If you live or work in Austin, Texas, and are looking for car insurance, you may wonder exactly how much coverage you actually need. You know there is a “state minimum,” but you are concerned that it might not be enough.
Only you can decide how much insurance coverage you will need, and that will depend on a number of factors. These factors include:
- For example, if your car is not yet paid for, the lien holder may require you have full coverage, or if you use your car for business purposes, you employer may require you to have full coverage. If it is paid for, and is an older car, you may be able to get by with just liability.
- Texas state minimum insurance requires that you have $25,000/$50,000 in bodily injury liability and property damage liability of $25,000. Again, unless you are required by your lien holder or employer to have full coverage, this is all the auto insurance coverage you need to be considered legally covered in Austin, TX.
If you want more coverage, you can choose from several options:
- These include coverage for injuries caused by an uninsured motorist (coverage amounts are usually $25,000/$50,000), personal injury protection (usually $2,500), and medical payments ($2,000). Remember, these are optional; they are not required coverage requirements.
The best thing to do is to first determine if you are required by any other entity except the State of Texas to have full-coverage insurance. Then, get several quotes on both full coverage and liability alone. This will help you decide how much insurance you need.
Every year thousands of people are involved in a car accident. Some accidents are very costly and others only require small a small amount of money to fix. In some cases the insurance coverage is more than enough to cover all losses, and in other cases it falls short in covering all expenses. So how much coverage is enough for an insurance policy?
There are several things to think about when deciding about the amount of coverage for an auto policy. The first question to ask is “If there was an at-fault accident, what coverages would be enough to cover all the injury and damage that can occur?” In most cases, hospital bills run into the thousands and damages to property can be just as high. The state minimums are set to cover only minor expenses. Most recommendations for liability coverage are around 100/300/100. Some people will often carry the 250/500/100 limits for just a few dollars more. In some states it is actually cheaper to carry the higher coverage limits versus the minimum amounts.
One other thing to consider is “How much physical damage coverage is enough to carry on a personal auto?” The only thing to think about is whether you can handle the deductible amount in the event of a claim. If paying $500 is within your means then you can save a little on the auto premium.
Insurance amounts are designed to protect the policy holder in the event of a claim or loss. If the insurance coverage is not enough to pay all losses then the policy holder can be sued for the rest. Check with an insurance agent for what may be right for you.
Flood insurance is a policy that is provided by the federal government for people who wish to protect their investments from a flood. In some cases an insurance company will require a policy holder to have flood insurance before they will insure the home. In other cases homeowners are not required to purchase flood insurance. So how does one decide whether or not they need flood insurance?
One way to decide about flood insurance is to find out in what flood zone the house is located. A flood zone A is the worst flood zone in which a home could be located. It means that the home is more likely to have a flood destroy it than a house located in a flood zone X. A flood zone X is the best zone in which a home could be located. This means that it is not as likely that the home will be flooded anytime soon. However, a flood can happen at any time and at any place.
Another way to decide is to find out if your insurance company requires flood insurance on the property. Most homes located in a flood zone A will be required to have a flood insurance policy in force before they will insure the home.
Lastly it comes down to preference. If your home has been flooded in the past then it may be a good thing to carry the policy. However, if the home is located in an area that has never been flooded then you will have to think about the realistic possibility of a flood happening in the future.