The law in the state of Texas requires a car owner and driver to have auto liability insurance, and if he still owes money on his car, then his lender would require him to have collision and comprehensive coverage. It is advisable that the policyholder reads the policy to know exactly what it covers and understand his rights under Texas law.
This kind of coverage is also called the 20/40/15 coverage as it relates to a minimum level of coverage against compensation for automobile accidents.
This minimum coverage is:
$ 20,000 per injured person
Up to a total of $ 40,000 for everyone hurt in an accident
$ 15,000 for property damage
Since this basic coverage might not be enough if one is held liable for an accident it is advisable that the car owner covers his risks much beyond the basic limits.
Proof of Insurance
The car insurance companies always send a proof-of-insurance card to the policy holder and this proof-of-insurance card is required when:
A law enforcement officer asks for it after the policy holder’s car was found to have been involved in an accident
The car has to be registered or its registration has to be renewed
The policy holder has to obtain or renew his driver’s license
The car has to be inspected
Insurance coverage for rented cars
Automobile rental agencies in Texas normally offer collision damage waivers as well as liability policies although the collision damage waiver is not insurance. It is basically an agreement whereby the rental company waives its right to recover the cost of the damage to the car with certain exceptions regardless of who is at fault.
Coverage outside Texas
With a Texas automobile insurance cover the policyholder is automatically covered anywhere in the US as well as in Mexico and Canada.
Contact details of the TDI (Texas Department of Insurance)
Consumer helpline : 1-800-252-3439
In Austin : 1-800-463-6515