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What is Auto Insurance?
Auto Insurance pays for damages, injuries, and other losses
specifically covered by your policy.

Texas law requires everyone to have auto liability coverage, if you still owe money on your car you must carry collision and comprehensive coverage.

Automobile Insurance
The Texas Personal Automobile Policy offers eight types of coverage.

1. Liability coverage pays others people's expenses for accidents caused by drivers covered under your policy.

2. Medical Payments coverage pays medical and funeral bills arising from accidents.

3. Personal Injury Protection (PIP) coverage pays same as medical payments, plus 80% of lost income and cost of hiring caregiver for injured person.
4. Uninsured/Underinsured Motorist (UM/UIM) coverage pays your expenses from an accident caused by an uninsured or underinsured motorist.

5. Collision coverage pays the cost of repairing or replacing your car after an accident. Payment is limited to your car's actual cash value, minus your deductible.

6. Comprehensive coverage pays the cost of replacing or repairing your car if it is stolen or damaged by fire, hail, vandalism, or any cause other than collision.

7. Towing and Labor coverage pays towing when your car can't be driven, or labor is done where your car broke down.

8. Rental Reimbursement coverage pays a set daily amount for a rental car.

All the above coverages have maximum dollar amounts set forth in your auto policy. Be sure and read your policy and know what your coverages are. We have publications if you are interested in knowing more about auto insurance.