have the right amount of coverage to avoid financial loss.
Not sure how much auto insurance you need? The skilled Austin, Texas car crash attorneys at DC Law can assess your financial situation. Contact us today at (512) 220-1800 to schedule your free consultation.