Luckily, you have a few different choices when deciding on car insurance. You can choose to keep your premium low and avoid deductibles by purchasing liability only coverage or you can purchase comprehensive coverage that protects you and your passengers from mostly everything. Liability only policies are required by law and do provide protection, but only in limited capacities.
Liability Only Coverage is Mandatory
In Texas, liability only car insurance is required. Basically, you cannot legally drive a vehicle without having the appropriate coverage to protect others from injuries you cause in the event of an accident. The “liability” of medical expenses, property damage and even loss wages is your responsibility.
Mandatory car insurance means that every driver, regardless of age or driving record must purchase a liability policy. Bodily injury, property damage coverage and in some cases even personal injury protection are pretty standard features with most auto insurance policies.
Bodily Injury
If you are at fault in an accident that causes injuries or fatalities to another, you are protected with bodily injury liability coverage. This coverage pays for medical expenses, pain and suffering, lost wages and in some cases even the legal defense if the accident prompts a lawsuit. Keep in mind, there are maximum limits, meaning that liability only car insurance in Texas may not pay for everything and you may still owe out-of-pocket expenses.
Property Damage
If you are found to be at fault in an accident that causes damage to another’s property, you are also protected. Property damage liability coverage covers the costs to repair or replace fences or other structures, cars, even homes that have been damaged. Also, legal fees due to any legal dispute are generally covered as well. Again, there are maximum coverage amounts.
Personal Injury Protection
In the state of Texas, it is also a requirement to have personal injury protection coverage. However, you are entitled to “sign off” the coverage if you do so in writing. Personal injury coverage protects you and your passengers from the costs of medical bills, lost wages, even funeral expenses. This coverage generally extends to the policyholders live-in relatives, passengers and authorized drivers.
Liability Only Coverage is Limited
Remember, liability only car insurance in Texas does not pay for any expenses resulting from injury or death to you or your passengers in the event of an accident. Liability coverage is only designed to protect other drivers from damage caused by your negligence. This means you are not covered in the event another driver is underinsured or has no insurance at all. In addition, if you or a member of your family is riding in a vehicle that is involved in an accident resulting in injury, medical payments may not be covered.
In the end, liability only insurance may save you money in the short term, because you pay less monthly and you don’t have to worry about deductibles. But in the long run, a little more coverage could end up saving you thousands of dollars out-of-pocket. One accident and you may be out a vehicle. Consider your options carefully.