All states require that you carry liability coverage on your car in case of an accident. However, not all states require the same amount of coverage or the same types of coverage. In Texas, if you want to operate your vehicle on any public roads you need to carry liability insurance. You also need to have your coverage in place in order to renew your vehicle registration each year.
What Does Your Liability Cover?
Basically, liability covers in case you cause injury to another person or damage to their property. The injury can consist of medical injuries or loss wages which would go under the Bodily Injury coverage. Property Damage coverage would cover the other person's car or other property such as a house, fence, lightpole etc... There are some exceptions to this, such as your liability usually does not cover you if you hit another vehicle that you own.
Options:
What about people in your car?
People riding in your car including yourself are generally not covered under the Liability coverage. Instead they are usually covered under the Personal Injury Protection or Medical Payments option that can be purchased with the basic Liability. While it is advisable to carry one of these and in some states it is required, Texas does not require these coverages as part of the Liability. If you decide not to carry the Personal Injury Protection you will need to sign a rejection form stating such.
The difference between the Personal Injury (PIP) and the Medical Payments is that the PIP can cover for medical expenses and loss wages. Plus you can double collect. This means that if you are being covered under another policy, say the other driver's policy in a not at fault accident, you can submit the same bills to your company and collect again. Under Medical Payments coverage you can only collect for medical expenses...no loss wages...and you can not double collect. The Medical Payments option generally costs less than the PIP coverage.
What if you get hit by an uninsured driver?
If you are in an accident caused by an uninsured driver you can claim your injuries or damages under the Uninsured Motorist coverage. In Texas this is an optional coverage that can be added in with your basic Liability coverage. Uninsured motorist coverage usually covers hit and run accidents also. You may be required to make a policy report for this. Uninsured Motorist comes in two parts...Bodily Injury for medical expenses and Property Damage which covers your vehicle. You can usually get the Bodily Injury without having to get the Property Damage but you can not get the Property Damage without the Bodily Injury.
Policies can vary not only from state to state but from company to company. To have a better understanding of what your policy covers you should read your policy or contact your insurance agent.
