Helpful Things to Know About Your Auto Insurance Policy
The Lone Star State offers Texas drivers lots of ways to save on car insurance. Texas has an unusual system of insuring drivers that sometimes is described as a “sorta-no-fault” approach. Like no-fault car insurance states, Texas decrees that auto insurance pays the owner of the policy when damage is down to the policy holder’s car. Like tort states, Texas also has a rule that the driver of the other car is free to sue you for damages not covered by his or her policy.
In Texas, it’s easier to get compensated for damage to your own car, but you have to be especially careful to maintain enough liability coverage to defend yourself against claims from other drivers. Any accident for which you are deemed responsible will have to come out of your own pocket if damages to a third parties exceed the liability amounts of your Texas auto insurance policy. This could be financially devastating, as those suffering losses would likely sue you for any costs over and above what your policy covers.