Why You Need Optional Auto Insurance Texas Benefits Driving a car in Texas? You must go for an Optional Auto Insurance Texas Benefits Policy too with the mandatory policy that is imposed by the state. Mandatory auto insurance must include; Direct Compensation-Property Damage coverage, Accident Benefits coverage, Uninsured Automobile coverage, and Third Party Liability.
What is Third Party Liability?
Third-party insurance is a liability insurance that is purchased by the insured (second party) against the claims and lawsuit judgements to third parties (the affected person), the first party is an insurer, and responsible for its own damages or losses.
Accident Benefits coverage
Accident Benefits coverage provides compensation, regardless of fault, if you, your passengers, or pedestrians suffer injury in an automobile accident.
Uninsured Automobile coverage
Uninsured automobile coverage protects the policy holder if they are involved in an accident resulting in damages to their vehicle, injuries, death, etc. with a driver who does not have insurance (also called uninsured motorist).
Direct Compensation-Property Damage coverage
You deal with your own insurance company for a claim as Direct Compensation-Property Damage, your claim will be processed without waiting for a third party decision This covers damage to your vehicle and its parts if another person was at fault for the accident.
Mandatory Vs Optional Auto Insurance
In mandatory auto insurance policy, your third party liability coverage can be maximum $200,000, but optional auto insurance may be increased to $500,000/$1M or $2M.
Medical, Rehabilitation and Attendant Care Benefits are more helpful in optional auto insurance as it gives you an edge over mandatory policy.
In Mandatory auto insurance, you can claim Caregiver Benefits only in Catastrophic injuries, but optional auto insurance may be extended to include all injuries
Death and Funeral Benefits are more helpful in optional auto insurance as it is shown below:
|Mandatory Insurance Policy||Optional Insurance Policy|
|$25,000 to your spouse||$50,000 to your spouse|
|$10,000 to each of your dependants||$20,000 to each of your dependants|
|A maximum of $6,000 for funeral expenses||$8,000 for funeral expenses|
Have a look on this chart and decide yourself, either you want mandatory auto insurance or optional insurance benefits. We recommend our visitors to go for an optional Auto Insurance benefits because it adds value in your safety and saves your future benefits as we have mentioned before.