Texas Personal Automobile Policy
State law requires everyone driving through Texas have the financial ability to pay for any accident that is his fault. The Texas Personal Automobile Policy is a standardized policy form that offers eight different types of coverage. Depending on the coverage, the insurance company may be required to offer the coverage by law. The policy determines who is covered in the event of an accident.
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Liability Coverage
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Liability coverage is the minimum coverage the state requires for drivers. Liability insurance covers the other driver's expenses. The coverage is limited to the policy's dollar limit. If the policyholder is arrested because of the accident, the policy pays the attorney fees and bail up to $250.
Depending on the policy, it may cover only those listed on the policy or it may cover the policyholder and family members. Some policies cover the policyholder in other vehicles, including rental cars.
Medical Payments
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The medical payment coverage pays medical and funeral bills resulting from any accidents. The coverage includes payments for pedestrians and bicyclists. Family members, the policyholder and the vehicle's passengers are covered regardless of who was at fault in the accident.
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Personal Injury Protection
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The personal injury protection (PIP) coverage offers the same coverage as the medical payment coverage. In addition to medical coverage, the personal injury protection coverage covers 80 percent of wages lost. The cost of hiring a caregiver for a person injured in the accident is also covered. At a minimum, the insurance companies must offer $2,500. Policyholders have the option to increase coverage. A policyholder declining coverage must do so in writing.
Uninsured/Under-Insured (UM/UIM) Motorist Coverage
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Hit-and-run accidents and accidents caused by under-insured or uninsured motorists are covered by the uninsured/under-insured (UM/UIM) motorist coverage when elected. The bodily injury UM/UIM pays for medical bills, pain and suffering, lost wages, disfigurement and disability. The insured does not pay a deductible. Auto repairs, damage to items inside of the car and a rental car are paid for by the property damage UM/UIM. The policyholder pays the first $250 of repair costs.
Collision Damage
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Collision coverage pays the cost of repairing or replacing a vehicle after the accident. The policyholder receives the cost of the vehicle's market value minus the deductible. All lenders require policyholders who are still paying on the vehicle to carry collision damage insurance.
Labor and Towing
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When vehicles are not drivable, the insurance company pays for towing charges. Labor charges for services, such as tire changes, are covered. The services must be preformed where the vehicle became immobile.
Rental Car Reimbursement
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The rental reimbursement coverage pays a set daily amount for a rental car. The covered vehicle must have been stolen or is in the process of a repair. The repair must be a policy-covered repair.
Comprehensive Damage
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Comprehensive coverage pays the cost of replacing or repairing the car when it is stolen or damaged by vandalism, hail or fire. A rental car is included in the policy when the car is stolen. Policyholders must report vehicle theft to the police. The policyholder receives the cost of the vehicle's market value minus the deductible. All lenders require policyholders who are still paying on the vehicle to carry comprehensive coverage.
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