Auto Insurance provides a contingency. In case your personal automobile suffers damage from an accident, or is stolen. The contract between you and the Auto Insurance Companies allows you to be compensated for your losses.
Auto Insurance Companies Provide Coverage for
- Property Coverage: It pays for the damage done to your automobile. Or if it is subjected to theft.
- Liability Coverage: Property damage caused by the insured to a third party is covered under the terms. If you are found at fault for a collision or damage. Then this option allows you to pay for it.
- Medical Coverage: It covers you to pay for medical bills. In case of an auto accident, treatment, surgery and rehabilitation. All are covered by this policy. It can also pay for funeral charges in case of a mortality.
It is a legal requirement for every auto user to have an insurance in US. There is no avoiding it. However, the minimum amount of coverage varies for each state.
The minimum requirements in the state of Texas are;
- $30,000 bodily injury liability coverage per person.
- $60,000 bodily injury liability coverage per incident.
- $25,000 for property damage coverage per incident.