Having Texas auto insurance is a must as a driver. Not only will it help you pay for small repairs or major accidents, it is also mandated by law that you carry it in some form or fashion. There is a huge variety of options available when it comes to your auto insurance, there are in fact a great number of different types of car insurance for you to choose from, so it can be tough to determine what type of auto insurance is the best choice for you, your car and your finances.
1. Uninsured Motorist Protection
Just because the law requires everyone to have insurance doesn't actually mean that everyone has auto insurance. Even if a driver has a liability insurance policy, Texas has a relatively low minimum that may not cover all of the expenses that can go along with an accident. One of the worst things that can happen is that you get stuck with the bills in an accident that wasn't even your fault.
Be careful to do your research though, a policy that covers damage by an uninsured motorist isn't as clear-cut as other policies. In theory, even if a driver doesn't have enough insurance to cover damages during an accident, he will still have an obligation to cover the costs out of pocket.
2. Personal-Injury Protection and Medical Insurance
Medical costs associated with treating injuries after a car accident can be exorbitant. In order to cover those costs, medical and personal-injury protection is available on your Texas auto insurance policy. No matter who is at fault, this protection will cover your medical bills along with those of your passengers when there is an accident.
This type of extra insurance may not be necessary for you if you have a good health insurance plan that will cover the costs of your emergency medical expenses. What this type of insurance coverage is most useful for is protecting your passengers and protecting your wallet from paying for your passenger's injuries in the event of a wreck.
3. No-Fault Insurance
So far, no-fault insurance is available in twelve states. This option covers injuries and property damage, no matter who is ultimately responsible for a given accident. The decision to choose no-fault insurance really depends on what other insurance options are available to you and at what price. Some no-fault policies can be expensive, making it more cost-effective to choose other options, especially if your car is inexpensive to replace.
4. Gap Insurance
When you are leasing a car or if you are still making car payments on a new car, gap insurance is a good choice. This type of insurance exists for drivers who still owe money on their cars and will be accountable to pay off the vehicle if it is totaled or damaged at all in an accident. It's usually a good choice to opt for this type of insurance if you owe more on your car than you would be able to pay off on short notice.
Gap insurance is also valuable if you owe more on the car than you would get back if you sold it today. Because most insurance policies will cover only the value of the car as it is on the day of the accident, not the cost to replace it, so without gap insurance you could find yourself under water or upside-down paying for a car you don't even have anymore. Many lenders may require you to have gap insurance or something similar until you pay off the vehicle
1. Uninsured Motorist Protection
Just because the law requires everyone to have insurance doesn't actually mean that everyone has auto insurance. Even if a driver has a liability insurance policy, Texas has a relatively low minimum that may not cover all of the expenses that can go along with an accident. One of the worst things that can happen is that you get stuck with the bills in an accident that wasn't even your fault.
Be careful to do your research though, a policy that covers damage by an uninsured motorist isn't as clear-cut as other policies. In theory, even if a driver doesn't have enough insurance to cover damages during an accident, he will still have an obligation to cover the costs out of pocket.
2. Personal-Injury Protection and Medical Insurance
Medical costs associated with treating injuries after a car accident can be exorbitant. In order to cover those costs, medical and personal-injury protection is available on your Texas auto insurance policy. No matter who is at fault, this protection will cover your medical bills along with those of your passengers when there is an accident.
This type of extra insurance may not be necessary for you if you have a good health insurance plan that will cover the costs of your emergency medical expenses. What this type of insurance coverage is most useful for is protecting your passengers and protecting your wallet from paying for your passenger's injuries in the event of a wreck.
3. No-Fault Insurance
So far, no-fault insurance is available in twelve states. This option covers injuries and property damage, no matter who is ultimately responsible for a given accident. The decision to choose no-fault insurance really depends on what other insurance options are available to you and at what price. Some no-fault policies can be expensive, making it more cost-effective to choose other options, especially if your car is inexpensive to replace.
4. Gap Insurance
When you are leasing a car or if you are still making car payments on a new car, gap insurance is a good choice. This type of insurance exists for drivers who still owe money on their cars and will be accountable to pay off the vehicle if it is totaled or damaged at all in an accident. It's usually a good choice to opt for this type of insurance if you owe more on your car than you would be able to pay off on short notice.
Gap insurance is also valuable if you owe more on the car than you would get back if you sold it today. Because most insurance policies will cover only the value of the car as it is on the day of the accident, not the cost to replace it, so without gap insurance you could find yourself under water or upside-down paying for a car you don't even have anymore. Many lenders may require you to have gap insurance or something similar until you pay off the vehicle
About the Author:
For more information about these and other insurance options visit Dillo Insurance online. Dillo Insurance is a Texas auto insurance agency specializing in no credit check auto insurance for the Texas market despite tickets, accidents or a coverage lapse.
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