Automobile Insurance Policy Coverage Texas TX
Reader’s Question:
What are the requirements for a full coverage automobile insurance policy in Houston, Texas?
April
Houston, TX
According to Texas law, every driver (this includes those in Houston, Texas) must have an auto insurance (if vehicle is owned), or a comprehensive and collision coverage (if the vehicle is not yet fully paid). Auto insurances are used to pay for damages caused by accidents such as damage to a person, to a vehicle, or to properties.
In Texas, a driver has to have a guarantee that he/she can pay for the damages in accidents where he/she was found at fault. Under the Texas Transportation Code, a driver may choose any one of the following financial responsibilities:
1. Auto insurance policy
2. Security bond in compliance with Section 601.121
3. Security bond in compliance with Section 601.122
4. Security bond in compliance with Section 601.123
5. Personal insurance in compliance with Section 601.124
In most cases, drivers choose to obtain an auto insurance policy to cover their state-mandated financial responsibilities. In April 1, 2008, the state of Texas ordered a 25/50/25 minimum coverage (for physical injury, vehicular damage, and property damage, respectively) for every auto insurance. Prior to this law, the minimum coverage required was 20/40/15. Since this new law is only pertaining to the minimum coverage, it does not guarantee that it could cover all the damages, especially if the driver is found to be at fault. Therefore, the driver may have to consider getting an insurance policy that has a higher premium to ensure that damages beyond the minimum would also be covered.
Tags: auto insurance, car insurance
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