Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto 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.

If you buy insurance to meet the state's financial responsibility law, you must buy 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 buying more than the basic limits to protect yourself financially.

Liability insurance doesn't pay to repair or replace your car or to treat your injuries. Consider buying other types of coverage - such as medical payments, collision, and comprehensive - to pay for these expenses.

Medical payments coverage, or “Med-Pay” as it is sometimes referred to, is another form of health insurance coverage for medical expenses incurred due to a motor vehicle accident. Med-Pay is offered as an alternative to PIP. You can purchase one or the other, but not both.

Just like Personal Injury Protection (PIP), this coverage is available to the insured driver and any passengers in the insured’s vehicle for medical expenses due to injuries sustained in the wreck, regardless of the fault of the driver. Again, the insurance policy of a negligent third party will not pay Med-Pay or PIP benefits.


There are several differences between PIP and Med-Pay coverage:

1.) PIP covers 80% of documented lost wages and earnings – Med-Pay has no coverage for lost wages and only covers medical bills;

2.) PIP does not have to be repaid to your insurer, even if you recover from a third party – If you recover from a third party, Med Pay must be paid back to your insurer;

3.) PIP will even cover medical expenses incurred due to an accident on a motorcycle, moped, scooter or motorized bicycle designed for use on public roads – Med-Pay excludes coverage for medical expenses incurred due to injuries while on a motorized vehicle having fewer than 4 wheels.


If you have any questions about your auto insurance coverage, we would be happy to discuss to make certain you select the coverage that's best for you.

When people hear the word "comprehensive," they might think "all-encompassing"— but in car insurance terms, the word has a different meaning.

Comprehensive coverage may help protect your car against damages that are not related to a collision, such as:

Theft
Vandalism
Fire
Natural disasters (like a hurricane or a tornado)
Falling objects
Damage done to your car by animals
A civil disturbance (like a riot that results in damage or destruction of your car)

As with all insurance policies, you should check with your insurance agent to make sure what perils are included under the comprehensive coverage of your auto insurance policy.

Because a deductible represents the amount you will pay for a covered loss, the higher deductible you select, the lower your insurance premiums will be.

Collision coverage covers damage to your car in a variety of situations. If you hit another car‐the damage to your car would be covered by this part of your policy. For example, if you hydroplane on a wet road and hit a tree, damaging your front bumper, Collision coverage would take care of the repair costs—less your deductible.

Collision is an optional coverage and to include it on your policy, you must also purchase Comprehensive coverage. If you lease or finance your car, your bank may require Collision coverage.

Because the deductible is the amount you would paid for a covered loss, the higher the deductible you select, the lower your insurance premium will be.