Given the price of buying a new car, your car loan may be as long as 6 years. After paying for such a long time a celebration is called for. Not having a payment every month is worth celebrating. When you have a car loan, you must have a fully loaded insurance policy. Once you are not required by the lender to have auto insurance you may be considering letting your coverage lapse. At Insurance Over Texas Houston, TX we put our customers’ needs first and will work with you to find quality insurance at a price you can afford. 

The answer to the question "Do I need auto insurance when my car loan is paid off?" is yes, in Texas you do. You need to carry liability coverage in the amount of 30/60/25 or if not liability insurance then provide proof of the financial means to pay out of your own pocket for any damage you cause. In Texas, a basic policy will also include PIP (Personal Injury Protection) insurance and uninsured/underinsured motorist coverage unless you specifically ask to have it not included. 

The other types of coverage available but not required are collision and comprehensive. Collision protects your vehicle in the event you are the responsible party in an accident. Depending on the value of your vehicle, this coverage makes sense. If your vehicle has a value of less than $1,000 then you can skip it. Comprehensive covers your vehicle from hazards you have no control over. If your car is stolen or vandalized, damaged by flooding, fire, or high winds and hail, this insurance will pay to have your vehicle repaired or replaced. 

Contact Insurance Over Texas in Houston, TX to get a no-obligation auto insurance quote and the answer to any insurance questions you may have. 

Few of us would debate the need for auto insurance if we’re currently navigating the streets and highways in a car. It’s an absolute necessity. However, many people may wonder exactly how much insurance coverage is actually a necessity. The answer to this question will vary according to where you live. States have their own requirements when it comes to the minimum auto insurance state residents are required to carry as drivers. However, there are other variables that you’ll need to consider when it comes to accurately answer the question. 

State Minimums

As a driver, how much auto insurance you are required to cover will initially be determined by the state in which you live. Texas residents, like residents in other states, are required to carry specific minimums in auto insurance. Auto liability coverage is a requirement in the amount of $30,000 for bodily injury liability, this is per individual. Liability insurance minims also include coverage of $60,000 per accident. This insurance also includes liability coverage that includes $25,000 for property damage. All Texas drivers must carry these minimums in order to legally drive in the state of Texas.

Other Considerations

The minimum coverage may be adequate for many Texas drivers. It meets the state’s legal requirements to operate a vehicle. However, you may have other obligations that extend beyond the state’s requirements. For example, if you took out an auto loan to finance your car, more than likely the lender will require you to carry comprehensive insurance. Comprehensive or full coverage insurance coverage protects the lender by ensuring that their investment is protected and they can be compensated if something happens to the vehicle before the loan holder has paid off his or her auto loan. Insurance Over Texas of Houston TX takes pride in educating Texas residents about the state’s auto insurance requirements. We are also committed to helping Texas drivers choose coverage limits that will be most beneficial to them and understanding what’s truly necessary and what isn’t. Give us a call. We can’t wait to answer your questions.