When it comes to insuring your car, many people have inadequate coverage that can wind up causing them big problems in the future. While every car on the road in Texas requires insurance, there is nothing in the law that requires one to carry more than the minimum statutory amounts.
Financial responsibility laws require drivers to be responsible for any property damage or injury that is a result of their own negligence. The basic minimum policy requirements are often referred to as a 30/60/25 policy. That means for any single accident, you have $30,000 coverage for injury to a person or up to $60,000 for all occupants and you have $25,000 of coverage for property damage.
In today’s world, the basic coverage may not be enough to adequately protect you in the event of a serious accident. If you own a home or have a reasonable net worth, you could lose everything if you are the cause of a serious or fatal accident. A more appropriate type of coverage would be 100/300/50.
Many people think that if they have the basic insurance required by law then they are safe to drive. If you get pulled over by a police officer you will need to show proof of insurance. If you get pulled over for speeding and do not have insurance, you could face a much more substantial and severe penalty and fine.
It is definitely better to pay a little higher premium and get the proper amount of coverage than it is to try and save a few dollars and be under-insured. Driving is a privilege and not a right. With that privilege comes responsibility. Responsible drivers have adequate insurance.
Insurance is definitely not easy for the average person to understand. You can be a top student in school or college and still understand very little about insurance. Fortunately there are guides, online articles, and insurance agents to help novices learn details about Texas home and auto insurance.
The first thing to understand about Texas car and home insurance is that an insurance company insures risks, and you pay what is called a “premium” for this service. For a small amount of money, you can insure a home or car worth thousands of dollars.
You do your part by paying your premium, and your Texas home and auto insurance company does its part by accepting the risk. If you are involved in a car accident or a disaster strikes your home, your insurance company then pays its part and helps to restore damages.
When you purchase a Texas home and auto insurance policy, each word or tem, such as deductible, coverage, benefits, comprehensive, collision, liability, full coverage, tort, medical payments to others, funeral benefits, debris removal, mold, and so many more will be explained fully in each of your policies. Although your agent will also explain your policy to you, when you receive your policy, it will be your responsibility to read it through.
As you compare Texas home and auto insurance companies and you learn how to understand Texas Insurance, you will realize that you want the best insurance coverage from the very best company at the lowest premium.
Unless you are comfortable living life on the edge and taking big risks, you should never own a home without having adequate insurance. There are just too many things that can go wrong. Why expose yourself to a major lawsuit if someone happens to get injured on your property? Why take a chance of losing all of your possessions to theft or a fire? The prudent person will always carry homeowners insurance.
Some people believe that once their house is paid off and they no longer have a mortgage that they can get rid of the insurance on their homes as well. Technically, if you own your home free-and-clear, you are under no obligation to continue to pay homeowners insurance. When you had a mortgage, the lender required you to carry homeowners insurance to protect their interest in the property. Now that the property is all yours, the only obligation you have is to pay the property taxes and any other fees that may be required.
However, if you have been lucky enough to actually pay off your mortgage, it’s advisable to continue to keep a homeowners insurance policy in force. The risk-return ratio of having a policy as opposed to living without protection highly favors insurance. It may cost you $100 or $200 per month for insurance, but, if you suffer an uninsured loss you may be $10,000, $20,000 or more out-of-pocket. Most people can not afford such an expense.
Celebrate the fact that you have been able to pay off your mortgage. Keep your homeowners insurance policy intact. Even though you will have to pay a monthly premium, the cost of housing has dropped substantially since your house was paid off. Be happy, safe and secure in your paid off home!
Texas laws, like other states, require individuals that wish to own and operate a motor vehicle to be responsible for any injury or damage they may cause. Purchasing auto insurance is the way most people comply with the law, but, it is possible to self-insure by setting aside sufficient funds that meet the mandatory minimum coverage requirements. The law requires the responsible party in an accident to have coverage to pay for the damage caused to property and any injuries caused to people.
This liability coverage is subject to a minimum policy of 30/60/25 coverage. That translates into $30,000 in medical coverage per person per accident and $60,000 total medical coverage for all individuals hurt in an accident. A total of $25,000 is allocated for damage to the other vehicle or property.
The law requires you to show proof of insurance in a number of different situations. You must always be willing and able to show a police officer your proof of insurance anytime he or she asks. If you are in an accident, the law requires you to share insurance information with the other party. Getting a driver’s license or renewing a license is another situation where the law requires you to produce proof of insurance. ou will need it when you buy a new car and need to register it or if you want to renew your current registration. Finally, Texas law requires a valid insurance card when it comes time for your car to be inspected.
Failure to carry proper insurance can result in fines, suspension of your license and even impoundment of your vehicle. For first time offenders, the fine can be between $175-$350 and for repeat offenders, the fines can be anywhere from $350-$1,000.
If you own a home and a car, you probably have auto insurance and homeowners insurance to protect you against property damage and liability. That may be a good start, but did you know that many people can benefit by purchasing separate flood insurance?
Is My Homeowner’s Policy Good Enough?
A standard homeowner’s policy does not cover flood damage that originates outside your home. Your policy probably covers you if a pipe bursts and floods your living room, but it will not cover you if a river overflows or a tremendous rainstorm deposits two feet of mud and water throughout your house.
Who Should Buy Flood Insurance?
If you live in an area prone to flooding, you should buy flood insurance. FEMA has maps that designate flood zones and if you fall into one of them, you not only would be wise to buy flood insurance, but you may actually be forced to buy it by your mortgage holder.
How Much Does it Cost?
There is some good news when it comes to paying for flood insurance. Depending upon where you live and how likely your area is to flood, a policy can cost as little as a few hundred dollars to a little more than $1,000.
What Does a Flood Insurance Policy Cover?
A flood insurance policy has two parts. The first part covers damage to real property, your house. The second part covers personal property, or the contents of your house. You can choose to have only coverage for real property or you can also insure your personal property. A higher deductible will lower your premium.