Unless you live in New Hampshire, you need auto insurance. 49 out of the 50 states in the US require you to drive a car with an active insurance policy sitting in your car’s dashboard or kept safe at your home.
No federal mandate dictates the need for car insurance. Laws concerning automobile insurance are chalked out and enforced at the state level. Each state may have a different requirement. Needless to say, most states demand an insurance policy.
Why is auto insurance mandatory?
Picture yourself as a young driver, cruising through the streets on a Saturday night. Chances are you are slightly high as well. And, you accidentally hit another vehicle. The fault was squarely yours in this scenario so no amount of arguing can get you out of the situation.
Consequently, you need to take responsibility and pay handsomely for the damage that you have done. Those are heavy expenses that popped out of the blue. Your parents and friends are not going to help here. However, auto insurance can help. This is why the state in which you live in requires you to have car insurance.
The chief aim of the law is that you need to be insured so that you are financially responsible. This means that you can:
- Compensate anyone who you injure as a consequence of your driving (as pictured above)
- Take financial responsibility for the property damage
Minimum state insurance
Another term that you need to be familiar with is the minimum state insurance. It is the minimum requirement for car insurance that varies as per each state. You can get a clear look at each state’s requirements via the state insurance commissioner’s website.
Four chief types of coverage include:
Bodily injury liability
This is coverage as per accident and per person.
Property damage liability
This is defined by per accident. Property damage liability does not include damage to your car but damage to the property/car that you have injured.
Personal injury protection (PIP)
PIP is defined per accident and per person. It is for in-home services, disability or income loss, medical expenses, rehabilitation, and cremation or burial costs as per the specific wording required by each state for minimum requirements.
Uninsured/Underinsured motorist protection
This coverage is also outlined per person and per accident.
Most states require the first two coverage types, bodily injury and property injury liabilities. The first type of coverage is legally required in Texas.
Auto insurance requirement in Texas
Drivers in Texas are required to have a minimum coverage of $30,000 per injured person or $60,000 per accident as per the state law. Moreover, Texas drivers are also needed to have coverage of a minimum of $25,000 for property damage.
In short, these coverage requirements are termed as 30/60/25 coverage by the legal and insurance professionals. These sums are the minimums though, and there is no guarantee of the costs that will total up in the unfortunate event of a car accident.
As mentioned, Auto Insurance Dallas does not bind you to have insurance against uninsured and underinsured drivers. It is a good idea to get this type of coverage though. It can help protect you in case you get hurt in an accident by a driver who did not have insurance or didn’t have sufficient coverage to handle the damages.
The state of Texas requires that you have liability coverage. This coverage type pays your costs such as funeral expenses and medical bills. It also includes cost coverage in an incident of serious injury, pain, and suffering. Additionally, it includes property damage such as replacing or repairing a damaged car. Liability coverage pays for rental cars as well while repairs are ongoing.
Getting car insurance
Since your vehicle is going to be legally registered and you will be driving it on public roads, you will need your state’s minimum liability coverage for auto insurance. Several vast roads and highways are part of the Dallas-Fort Worth area. Drivers spend approximately 54 hours in a year stuck in traffic.
These factors add to the odds of vehicular accidents. For every 100,000 people, there are 1,988 accidents on average in Texas. Particularly speaking about Dallas, we have about 2,451 accidents.
Estimates say that in a year, there are about 6.56% chances of getting involved in a car accident. This is slightly higher than the risk that Texans face at 5.27%. In the light of these factors, it is best to be prepared by getting insurance and have its proof on board with you as you drive.
Before you dive into getting the required insurance, make sure that you compare and contrast various automobile insurance providers so that you can get the insurance, which is best for your vehicle.
In a nutshell, we can all drive recklessly sometimes. On top of that, accidents can happen regardless of how carefully you ride your car. Therefore, it is best to take responsibility of your driving and be insured so that you are prepared to repay damages in case of an accident.