Understanding Auto Insurance in Austin TX

Every state has auto insurance requirements. Some are more rigid than others and have higher limits. Auto Insurance Austin TX requires you to be able to pay for any accidents that you cause in the state. To ensure that you are able to do this, you are required to have a minimum of $30,000 worth of auto liability coverage for injury or death in any accident; with up to $60,000 worth of coverage per accident. You are also required to have $25,000 worth of coverage for property damage per accident. If you only have minimum coverage and the costs of the accident exceeds your coverage, the people that are involved in the accident can sue you personally to recover the difference. With the costs of new vehicles on the market, and the costs of medical care, exceeding the minimum levels would not be difficult.

Auto liability coverage will not pay for the damage to your vehicle or assist you with your medical expense. For this to happen you must have collision coverage. This is also required if you still have a lien or owe money on your vehicle. This will cover the costs of repairing your vehicle once you pay the deductible. If your car is deemed to be totaled and cannot be repaired, your original vehicle will only be replaced up to the amount of its market value. The collision portion of your Auto Insurance Austin TX will also cover you, your family members, and others who may be driving or riding in your vehicle with your permission.

Comprehensive Auto Insurance Austin TX will also be required if you still have a lien on your vehicle. This type of coverage replaces or repairs your car if it is damaged outside of an accident. The damage could be caused by acts of nature, such as wind or hail, fire, vandalism or theft. It will pay if you hit a deer, a dog, or a foreign object in the road. If you are unable to drive your vehicle some policies will pay for the costs of towing and rental car coverage.

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