This is the purpose of liability insurance: it protects the insured's assets by providing a defense (insurance adjusters, lawyers to defend the claim and evaluate it) and under conditions that the insurance company will pay in exchange for total relief from any other legal obligation against the at-fault person. If your car can't be repaired (added up), the insurance company will often pay its actual value in cash (ACV). Some states require different types of car insurance by law; your insurance company will also provide that coverage in the event of an accident. If you want coverage for your vehicle, you must add comprehensive and collision coverage to your car insurance policy.
The definition of no-fault car insurance is simply a system in which your insurance company will pay for the injuries you and your passengers suffer, no matter who is at fault. Insurance policy limits are the maximum amount that the insurance company must pay for damages caused by a loss covered under the applicable insurance policy. Leslie Kasperowicz is an insurance expert with four years of direct experience in agencies and more than a decade creating educational content to help insurance buyers make informed and confident decisions. Read on to learn the minimum car insurance coverages by state and why you should consider taking out more auto insurance coverage.
Texas drivers choose to take out insurance either because they don't have the assets to establish financial responsibility through other methods, or because buying insurance makes more financial sense in light of their assets, debts and financial obligations. State minimum liability insurance rarely provides sufficient coverage and doesn't provide any protection for your car or pay for the injuries you and your passengers suffer.