When people are buying Auto Insurance in South Austin TX, they often have questions about what coverage is required and what is optional. Let’s face it, the people who write insurance policies could never author a best-selling novel. It’s easy to be confused as to exactly what they mean.
Texas is a “Fault” State
Texas is a “fault” state, which means that drivers are required to pay for the accidents that they cause. After an accident, people may decide to file a claim with their own insurance company, with the other driver’s insurance company or they may file a lawsuit to prove fault and seek compensation for their injuries, pain and suffering and other losses.
The Minimum Auto Insurance Requirements in Texas
Texas drivers are required to carry a minimum amount of auto insurance. Of course, many drivers feel that this amount of protection would not be enough protection and choose to increase the amount of coverage.
In order to satisfy the state’s minimum financial responsibility requirement, a driver must have auto insurance that covers:
1. $30,000 worth of coverage for each person’s bodily injuries;
2. $60,000 to cover the bodily injuries from an accident if two or more people sustain injuries;
3. $25,000 for property damage for each accident.
This basic coverage is referred to as “30/60/25.” It pays for medical bills, property damage (usually related to the vehicle) and other costs when you are declared to be the one who caused the accident. Any serious injury will rack up bills much higher than those limits, which is why people purchase more insurance than the minimum. When the costs are higher than the amount of coverage, the individual is responsible for paying for everything above that amount. (If the medical bills amounted to $100,000 and the insurance covered $30,000, you would be responsible for $70,000.)
Uninsured/Underinsured Coverage
In theory, every driver on the road carries insurance. In practice, everyone knows that’s not true. Texas does not require anyone to purchase uninsured/underinsured coverage, but it provides valuable additional protection in the event of an accident with an uninsured driver.
When you need to purchase Auto Insurance in South Austin TX, Patrick Court at State Farm would love the opportunity to EARN your business. In addition to auto insurance, State Farm also offers home, property, life and health insurance, banking products, mutual funds and annuities. Call Patrick today for a free quote and a discount double check.
