What Are the 3 Major Types of Car Insurance in Texas?

What Are the 3 Major Types of Car Insurance in Texas?

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3 Major Car Insurance Coverages before you embark on the journey of purchasing an auto insurance policy. It’s so important to understand that there is a number of auto insurance coverage available. Although some are termed absolutely necessary, there are a few that can add additional costs to an already beaming expense pay list.

3 Major Auto Insurance Coverages

So what are the different kinds of major auto insurance coverages? What do they cover and how important is it to have them under your belt. To help you understand questions like these, we’ve lined up everything you need to know about the 3 major types of car insurance coverage available.

  1. Comprehensive Insurance Coverage

Comprehensive Insurance Coverage


In simple terms, comprehensive auto insurance coverage is the name given to a type of coverage that covers damage related incident costs, other than the accident itself.

This means helping the owner pay for the repair and replacement of a vehicle that has been stolen or damaged in incidents other than a collision. In situations where you plan on financing or providing lease of your car, the lender will most probably require comprehensive auto insurance coverage.

Related: Looking for the Best Comprehensive Auto Insurance Coverage in Texas?

The following examples are situations where comprehensive insurance coverage is termed to be necessary or comes in handy:

  • Incidents of theft
  • Situations involving vandalism
  • Objects falling from above
  • Incidents involving natural disasters such as hurricanes, tornadoes, flooding
  • Fire situations
  • Situations where animals damage the car
  • Civil disturbances such as protests or riots that could possibly result in complete damage or destruction of the car
  1. Liability Insurance Coverage

Liability Insurance Coverage

Liability Insurance coverage will cover the charges that occur due to an accident that took place due to your negligence. It’s like rescue coverage for incidents where you as a driver are at a fault. This type of coverage is considered as essential. For obtaining by the law so there’s no backing down on its purchase.

This form of auto insurance coverage will cover all the necessary costs. Related to the third party’s injuries. and damage of their property or even death.

Related: What does liability Insurance Cover?

It is recommended that all vehicle owners purchase a liability insurance coverage premium that is set at a higher rate above the minimum by the state laws. This reduces your chances of billing payments out of your own pocket, giving policy holders to handle it all.

  1. Collision Insurance Coverage

Collision Insurance Coverage

This is the name given to an optional form of collision insurance coverage that reimburses you regarding any form of damage that may occur to your vehicle, as a result of collision with some other car or any object.

This does not include coverage for mechanical failure or old age wear and tear.

Related: What is covered under collision insurance?