Is there a federal law mandating auto insurance

19 Jan

What it pays: If the insurance company decides your car can be fixed, it will pay you the cost of repairs.

If the company totals your car, it will pay you the actual cash value of your car.

Liability insurance pays to repair or replace the other driver's car and pays other people's medical expenses when you’re at fault in an accident.

If you buy insurance to meet the state's financial responsibility law, you must buy at least the minimum amount.

If you still owe money on your car, your lender will require you to have comprehensive coverage.

What it pays: Similar to medical payments coverage, plus 80 percent of lost income and the cost of hiring a caregiver for an injured person.Companies may sell other policies that the Texas Department of Insurance (TDI) has approved. The following summary can help you understand the eight basic auto coverages (please note that your coverages may be different, depending on the type of policy you buy).What it pays: The following expenses, up to your policy's dollar limits, for the people in the other car involved in an accident that you or someone covered by your policy caused: Liability insurance also pays your defense costs, including attorney fees if someone sues you because of the accident.Who it covers: You, your family members, and passengers in your car, and other injured people, regardless of who caused the accident.Your insurance company will automatically give you PIP coverage, but you may reject it in writing if you don’t want it.