Individuals shopping for auto insurance in the State of Texas can benefit greatly from a bit of research about the factors affecting their rates, as well as tips on how to find the most appropriate coverage at a reasonable price. While Texas Law stipulates that insurance providers must provide adequate coverage and may not charge excessive rates, the interpretation of the law may vary considerably from one provider to the next. In the search for adequate, affordable car insurance, the first step is to determine the type of coverage you desire. Once you have decided upon this, you may be able to effectively compare rates between one provider and the next. The following are the types of insurance coverage that Texans will encounter:
* Liability car insurance - Liability insurance includes the minimum auto coverage required by law. It covers the driver, family members, and others driving the vehicle against damages caused to others due to an accident whose fault lay with the driver. The lowest amount of coverage required by law is called 25/50/25--which means up to $25,000 per injured person, up to $50,000 total for all bodily injury resulting from the accident, and $25,000 for all property damage created by the insured party if deemed liable.
* Medical payments coverage - This type of auto insurance coverage pays medical bills and funeral costs arising from automobile accidents, including cases in which the victim was a pedestrian or bicyclist. Injured individuals are covered in this way regardless of who caused the accident. This coverage may or may not be necessary depending greatly on whether there is additional coverage on the named insured's group or comprehensive major medical individual health insurance.
* Personal Injury Protection (PIP) coverage - Similar to medical payments coverage, but can cover up to 80% of lost income due to accident as well as the cost of a caregiver. Minimum PIP is $2500, and you must declare in writing to the insurance provider should you refuse PIP coverage. Personal Injury Protection like Medical payments coverage may be a duplication if other health insurance is already provided.
* Uninsured/underinsured motorist protection - This type of coverage protects you against damage and injuries caused by an uninsured or underinsured driver, including damages caused by a hit-and-run accident so long as you report the incident promptly to the police.
* Collision coverage - Covers the cost of repairing your car after an accident, regardless of who was at fault or who was driving at the time of the accident.
* Comprehensive (Physical Damage Other than Collision) Coverage - This coverage deals with damages that result from fires, hail, vandalism or other non-collision related incidents. This usually covers the car owner up to the full value of the car, minus the deductible.
* Towing and Labor Coverage - This covers the cost of a tow truck should your car become undriveable, or the cost of labor needed in roadside assistance to make your vehicle drivable.
* Rental Reimbursement Coverage - This coverage deals with the cost of a rental vehicle while your own vehicle is being repaired under damages covered by other aspects of your policy.
