Guide to purchasing auto insurance in Texas

Know before you buy -- protect your family and guests with good auto insurance.

Select a reputable insurance company

When you really need auto insurance is after an accident. Unfortunately, by then it is too late to find out the company you are insured by is difficult to deal with or won't answer phone calls, or you don't have enough coverage. When you go to buy insurance, you should start by selecting a handful of companies that are known to be consumer-friendly, and have a good reputation. Look for an independent agent, who is able to quote and review more than one company. Also try to obtain recommendations from family or friends. Talking to a local personal injury lawyer may be a good idea, too. They can let you know how well a company protects its customers.

Select the right liability coverage.

Texas law requires you to have at least $25,000 per person/$50,000 per accident liability coverage. With the high costs of medical care, that is simply not enough. I recommend that you have $50,000 per person/ $100,000 per accident or higher. This will provide $50,000 to cover injuries to one person, or $100,000 total for more than one person, if you cause an accident. Face it. Everyone has run a stop sign before. You may be a good driver, but you need to be responsible to others using the road in case you or a family member makes a mistake.

Get plenty of PIP

PIP is Personal Injury Protection Coverage. It is a GREAT thing, so don't reject it. PIP covers YOUR injuries or those of a resident of your home (as long as they are not excluded under the policy) in the event of an accident involving a motor vehicle. For instance, if your child is riding her bike and hit by a car, PIP provides coverage. PIP is "no-fault" which means that it doesn't matter who caused the accident. PIP covers medical bills and lost wages, even if you have health insurance. Texas Law requires insurance companies to offer you $2500 in PIP. Take it. In fact, PIP coverage is so cheap that I recommend you carry the maximum PIP your insurance carrier offers, which should be at least $5,000 or $10,000. (Some companies even offer PIP up to $100,000). The average ER visit after a minor accident can cost $5,000. So get as much PIP as you can.

Get Underinsured/Uninsured Motorist coverage (UM)

Uninsured/Underinsured motorist coverage (UM) covers YOU and YOUR passengers and YOUR household members in an accident if (1) the driver who caused the accident has NO insurance or (2) doesn't have enough insurance. UM is available in limits that mirror your liability limits. Texas Law requires the insurance company to sell it to you, but allows you to reject it if you do so in writing. DON'T reject it, or you will be skimping on cheap coverage for your family! Get at least $50,000/$100,000 in UM coverage, because there are many drivers who have no coverage, or only the minimums. Say you are hurt in an accident, and the other driver only has $25,000 in coverage. Your UIM coverage will kick in, and add another layer (say $50,000, if you have that much) to cover your injuries. That means that you have up to $75,000 to pay for your medical bills, lost wages, and pain and suffering. Medical bills are high, folks!