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News
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TDI News Releases
Current News Releases from the Texas Department of Insurance
- HHS Denial
01/27/12 -
- TWIA Statement
01/26/12 - Commissioner Eleanor Kitzman of the Texas Department of Insurance issued a statement today following the TWIA Board's decision to retain a consulting actuary.
- Self-insure
01/24/12 - AUSTIN, TX - The Texas Department of Insurance, Division of Workers’ Compensation approved 13 renewals of the certificates of authority for companies to self-insure their workers’ compensation claims for a one-year period.
- workinjury2010
12/13/11 - Texas reported a fourth year decrease in the number of work-related injuries and illnesses requiring days off work in 2010.
- Commissioner Statement
11/22/11 - Commissioner Kitzman issues statement on NAIC resolution urging Congress to amend the Medical Loss Ratio provisions of the Patient Protection and Affordable Care Act to ensure consumer access to agents and brokers.
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Texas law requires you to have auto liability insurance, and
if you still owe money on your car, your lender requires that
you also carry collision and comprehensive coverage. Auto insurance
pays for damages, injuries, and other losses specifically covered
by your policy. Read your policy carefully to know exactly
what it covers. Pay special attention to the exclusions section,
which lists the things your policy does not cover. The front page
of your policy is called the declarations page. It contains useful
information such as the exact name of your insurance company,
your policy number, and the amount of each of your coverage and deductibles.
Auto Insurance Coverage and Consumer Bill of Rights
Texas Requires Proof of Financial Responsibility
If you drive in Texas, you must show that you can pay for
accidents you cause. Most Texas drivers do this by buying
auto liability insurance. Texas law requires minimum coverage
of $20,000 per injured person, up to a total of $40,000 for everyone
hurt in an accident, and $15,000 for property damage. This basic coverage
is called 20/40/15 coverage. However, basic coverage might not be enough
if you are held liable for an accident. You should consider buying
more than the basic limits. When you buy an auto policy, your insurance
company will send you a proof-of-insurance card. You will have to show
proof of insurance when you are asked for it by a law enforcement officer
have an accident register your car or renew its registration obtain or
renew your driver's license get your car inspected.
Texas law provides severe penalties for violating the state's
financial responsibility laws. A first conviction will result
in a fine between $175 and $350. Subsequent convictions could
result in fines of $350 to $1,000, suspension of your driver's
license, and impoundment of your automobile.
Auto Insurance Coverage
The Texas Personal Automobile Policy offers eight types of coverage. Texas law requires you to have basic liability coverage. The other coverages are optional, but if you still owe money on your car, your lender will require you to have collision and comprehensive coverage. The following describes the eight types of coverage available in the Texas Personal Automobile Policy. Auto insurers may offer alternative policies if approved in advance by TDI.
Liability Coverage
Pays: Other people's expenses for accidents caused by drivers covered under your policy, up to your policy's dollar limits. These may include the other person's medical and funeral costs, lost wages, and compensation for pain and suffering car repair or replacement costs auto rental while their car is being repaired punitive damages awarded by a court. Liability insurance also pays attorney fees if you are sued and bail up to $250 if you are arrested.
Covers: You, your family members, and other people driving your car with your permission, even if they don't have their own liability insurance and are not named on your policy. You and your family members also are covered when driving someone else's automobile - including a rental car - but not a car that you don't own but have regular access to, such as a company car.
Medical Payments Coverage
Pays: Medical and funeral bills arising from accidents, including those in which the victim was a pedestrian or a bicyclist.
Covers: You, your family members, and passengers in your car, regardless of who caused the accident.
Personal Injury Protection (PIP) Coverage
Pays: Same as medical payments coverage, plus 80 percent of lost income and the cost of hiring a caregiver for an injured person.
Covers: You, your family members, and passengers in your car, regardless of who caused the accident.
An insurance company must offer you $2,500 in PIP, but you can buy more. If you don't want PIP, you must reject it in writing.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
Pays: Your expenses from an accident caused by an uninsured motorist or if the other driver did not have enough insurance to cover your bills, up to your policy's dollar limits. Also pays for accidents caused by a hit-and-run driver if you reported the accident promptly to the police.
Bodily injury UM/UIM pays without deductibles for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability.
Property damage UM/UIM pays for auto repairs, a rental car, and damage to items carried in your car. There is an automatic $250 deductible. This means you must pay up to $250 of the repairs yourself.
Covers: You, your family members, passengers in your car, and others driving your car with your permission.
Insurers must offer UM/UIM coverage, but you can reject it in writing.
Collision (Damage to Your Car) Coverage
Pays: The cost of repairing or replacing your car after an accident, regardless of who was driving or who was at fault. Payment is limited to your car's actual cash value, minus your deductible. Actual cash value is the market value of a car like yours before it was damaged.
Comprehensive (Physical Damage Other than Collision) Coverage
Pays: The cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail, or another cause other than collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won't pay for an auto theft unless you report it to the police. Payment is limited to your car's actual cash value, minus your deductible.
Towing and Labor Coverage
Pays: Towing charges when your car can't be driven. Also pays labor charges, such as changing a tire, at the place where your car broke down.
Rental Reimbursement Coverage
Pays: A set daily amount for a rental car if your car is stolen or is being repaired because of damage covered by your policy. |
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