Why Do You Need a Car Insurance Policy in Texas?

Written By Alla Levin
November 02, 2021

Why Do You Need a Car Insurance Policy in Texas?

As per 2019 accident data, there were 12907 severe accidents in Texas, and around 15855 people sustained severe injuries. Car insurance is a contract between the policyholder and the insurance company that protects you against financial loss in a car accident or theft. Here are some reasons why you need a car insurance policy in Texas.

Mandatory by Law

All car drivers need to have adequate car insurance Texas. As per Texas laws, you need to have minimum car insurance of $30,000 per person. Also, the minimum car insurance per accident is $60000. You should also have property damage coverage of $25000.  These are only the minimums, and there is no guarantee the car insurance amount will be sufficient to cover damages to the car, property, and loss of life.

To Register Your Vehicle Register Your Vehicle 

As per recent data, there is a crash every 71 seconds somewhere in Texas. The Texas laws require you to have an insurance card while registering your vehicle with the transport authority.  To register your vehicle, you need to show the concerned authorities that you have taken minimum car insurance in Texas as mandated by the law.

Renew Registration

Texas laws also require you to show proof of current liability insurance while renewing your vehicle registration. You need to submit car registration papers and car insurance papers to an approved substation or the County office.

Compensate in Case of an Accident

According to 2019 Texas accident data, 256,797 persons were injured in motor vehicle traffic crashes. The car insurance can compensate you in case of an accident in both cases; you were at fault, or another person’s negligence caused the accident. Car accidents can lead to severe injuries, and you might need a long time to recover from injuries.

If none of the parties carried insurance, you have to file a lawsuit against the negligent party. However, no one can guarantee you will get compensated for the damages after filing the lawsuit. Car insurance ensures you receive timely financial assistance to pay your medical bills.

Different Types of Coverage You Need

  • Liability Coverage – Your car insurance needs to have liability coverage. This coverage is legally required in Texas to pay for medical bills, funeral costs, loss of wages in case of serious injuries. As per recent traffic data, one reportable crash occurs every 56 seconds, and one person was injured every 2 minutes 3 seconds in 2019.

The liability coverage also covers property damage and repair costs of the vehicle. This particular coverage can replace the damaged vehicle or pay for the rental car while the car that met with an accident is being repaired.

  • Collision Coverage – If a lender finances your car purchase, he will ask you to take collision coverage. The collision coverage covers the damage to the car until the car loan is not fully repaid. The coverage will pay you the current value of the car or pay for the repairs. In some cases, the insurance company will pay the amount mentioned on the declaration page of the car insurance policy.
  • Comprehensive Coverage – This coverage will pay for the repairs when your car is damaged by an event that cannot be categorized as an accident. For example, if your car was damaged by hail, storm, or vandalism, the comprehensive coverage will pay for the damages.

To sum up, these are a few reasons to have car insurance in Texas.  Accidents can happen to anyone and anytime. Having car insurance reduces your financial woes to a certain extent and ensures you can get the proper medical treatment without worrying about expenses.

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