A policy for Auto Insurance in Kyle TX can include a provision protecting the person if an uninsured or underinsured driver causes a collision. Financial experts encourage consumers to at least buy the minimum coverage available for this part of the policy.
Uninsured and Underinsured Drivers
When another driver does not have any automotive insurance, there usually is no way to obtain compensation from this person for property damage and expenses related to injuries. A policy with only the minimum liability coverage may not even come close to paying all the expenses after a collision, which is why this is viewed as being underinsured.
Minimum Required Liability Coverage
Texas currently requires at least $30,000 of liability coverage for each injured person, but the minimum total liability is only $60,000. Hospital bills and other medical expenses can easily run much higher than that after a serious accident.
Although Texas state law requires drivers to carry liability Auto Insurance in Kyle TX, that doesn’t mean everyone complies with the law. The Insurance Research Council reports that about 14 percent of Texas drivers do not have car insurance. The state ranks 16th on a list of worst offenders in this regard, with Florida ranked top with nearly 27 percent of its drivers being uninsured. What these drivers figure not paying for insurance is worth the chance of getting caught, which they assume is unlikely.
The Option to Opt Out
Agents from a firm like Perdue Insurance Group offer uninsured and underinsured motorist coverage as a matter of course. In fact, it’s typically just included in a standard policy, with the customer having to actively opt out. But the state does not require residents to carry this insurance. Choosing not to have this coverage does not lower premiums by a substantial amount and puts the person at significant financial risk.
There are better ways to reduce premiums. One is to raise the deductible on collision or comprehensive coverage, but make sure it’s an affordable amount in case any damage does occur to the vehicle. Another is to be a very safe driver and shop for safe driver discounts that are prevalent among insurers.
