Auto Insurance Basics
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides property, liability and medical coverage:
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying automobile liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in an accident.
Most auto policies are for six months or a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.
Texas State Minimum Coverages
If you buy insurance to meet the state’s financial responsibility law, you must purchase at least the minimum amount. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider purchasing more than the basic limits to protect yourself financially.
Liability insurance does not pay to repair or replace your car or to treat your injuries. Consider purchasing other types of coverage – such as medical payments, collision, and comprehensive – to pay for these expenses.
Shopping for Auto Insurance
Rates vary among companies, so it pays to shop around. The following tips can help you find the best deal for your money:
- Decide before shopping what coverages you need.
- Consider choosing a higher deductible. The deductible is the amount you must pay before the insurance company will pay. Higher deductibles will lower your premium, but you’ll have to pay more out of your own pocket if you have a claim.
- When getting a price quote or applying for insurance, answer questions truthfully. Wrong information could result in an incorrect price quote or could lead to a denial or cancellation of coverage.
- Ask your agent if you qualify for any discounts the company offers.
- Consider factors other than price, including a company’s financial rating, complaint index, and license status. The financial rating indicates a company’s financial strength and stability, and the complaint index is an indication of its customer service. Buy only from licensed companies and agents. It is against the law to sell insurance without a license in Texas. You can also use the Shopping for Auto Insurance Company/Policy Comparison Worksheet to help you gather information about companies and the policies they offer.
About La Familia Insurance
Our goal is simple, look at our name, Afformic Insurance, Affordable and Economic Insurance! We will stay local and loyal to the Great State of Texas, making sure our auto insurance rates are competitive in Texas, we have Texas style service and we have Texas style discounts. Afformic will only provide auto insurance online in Texas, and hopefully your support will drive us to great heights. The insurance you buy is underwritten by Empower Insurance on Old American County Mutual paper. Empower is a multi-award winning company, named Company of the Year four times by the Professional Insurance Agents Association and the National Professional Insurance Agents. If you have any more questions, please do not hesitate to contact us and we will get back to you within 24hrs.
Call us today for Texas Auto Insurance quotes at 888.751.7511.