Regardless of whether you drive a car in Dallas, Houston, or anywhere in the state of Texas, you must comply with Texas financial responsibility requirements.  There are several ways to comply with Texas law; the majority of Dallas drivers comply by purchasing auto insurance.

The Texas Department of Insurance website states the following:

Texas law requires people who drive in Texas to be able to pay for the auto accidents they cause.  Most drivers do this by purchasing auto liability insurance.

Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses. It does not pay to repair or replace your car or for your injuries.

The minimum coverage amount required by the state’s financial responsibility law is  $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.

The limits will increase on January 1, 2011, to $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. Drivers will be required to comply with the new limits as their policies are issued or renewed on or after the effective date.

Just because you are in compliance with Texas state law does not mean that you have enough auto insurance coverage to protect you and your family financially. According to Jeanne M. Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute,  “… drivers need both the right amount and type of auto insurance for their specific situation.”

When choosing an auto insurance policy, it is important for Texas drivers to choose enough auto liability insurance to protect your home and assets.   Generally, auto insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.  Typically if drivers get involved in injury related accidents, costs could surpass the minimum requirements for the state of Texas.

In addition to having enough liability protection, there are some other coverages you should consider:

• Uninsured and Underinsured Motorist Bodily Injury: Reimburses you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver or a driver that does not have enough auto insurance for your injuries.
• Uninsured and Underinsured Motorist Property Damage: In Texas, drivers should also consider uninsured motorist property damage.  Unisured and Underinsured Property Damage reimburses you for damage to your car  if your accident is caused by a unisured or underinsured driver.  Generally, uninsured motorists property damage has a $250 deductible.

If your car is financed, your financial institution will require that you carry Collision and Comprehensive coverage to protect your car in case it is damaged in an accident.

• Collision: Pays for damage to your car resulting from a collision with another car, an object or as a result of flipping over.   It also covers damage caused by potholes. Regardless of whether an accident is your fault or another driver’s fault, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible.   If an accident is not your fault but it pays for damage to your car under collision, your insurance company may try to subrogate and recover your deductible.
• Comprehensive: Pays for damage or loss of your car  due to theft or damage caused by something other than a collision with another car or acts of nature, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer. Comprehensive coverage also pays for glass damage as well.

On the average, after an accident a car being repaired will stay in the repair shop for two weeks after an accident.  By carrying Rental Reimbursement,  drivers can save a substantial amount of money after an accident.

• Rental Reimbursement: Reimburses you for the cost of renting another car while yours is being repaired. Even if the accident is another insured driver’s fault, if you have your own rental reimbursement coverage, you do not have to wait for the other insurance company to authorize a replacement rental car.  Check with your auto insurance claims department