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If you have driven in Texas a while now, then 30/60/25 might sound very familiar. It is the minimum amount of coverage every Texas driver must carry. It stands for $30,000 per person for bodily injury liability, $60,000 per accident for bodily injury liability, and $25,000 for property damage liability.

Liability covers you and what damage and harm you might cause to other people while driving. If you bang up a few cars, that $25,000 property liability coverage will leave you with a big chunk of the bill.

In addition, you probably will end up ensnared in a lawsuit where the other parties seek damages. Consider buying sufficient liability insurance limits to cover the same value of all of your assets.

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How Texas Auto Insurance Works

States treat insurance in different ways, based upon who is responsible for an accident. In Texas, think of it all just like the liability coverage. In Texas, you are responsible for every aspect of an accident.

This means you are responsible to pay for your own injuries and property damage too.

In theory, everyone should be responsible and be able to afford more than the minimum liability damage and bodily injury liability. But this expectation is unrealistic, and that is why you have to assume financial responsibility for every aspect of an accident.

  1. Collision coverage is damage your car incurs from impact in an accident.
  2. Comprehensive covers everything else, including burglary and theft, and even storms.
  3. Uninsured and underinsured injury and property damages cover you against motorists who have insufficient insurance coverage.

Additional Coverage

Aside from state-mandated coverage amounts, there are additional types of auto insurance coverage you have the opportunity to purchase.

  • Medical coverage

Medical coverage is another option available when shopping for vehicle insurance. Medical pays some money toward medical expenses. In addition, it also often includes funeral expenses for death from a collision, whether in your car or as a pedestrian.

  • Towing

Towing coverage is another item many consumers buy. Towing can be expensive because it is charged by the mile. If you drive long expanses, it may pay to buy towing coverage.

  • Rental reimbursement

Rental reimbursement provides a daily dollar amount for rental car coverage. Your policy will specify when this line of coverage is in effect, such as if your car is disabled from a collision.

Read your policy agreement thoroughly and always ask your agent or insurance company questions before you sign up for your next policy. In particular, if you are changing companies, you may not be used to what the new carrier includes or excludes in policies.

Saving Money on Car Insurance

Take the time out to shop for car insurance every time your policy is set to renew. Otherwise, you may be missing out on great opportunities to save money.

Other insurance companies will give you extra savings to lure you away from your present carrier. For the insurance companies, it is to their benefit to have a great pool of people paying into their insurance company. That is how they make money.

  1. Drivers often save a good amount of money for years after taking safe driving classes.
  2. Buy multiple lines of coverage through the same insurance carrier.
  3. Make sure you are given credit for all the safety features your car has.
  4. You may want to drop collision and comprehensive coverage if your car is worth less than it costs to insure.

Insuring Teen Drivers

Many parents have lots of questions as their children become old enough to drive.

They are of course reminiscent of where the years went. Then they panic about letting go and allowing their teens this next big level of freedom into adulthood. Paying for the teen driver's insurance provides sticker shock that is next in line after college costs.

When buying insurance, the best way to go is by shopping around for coverage. Try finding policies for your teen on their own individual policy.

Compare that against the costs of adding them to your insurance. Many parents stall and hold off on allowing their kids to get their driver's license as a way to save money.

Just make sure that if you do that that they will not have to drive, say to have a job. Weigh the pros and cons, and include such savings as good student discounts in the insurance policy quotes.

A good portion of parents keep their college-aged kid on the insurance, just in case their kids drive while away at school.

Evaluating Insurance Carriers

When you are buying coverage, take into consideration from whom you buy your insurance. Are they a creditworthy company? That means, make sure the insurance carrier has the money to pay insurance claims.

Check with companies such as A.M. Best, Moodys, and Weiss for ratings.

Buying insurance is a matter of learning all you can about what you need. Determine what limits of coverage you want and then shop around for insurance. Make the most of all possible savings as well.

If you enter your zip code below, you will see how much you can save on auto insurance today!

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