As the second largest state both in terms of geography and population, there is a major system of freeways and toll roads and an equally heavy traffic load. Reflecting this, some 3,500 each year are killed on the roads, the second highest rate of death in the U.S. There are also serious problems of car theft in some of the cities. This justifies serious consideration to buying more than the minimum policy.

Through this site, it is easy to find good value auto insurance policies. The main types of insurance policy to look for are:

1. Liability
2. Collision/Comprehensive
3. Uninsured/underinsured driver
4. No fault/Personal Injury Protection

Almost all US States require drivers to carry a minimum level of liability insurance as a condition of driving on the public roads. This gives some protection to anyone who is injured or who suffers damage to their property in a traffic accident. If you do not have a valid insurance policy, prosecution and a fine are the usual consequences. Convicted drivers may also lose their license to drive.

You will find detailed help on the website operated by the Texas Department of Insurance at http://www.tdi.state.tx.us/. As a consumer, you can call the hotline directly: 800-252-3439. This site is useful not only as a guide to finding liability and other insurance cover, but also because the Department runs a complaints service.

Texas has a new financial responsibility verification program called TexasSure. The estimate is that up to 20% of the vehicles on the road are uninsured. Insurance companies will now automatically notify the Department of Insurance when a policy is in force. Now law enforcement officers have real-time access to insurance information on every vehicle and can no longer be deceived by fraudulent proof of insurance cards.

In Texas, the minimum liability insurance requirements for each vehicle on the road are:
(a) for bodily injury: up to $25,000 per person and no more than $50,000 per accident distributed equally among all those injured; and
(b) for property damage: $25,000 per accident.

No other insurance is required to drive in Texas. Comparatively, these figures are low when you consider the likely medical costs of anyone injured. Similarly, the cost of repairing vehicles can quickly exceed the minimum provision. Remember that, if you are at fault and a claim is made, you are personally responsible for paying whatever amount is awarded by the court less the sum insured. It is therefore worth topping up the insurance cover if you have property and other assets that might be sold to satisfy a judgment against you. If you have an auto loan or use a rental vehicle, you may also be required to carry additional cover. Also remember that the mandatory requirement only covers liability to third parties and does not include damage to your own vehicle. The main options are as follows.

Collision covers the damage to your own vehicle if it is involved in an accident — almost always subject to a deductible. This will either be the cost of repair or, if repair is uneconomic, the fair value of the vehicle.

Comprehensive covers all the other situations in which your vehicle may be lost or damaged, e.g. through theft, vandalism, storm damage, etc.

Some drivers prefer to acquire No-Fault and Personal Injury Protection insurance where this is available. Currently, twelve states require or allow no-fault policies. This reduces the stress of making a claim because the insurance company pays out for your own injuries and property damage no matter which driver is at fault.

You should also consider carrying uninsured or underinsured cover against the risk that the other driver(s) involved in the accident either drive off without identifying themselves or do not carry insurance, whether at all or sufficient to pay for your losses.

Think about GAP insurance to cover the difference between the amount owing on an auto loan or long lease, and the amount you recover as fair value when your vehicle is totaled.

You should look for specific terms to compensate you against your own loss of use, rental of an alternative vehicle and the cost of towing your vehicle to a repair shop. A final issue to consider is whether your household policy covers any personal property damaged in the accident. If not, separate cover should be put in place if you regularly wear expensive clothing, jewelery, watches, etc. and/or carry expensive property like a laptop.

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