Your monthly cheap auto insurance Texas payment may easily be one of the larger expenses that you are responsible for each month. Many are looking for a way to make their insurance premium more affordable, but it is also important to have auto insurance coverage that meets all of your needs. It is common for drivers to purchase an auto insurance policy because they are legally required to do so in Texas. However, there are financial benefits associated with having the right coverage in place as well. With this in mind, you may be able to save money without sacrificing on the benefits that coverage provides when you understand more about the different types of auto insurance available.
Liability Auto Insurance
According to state law, drivers in Texas are legally required to purchase and maintain a policy that has a minimum amount of liability coverage in place. You are required to provide proof of coverage upon request, such as when you are pulled over for a moving violation or when you are in an accident. In Texas, the law states that drivers are financially responsible for any damages they cause to others while driving. Liability coverage provides the financial means to comply with this law in most cases. The minimum coverage requirement in Texas is to have at least $30,000 for personal injury per person and $60,000 per accident. The requirement also includes $25,000 for property damage per incident. If damages exceed these limits, the driver will need to pay the difference out of pocket. This coverage pays for other party’s expenses, but additional auto insurance coverage is needed to cover the driver’s expenses.
This is another type of coverage available for Texas drivers. It will pay to repair or replace the driver’s vehicle in the event of an accident. It generally will not include damage or loss related to theft, natural weather events and more. Personal injury and property damage coverage for the driver may be added to this type of policy as needed. Typically, this type of policy may have a coverage limit that relates to the actual loss incurred, which generally is the value of the vehicle at the time of the collision. This coverage may be required by an auto lender if the driver has a car loan on the vehicle.
Many drivers choose to purchase comprehensive coverage because it is the most inclusive type of coverage available. It provides the same benefits that collision offers, but it generally will include losses related a wider range of events, including theft and natural weather events. As with collision auto insurance, this type of insurance may have a maximum limit on coverage that is equivalent to the value of the vehicle at the time of the event.
When you purchase auto insurance in Texas, you typically can purchase other types of coverage upon request. These include roadside assistance, towing coverage, rental car reimbursement, personal damage and personal injury insurance. The amount of these benefits often can be adjusted to fit your needs. These will have a direct impact on the cost of your coverage, so you may consider if you have a true need for them before you make a purchase. For example, if you have roadside assistance through the dealership where you purchased your car at, it may be redundant to add it to your policy.
Drivers who want to save money on their auto insurance policy may consider determining the minimum amount of auto insurance coverage they are required to purchase by law and by their auto lender first. Then, think about the benefits that optional auto insurance can provide in order to make a great decision about your coverage.