Drivers are generally required by law to purchase and maintain an auto insurance policy in Texas and other US states. There are various types of car insurance coverage that may be included in this type of policy, and coverage may benefit the insured as well as other motorists, pedestrians or other individuals impacted by the driver’s actions on the road. With a closer look at what this coverage is, you may understand your options and requirements more fully.
Requirements For Auto Insurance Coverage
In most states, laws are in place that require drivers to purchase a minimum amount of liability coverage with their auto insurance policy. This is insurance that will provide benefits to others impacted by the driver’s actions. For example, in a car accident, the auto liability insurance may pay for vehicle repairs, medical expenses and other related expenses for the other motorists. For drivers who have a car loan in place on their vehicle, their lender may also require them to hold collision insurance or comprehensive coverage. This coverage may pay to repair or replace the driver’s own vehicle in the event of an accident. While collision coverage generally covers specific events, such as a car accident, comprehensive coverage may cover losses related to theft, vandalism, natural weather events and more.
Other Car Insurance Options Available
In addition to these car insurance coverage options, there are optional coverages that drivers may select. These may vary by insurance company, but some of them include personal property insurance for contents damaged or stolen from inside the vehicle, towing reimbursement, rental car reimbursement and more. Drivers should consider their need for the different options available in a worst-case scenario, such as after a car accident. In some cases, drivers may qualify for discounts on their policy. Each insurance company may vary slightly in this area. However, some companies offer safe driving discounts, multiple drivers or multiple policies discounts and other similar savings options.
As a driver, it is important to understand the risks that you face on the road and to understand their financial impact to you. Even a small fender bender can cost you or the other driver thousands of dollars in repairs, and getting into an accident without proper liability and auto insurance coverage can become a huge financial burden. You should also understand the requirements in place for coverage in your state. Through these steps, you can make a better decision about your insurance coverage.
If you live in Sugar Land, Houston, or the surrounding areas, get in touch with J. Thomas & Associates today for a free car insurance quote. We will assess your coverage needs and make sure that you have all your bases covered when you hit the road.