Q: I recently bought a car and need to get insurance for it. I have been told you have to buy insurance that covers my car if I hit and injure someone or cause property damage but there are a lot of other types of insurance I can buy. I don’t want to waste money for insurance I don’t need. Where can I learn about the different types of insurance available and what I really need?
A: Buying vehicle insurance can be very confusing. If you drive in Texas, you–must show–that you can pay for accidents you cause. So, Texas law requires you to have auto liability insurance. As of January 1, 2011, Texas law requires minimum liability coverage to be $30,000 per injured person, up to a total of $60,000 for everyone hurt in an accident, and $25,000 for property damage. This basic coverage is called 30/60/25 coverage.
However there is other insurance you should buy such as Personal Injury Protection (PIP) Coverage which is no fault insurance and will pay your medical bills plus 80 percent of lost income.
You should also buy Uninsured/Underinsured Motorist (UM/UIM) Coverage. If you are hit by someone who does not have insurance, Uninsured coverage is there to pay for your damages. If you are hit by someone that has insurance but not enough to cover your damages your Underinsured coverage is there to pay for your damages over what the other person has in insurance.
I have written a free Book entitled A SIMPLE GUIDE TO UNDERSTANDING AUTOMOBILE INSURANCE IN TEXAS that explains all the different types of insurance coverage available and what I recommend everyone carry.
If you have any questions or would like one of my free books entitled A SIMPLE GUIDE TO UNDERSTANDING AUTOMOBILE INSURANCE IN TEXAS or a free ACCIDENT INFORMATION CARD please feel free to e-mail my office.
*Kerry H. Collins is Board Certified in Personal Injury
Trial Law by the Texas Board of Legal Specialization