Consumer Protection
Finding the Best Value for Your Insurance Dollar
TDI's Auto Insurance Price Comparisons and Home Insurance Price Comparisons help people shop for insurance and show annual price estimates submitted to TDI by the companies listed. Both auto and homeowners price comparisons show estimates for the type of policy a company is "most likely" to sell to new customers.
Along with price estimates, the guides provide contact information for each company listed, an AM Best financial rating, a complaint index, and shopping tips. The online price comparisons also include information on discounts offered.
Note: The price comparisons show annual price estimates submitted to the Texas Department of Insurance (TDI) by the companies listed, and represent typical coverages for hypothetical profiles. The price information cannot be used to compare insurance rates between companies over time.
Consumer Tip of the Day
If you are on Medicare, Medicare supplement insurance will help pay for some of your out-of-pocket expenses that Medicare alone does not cover. Medicare supplement insurance is a good idea, but not everyone needs it. You may not need Medicare supplement insurance if you have group health insurance through an employer or former employer, your belong to a Medicare+Choice plan (such as a Medicare health maintenance organization or a private fee-for-service plan), or you receive Medicaid or are a Qualified Medicare Beneficiary (QMB). For more information, view our Medicare Supplement Insurance Handbook and Rate Guide.
This free script provided by JavaScript Kit
If you are on Medicare, Medicare supplement insurance will help pay for some of your out-of-pocket expenses that Medicare alone does not cover. Medicare supplement insurance is a good idea, but not everyone needs it. You may not need Medicare supplement insurance if you have group health insurance through an employer or former employer, your belong to a Medicare+Choice plan (such as a Medicare health maintenance organization or a private fee-for-service plan), or you receive Medicaid or are a Qualified Medicare Beneficiary (QMB). For more information, view our Medicare Supplement Insurance Handbook and Rate Guide.
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Highlights
Various Resources
- Federal Health Care Reform Resource Page
- American Recovery and Reinvestment Act Resource Page
- Race-based Pricing Web Resource Page
- Data Calls and Surveys
- Consumers in the Houston and Galveston should be wary of deceptive advertisements from companies using names similar to that of the Texas Department of Insurance (TDI). TDI on April 3, 2009, issued a cease and desist order against Randy Barber and various unauthorized entities after they distributed advertisements giving the false impression that they are affiliated with TDI. Read the information sheet for more details.
Company Resource Pages
- Title Agencies in Receivership Resource Page
- Texas Memorial Life Insurance Company
- W.I.N. Association Resource Page
- AIG Resource Page
- Capitol County Mutual Fire Insurance Company Resource Page
- Brooke Corporation Resource Page
- United Title of Texas Resource Page
- Memorial Service Life and Lincoln Memorial Life
Resource Page
- If My Insurance Company Fails - Find out what will happen to your policy or benefits if your insurance company becomes insolvent. Learn who pays claims, the maximum amounts payable, how you can receive unearned premium refunds, and how to shop for new coverage.
Shopping for Insurance / File A Complaint
- Mediation for Out-of-Network Hospital-based Health Care Provider Claims
- Shopping for Insurance Resource Page
- Identity Theft and Credit Scoring: What You Should Know
- Need a list of insurance companies of interest to consumers? - Lists includes major Texas insurance companies based on policy premiums (homeowners, auto, workers´ compensation, accident and health, HMO, life and annuities)
- Each year TDI helps consumers with more than 30,000 complaints. Because of
TD's efforts, consumers received $48 million more in claims and refunds last
year.
File a Complaint Online | Complaint Help - TDI Complaint Stakeholders Resource Page
Consumer Alerts
- Forced Placed Coverage
- Car Buyers Urged to Beware of Flood-damaged Vehicles
- Seniors Urged to be Careful with Personal Information | (En Español)
- Protect Yourself Against Medicare Advantage Fraud | (En Español) | (Chinese) | (Vietnamese) | (Korean)
- Stranger-Owned Life Insurance: Zero Premium Life Insurance and New Issue Settlements
Disaster-Related Resource Pages
- Deepwater Horizon Oil Spill Resource Page
- Hurricane Alex Resource Page
- H1N1 Flu Resource Page (En Español)
- Wildfire Resource Page
- Thunderstorm, Wind and Hail Insurance Resource Page
- Flood Resource Page
- Home Inventory Checklist (PDF) | (RTF) (En Español)
- Business Interruption Coverage | Word | PDF
Health Care-Related Resource Pages
- Long-Term Care Resource Page
- Discount Health Care Programs Resource Page
- Consumer Guide to Health Care Billing
- Workers' Compensation Health Care Networks for Injured Employees
- Medicare Prescription Drug Coverage (Medicare Part D)
- Companies Marketing Life Insurance
- HR Trust Resource Page
- Chiropractors Resource Page
- Unauthorized Insurance Plans
- Advertising Workgroup Resource Page
| Help For | Toll-Free # |
|---|---|
| Consumers | 800-252-3439 |
| Injured Workers | 800-252-7031 |
| Reporting Arson | 877-434-7345 |
| Reporting Fraud | 800-252-3439 |
| Safety Violations | 800-452-9595 |
| [ tdi phone listings ] | |
| Help For | Link |
|---|---|
| Agents / Adjusters | |
| Filing Complaints | |
| Health Providers | |
| Media / Others | |
| Website Problems | |
| Favorite Links | |
|---|---|
| Agent Lookup | Company Lookup |
| Enforcements | DWC Home |
| DWC Forms | All Other Forms |
| TDI Jobs | TXCOMP Home |
| TDI StormLink | Windstorm |
| [ popular links · more lookups ] | |
For more information contact: ConsumerProtection@tdi.state.tx.us
Last updated: 09/06/2012
Consumer Bills of Rights
Your insurance company is required to provide you with a summary of your rights under Texas insurance law when it issues you a policy. This summary is called the "Consumer Bill of Rights." The Bill of Rights is being revised to reflect the change in the state's minimum liability limits. Until the revised Bill of Rights is adopted, the copy you receive with your new policy will still include the old limits in place prior to April 1.
HTML Versions
- Homeowners | Homeowners-Spanish
- Auto | Auto-Spanish
- Order 05-0306
- Credit Life, Credit Disability and Involuntary Unemployment Insurance (PDF)
PDF Versions
Last updated: 02/22/2012
Auto Insurance
Highlights
UM / UIM - Permissible Offerings under Chapter 1952, Texas Insurance
Code
Price Comparison Rate Guides
- Find out how your insurer compares. Check auto insurance rate comparisons online.
Related Publications
- Take a look at more auto related publications available on our web site.
- Flood Damaged Cars Consumer Alert
- TexasSure - Vehicle Insurance Verification - Read more about the state's new financial responsibility verification program.
- File an Auto Insurance Complaint
- Price Comparisons/Rate Guides
- Auto Complaint Data
- Auto Glossary | Auto Glossary (Spanish)
- Auto / Vehicle Related Publications
- GAP Insurance (Guarantee Auto Protection)
- Certificates of Insurance
- Auto Insurance FAQs
- General FAQs About Insurance
- Brief Look at How Insurance Works
- Insurance Resources for Teens, Young Adults
- Actuarial Corner
- County Mutual Insurance Companies - Standard Rate Index
- Filings Made Easy Guide, November 2011 Edition
- Filing Review Requirements Checklists
- Filing Approvals/Disapprovals
- Advisory Organization Reference Filings - P&C Reference Filings
- SERFF (System of Electronic Rate and Form Filings)
- Personal & Commercial Lines Contact Information
- Requesting P&C Filings / Information
Complaint Information
Helping You With Your Insurance Complaint
- Explains how the Texas Department of Insurance assists Texans with insurance
complaints.
File a Complaint
TDI has a single complaint form for all types of insurance including auto, homeowners, life, health, title, and workers' compensation. Please follow the instructions on the form to provide additional information for certain types of complaints, for example, title, HMO, and workers' compensation claim complaints. Also health care providers should use Attachment A, accessed via a link within the form, to provide additional claim-specific information. To file a complaint in English or Spanish, use the online form at the link below. You may also use the "easy print" option to print out the form then fill in the information and mail or fax your complaint back to TDI.
- English Online Form
- En Español En linea Forma | RTF Format | PDF Format
- Easy Print Form RTF Format | PDF Format
Other Complaint Resources
- Internet Complaint Information System (ICIS) - Provides summaries of complaint database files by quarter and by line of insurance.
- NAIC Consumer Information Source - CIS allows consumers to view a variety information about insurance companies and to file insurance company complaints.
- Insurance Company Profile - Provides company license information, history, financial data, and number of justified complaints filed against the company.
- HMO Profiles - Provides company contacts, service areas, general complaint and financial data, and other company information about HMOs. Information sorted by HMO company name. Also provides definitions for commonly used HMO terminology.
- HMO Complaint Summaries
Complaint Indexes by Calendar Year
Complaint Index 2011- Auto | Home | Accident/Health | Life/Annuity | Workers' Compensation
Complaint Index 2010 - Auto | Home | Accident/Health | Life/Annuity | Workers' Compensation
Complaint Index 2009 - Auto | Home | Accident/Health | Life/Annuity | Workers' Compensation
Complaint Index 2008 - Auto | Home | Accident/Health | Life/Annuity | Workers' Compensation
Complaint Index 2007 - Auto | Home | Accident/Health | Life/Annuity | Workers' Compensation
For more information contact:
ConsumerProtection@tdi.state.tx.us
Last updated: 03/01/2012
ConsumerProtection@tdi.state.tx.us
Last updated: 03/01/2012
Consumer Resources / Issues
- Our Promise - Compact with Texans
- Health Insurance for Children
- HMO Resource Page
- Insurance Resource for Payors
- Insurance Resource for Physicians/Providers | Avoid Claim Filing Errors | Web Site Resources for Physicians and Providers
- Mold Resource Page
- School Districts - Insurance Decisions
- Seniors Resource Page
- Small Business Resource Page
- StormLink - Weather and Storm Information
- Windstorm Insurance / Building Code Resources
For more information contact:
ConsumerProtection@tdi.state.tx.us
Last updated: 06/09/2008
General Information | Price Comparisons and Rate Guides | Auto | Business Owners | Life and Health | Homeowners | Seniors
For more information contact:
For more information contact: ConsumerProtection@tdi.state.tx.us
TDI has a single complaint form for all types of insurance including auto, homeowners, life, health, title, and workers' compensation. Please follow the instructions on the form to provide additional information for certain types of complaints, for example, title, HMO, and workers' compensation claim complaints. Also health care providers should use Attachment A, accessed via a link within the form, to provide additional claim-specific information. To file a complaint in English or Spanish, use the online form at the link below. You may also use the "easy print" option to print out the form then fill in the information and mail or fax your complaint back to TDI. >For information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday.
Internet Complaint Information System
Consumer Complaint Information | HMO Complaint Summaries
TDI Complaint Stakeholders Resource Page
Customer Service Contact
We set high standards for customer service and hope our service meets your expectations. If it does not, we invite you to contact a supervisor or manager in the TDI program area providing that service. The TDI program has the expertise relating to your insurance issue, and it is likely that program staff and management are the ones who can best help you.
Customer Relations Representative
Should you have any comments or suggestions about TDI "Compact with Texans" services and standards, please contact TDI's Customer Relations Representative via e-mail at: CustomerRelations@tdi.state.tx.us
See Also: How Insurance Works | General Insurance FAQ | Auto Insurance FAQ
Insurance provides financial protection from accidents and other unexpected events. Different kinds of policies insure against different "risks," which might include a traffic accident that damages your car, an apartment fire that destroys your personal property, or an illness or injury that requires expensive medical treatment.
In general, the insurance needs of people under age 25 are more limited than people who are older. For instance, you may already have some types of coverage through a parent's or guardian´s policy. However, one type of policy you are almost certain to need is auto insurance.
This page provides information about auto insurance, renters insurance, and health care coverage for younger Texans. In addition, the following Texas Department of Insurance (TDI) resources can help you understand key topics and issues relating to insurance coverage:
Texas law requires all drivers to have auto liability coverage to pay for any property damage and injury to others that results from any accidents they cause. A first offense for driving without insurance can result in a court fine of between $175 and $350. Subsequent offenses can result in court fines up to $1,000, license suspension, and impoundment of your vehicle. In addition, if you are convicted of driving without insurance, you will have to pay an annual surcharge of $250 to the Texas Department of Public Safety (DPS) in order to maintain your Texas drivers license. The surcharge remains in effect for three years, meaning a first offense could ultimately cost you more than $1,000.
Your insurance company will provide you with a card or certificate as "proof of insurance" at the beginning of each policy term. You will be required to show proof of insurance when you
Texas law requires you to have basic minimum liability coverage of $30,000 per injured person, up to a total of $60,000 for everyone hurt in an accident, and $25,000 for property damage. This coverage is typically called "30/60/25" coverage. Keep in mind that basic coverage might not be enough if you are held liable for an accident. For instance, if you cause an accident that results in $35,000 in damage to the other driver´s vehicle, and you have only the basic $30,000 property damage limit, you could be personally responsible for paying the additional $5,000 yourself. For this reason, many drivers increase their coverage limits. Ask your agent about higher liability limits, but remember that the higher your limits, the more your premium, which is the amount you pay for the insurance, will be.
It´s also important to understand that basic liability coverage pays only for the damages and injuries you cause to other people. It won´t pay to repair or replace your car. To have coverage for your vehicle in an accident regardless of who´s at fault, you will need to add "collision" coverage to your policy. You can buy "comprehensive" coverage to pay to repair or replace your car if it´s stolen or damaged by hail, fire, road debris, vandalism, or other similar covered risks. You might also wish to add "Personal Injury Protection," commonly called PIP. PIP will pay for your and your passenger's medical and medically related expenses and will replace some lost wages if you´re unable to work because of an accident. "Uninsured/Underinsured Motorist" (UM/UIM) coverage pays your expenses from an accident caused by an uninsured motorist or if the other driver did not have enough insurance to cover your bills, up to your policy´s dollar limits. UM/UIM also pays for accidents caused by a hit-and-run driver if you reported the accident promptly to the police.
The following TDI resources can help you better understand and shop for auto insurance:
If you live in a rented home or apartment, you may need to buy renter´s insurance to cover your personal property in the event of fire, theft, or other covered loss. Your landlord´s insurance won´t pay to repair or replace your property.
Typically, renters insurance costs $30 or less per month, although you should expect to pay more if you have a lot of expensive items. An "actual cash value" renters policy will pay for a property loss in the amount of the resale value of the item at the time the loss occurred. In other words, if your two-year-old computer is damaged by water from a broken pipe, the policy will only reimburse you for the value of a two-year-old computer -- not a new one. However a "replacement value policy" will reimburse you for the amount needed to purchase a new item of like kind and quality to the one that you need to replace. Replacement value policies cost more than actual cash value policies because they pay more for the losses you incur.
Renters insurance essentially covers everything a homeowners policy does, except for the value of the rented structure. Many renters policies will pay for the cost of a place for you to stay temporarily if the damage to your property makes your home uninhabitable. A renters policy also protects you from legal liability in the event that someone has an accident and is injured on your property. In addition, many renters policies even cover property losses that occur off the rented premises, up to a certain limit, such as lost luggage or a stolen camera on vacation.
If you´re away at school, your personal property may be covered by your parent's or guardian´s homeowners policy and you don´t need a separate renters policy. Make sure your parents review their policy carefully to determine whether your property is covered while you´re living away from home and what the limit of the coverage is. It´s a good idea for them to check with their insurance agent to verify the coverage.
The following TDI resources offer more in-depth information relating to renters insurance:
Health care coverage pays for the cost of medical services as a result of illness or injury. Younger people often forgo health insurance because they´re in good health and expect to be so for a long time. However, although it is true that younger individuals are less likely to have a serious illness, it can occur. Moreover, a serious physical injury as a result of an accident can happen to anybody at any time.
If your parents have health care coverage and you still depend on them for financial support, more than likely you will also be covered under their policy. Dependent children may remain enrolled in a parent´s health plan up to age 25. If your parents are without health coverage, you should consider obtaining a policy of your own. Because younger people can generally be expected to remain in good health, health coverage generally costs significantly less for them than for people who are older. If you´re a college student, find out whether your institution offers a student health plan. The majority of larger colleges and universities offer some type of affordable health coverage.
In some cases, colleges may require you to have health care coverage as a condition of enrollment.
Health care coverage can be an extremely complex topic. In general, however, if you´re purchasing an individual policy directly from an insurer, shop around with multiple companies for the best available coverage at the best price. Always read a policy before purchase, and carefully consider whether it meets your health care needs.
The following TDI resources can help you better understand how health coverage works and help you find a policy that's right for you:
ConsumerProtection@tdi.state.tx.us
Last updated: 06/09/2008
Publications for Consumers
Publications and Brochures
This is one of several pages linking to a central website of publications of interest to TDI customers. Use the links to publications by programs on the Publications Home Page or use the page links to scan through our publications listings.General Information | Price Comparisons and Rate Guides | Auto | Business Owners | Life and Health | Homeowners | Seniors
| TDI Number | File Format | File Size | |
|---|---|---|---|
| Automobile Insurance Sample Rate Comparisons | html | 0 kb | |
| Homeowners Insurance Sample Rate Comparisons | html | 0 kb | |
| Long-Term Care Insurance Rate Guide (Long-term care insurance company rate increase histories) | lrg | html | 25 kb |
| Medicare Supplement Insurance Handbook and Rate Guide (PDF version) | cb014 | html and pdf | 37 kb |
| Small Employer Health Benefit Plan Rate Guide | srg | html | 39 kb |
| Workers' Compensation Rate Guide | wrg | html | 8 kb |
| En Español | |||
| Comparaciones del precios de seguro de automóvil (Para ver esta información en Español, seleccione la lengüeta que indica "En Español.") | html | 0 kb | |
| Comparaciones de precios de seguros para propietario de vivienda (Para ver esta información en Español, seleccione la lengüeta que indica "En Español.") | html | 0 kb | |
| Manual y guía de precios de los seguros suplementarios a Medicare | cb014s | html | 56 kb |
| TDI Number | File Format | File Size | |
|---|---|---|---|
| Automobile Insurance Made Easy | cb020 | html | 53 kb |
| Automobile Insurance Sample Rate Comparisons | html | 0 kb | |
| Glossary of Common Auto Insurance Terms | html | 13 kb | |
| You Could Save $100 in a Hour | cb060 | html | 7 kb |
| Texas Financial Responsibility Law: Minimum Auto Liability Insurance Limits Have Increased | cb088 | html | 11 kb |
| En Español | |||
| Haciendo fácil la compra del seguro de automóvil | cb020s | html | 63 kb |
| Comparaciones del precios de seguro de automóvil (Para ver esta información en Español, seleccione la lengüeta que indica "En Español.") | html | 0 kb | |
| Glosario de terminología de seguros de automóvil | html | 16 kb | |
| Usted podría ahorrar 100 en una hora | cb060s | html | 7 kb |
| Ley de responsabilidad financiera para los conductores de Texas | cb088s | html | 15 kb |
| TDI Number | File Format | File Size | |
|---|---|---|---|
| Commercial Property Insurance | cb021 | html | 39 kb |
| Small Employers Health Insurance | cb040 | html | 26 kb |
| Small Employer Health Benefit Plan Rate Guide | html | 39 kb | |
| Workers' Compensation Insurance | cb030 | html | 28 kb |
| Workers' Compensation Rate Guide | html | 8 kb | |
| Information for Workers' Compensation Nonsubscribers | cb007 | html | |
| Healthy Texas | cb092 | 2 kb |
| TDI Number | File Format | File Size | |
|---|---|---|---|
| HICAP: Health Information Counseling & Advocacy Program | cb045 | html | 27 kb |
| A Shopper's Guide to Long-Term Care Insurance (PDF version) | cb032 | html and pdf | 48 kb |
| Long-Term Care Insurance Rate Guide (Long-term care insurance company rate increase histories) |
LRG01 | html | 25 kb |
| Medicare Advantage Plans | cb036 | html | 30 kb |
| Medicare Supplement Insurance Handbook and Rate Guide (PDF version) | cb014 | html and pdf | 37 kb |
| En Español | |||
| El HICAP ayuda a las personas en Medicare | cb045s | html | 8 kb |
| Guía para la compra de seguro de cuidado a largo plazo | cb032s | html | 82 kb |
| Los planes Medicare Advantage | cb036s | html | 51kb |
| Manual y guía de precios de los seguros suplementarios a Medicare | cb014s | html | 55 kb |
Disaster Preparedness Resource Pages (StormLink)
TDI's Disaster Preparedness Resource Pages combine information about current weather conditions, disaster-specific tips, and agency resources to help consumers prepare for various types of disasters. Planning ahead can help you protect yourself, your family, and your property during a disaster.Highlights
Current Information
Disaster Resource Pages
Select a type of disaster for insurance tips and other resources:
Select a type of disaster for insurance tips and other resources:
| Help For | Toll-Free # |
|---|---|
| Consumers | 800-252-3439 |
| Injured Workers | 800-252-7031 |
| Reporting Arson | 877-434-7345 |
| Reporting Fraud | 800-252-3439 |
| Safety Violations | 800-452-9595 |
| [ tdi phone listings ] | |
| Help For | Link |
|---|---|
| Agents / Adjusters | |
| Filing Complaints | |
| Health Providers | |
| Media / Others | |
| Website Problems | |
| Favorite Links | |
|---|---|
| Agent Lookup | Company Lookup |
| Enforcements | DWC Home |
| DWC Forms | All Other Forms |
| TDI Jobs | TXCOMP Home |
| TDI StormLink | Windstorm |
| [ popular links · more lookups ] | |
For more information contact: ConsumerProtection@tdi.state.tx.us
TDI Insurance Complaint Form
TDI has a single complaint form for all types of insurance including auto, homeowners, life, health, title, and workers' compensation. Please follow the instructions on the form to provide additional information for certain types of complaints, for example, title, HMO, and workers' compensation claim complaints. Also health care providers should use Attachment A, accessed via a link within the form, to provide additional claim-specific information. To file a complaint in English or Spanish, use the online form at the link below. You may also use the "easy print" option to print out the form then fill in the information and mail or fax your complaint back to TDI. >For information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday.
1-800-252-3439
463-6515 in Austin
- English Online Form
- En Español En linea Forma | RTF Format | PDF Format
- Easy Print Form RTF Format | PDF Format
Internet Complaint Information System
Consumer Complaint Information | HMO Complaint Summaries
TDI Complaint Stakeholders Resource Page
Other Complaints
Customer Service Contact
We set high standards for customer service and hope our service meets your expectations. If it does not, we invite you to contact a supervisor or manager in the TDI program area providing that service. The TDI program has the expertise relating to your insurance issue, and it is likely that program staff and management are the ones who can best help you.
Customer Relations Representative
Should you have any comments or suggestions about TDI "Compact with Texans" services and standards, please contact TDI's Customer Relations Representative via e-mail at: CustomerRelations@tdi.state.tx.us
Insurance Resource Page for Texas Teens and Young Adults
See Also: How Insurance Works | General Insurance FAQ | Auto Insurance FAQ
Insurance provides financial protection from accidents and other unexpected events. Different kinds of policies insure against different "risks," which might include a traffic accident that damages your car, an apartment fire that destroys your personal property, or an illness or injury that requires expensive medical treatment.
In general, the insurance needs of people under age 25 are more limited than people who are older. For instance, you may already have some types of coverage through a parent's or guardian´s policy. However, one type of policy you are almost certain to need is auto insurance.
This page provides information about auto insurance, renters insurance, and health care coverage for younger Texans. In addition, the following Texas Department of Insurance (TDI) resources can help you understand key topics and issues relating to insurance coverage:
- How Insurance Works explains the basic terms and key concepts that are common to all types of insurance
- Frequently Asked Questions answers a number of questions that teens and young adults generally have regarding insurance
- Glossary of Insurance Terms provides definitions for common insurance terms
- Shopping Smart provides information to help you shop for the insurance you need
- Helping You With Your Insurance Complaint explains what you need to do if you have a problem with your insurance company and what TDI can do to help.
- TDI Working For You provides an overview of TDI and helpful contact information.
Auto Insurance
Texas law requires all drivers to have auto liability coverage to pay for any property damage and injury to others that results from any accidents they cause. A first offense for driving without insurance can result in a court fine of between $175 and $350. Subsequent offenses can result in court fines up to $1,000, license suspension, and impoundment of your vehicle. In addition, if you are convicted of driving without insurance, you will have to pay an annual surcharge of $250 to the Texas Department of Public Safety (DPS) in order to maintain your Texas drivers license. The surcharge remains in effect for three years, meaning a first offense could ultimately cost you more than $1,000.
Your insurance company will provide you with a card or certificate as "proof of insurance" at the beginning of each policy term. You will be required to show proof of insurance when you
- Are asked for it by a police officer or other law enforcement official.
- Have an accident.
- Register the title to your car or renew its registration.
- Obtain or renew your driver´s license.
- Have your vehicle inspected during an annual required state safety inspection.
Texas law requires you to have basic minimum liability coverage of $30,000 per injured person, up to a total of $60,000 for everyone hurt in an accident, and $25,000 for property damage. This coverage is typically called "30/60/25" coverage. Keep in mind that basic coverage might not be enough if you are held liable for an accident. For instance, if you cause an accident that results in $35,000 in damage to the other driver´s vehicle, and you have only the basic $30,000 property damage limit, you could be personally responsible for paying the additional $5,000 yourself. For this reason, many drivers increase their coverage limits. Ask your agent about higher liability limits, but remember that the higher your limits, the more your premium, which is the amount you pay for the insurance, will be.
It´s also important to understand that basic liability coverage pays only for the damages and injuries you cause to other people. It won´t pay to repair or replace your car. To have coverage for your vehicle in an accident regardless of who´s at fault, you will need to add "collision" coverage to your policy. You can buy "comprehensive" coverage to pay to repair or replace your car if it´s stolen or damaged by hail, fire, road debris, vandalism, or other similar covered risks. You might also wish to add "Personal Injury Protection," commonly called PIP. PIP will pay for your and your passenger's medical and medically related expenses and will replace some lost wages if you´re unable to work because of an accident. "Uninsured/Underinsured Motorist" (UM/UIM) coverage pays your expenses from an accident caused by an uninsured motorist or if the other driver did not have enough insurance to cover your bills, up to your policy´s dollar limits. UM/UIM also pays for accidents caused by a hit-and-run driver if you reported the accident promptly to the police.
The following TDI resources can help you better understand and shop for auto insurance:
- Auto Insurance FAQ for young Texas drivers.
- Automobile Insurance Made Easy is TDI´s consumer publication that covers a wide range of auto-insurance-related topics.
- Automobile Insurance Price Comparisons provides price quotes and contact information from most Texas insurers, including quotes for drivers under 25.
Renters Insurance
If you live in a rented home or apartment, you may need to buy renter´s insurance to cover your personal property in the event of fire, theft, or other covered loss. Your landlord´s insurance won´t pay to repair or replace your property.
Typically, renters insurance costs $30 or less per month, although you should expect to pay more if you have a lot of expensive items. An "actual cash value" renters policy will pay for a property loss in the amount of the resale value of the item at the time the loss occurred. In other words, if your two-year-old computer is damaged by water from a broken pipe, the policy will only reimburse you for the value of a two-year-old computer -- not a new one. However a "replacement value policy" will reimburse you for the amount needed to purchase a new item of like kind and quality to the one that you need to replace. Replacement value policies cost more than actual cash value policies because they pay more for the losses you incur.
Renters insurance essentially covers everything a homeowners policy does, except for the value of the rented structure. Many renters policies will pay for the cost of a place for you to stay temporarily if the damage to your property makes your home uninhabitable. A renters policy also protects you from legal liability in the event that someone has an accident and is injured on your property. In addition, many renters policies even cover property losses that occur off the rented premises, up to a certain limit, such as lost luggage or a stolen camera on vacation.
If you´re away at school, your personal property may be covered by your parent's or guardian´s homeowners policy and you don´t need a separate renters policy. Make sure your parents review their policy carefully to determine whether your property is covered while you´re living away from home and what the limit of the coverage is. It´s a good idea for them to check with their insurance agent to verify the coverage.
The following TDI resources offer more in-depth information relating to renters insurance:
- Renters Insurance provides general information on renters insurance.
Health Care Coverage
Health care coverage pays for the cost of medical services as a result of illness or injury. Younger people often forgo health insurance because they´re in good health and expect to be so for a long time. However, although it is true that younger individuals are less likely to have a serious illness, it can occur. Moreover, a serious physical injury as a result of an accident can happen to anybody at any time.
If your parents have health care coverage and you still depend on them for financial support, more than likely you will also be covered under their policy. Dependent children may remain enrolled in a parent´s health plan up to age 25. If your parents are without health coverage, you should consider obtaining a policy of your own. Because younger people can generally be expected to remain in good health, health coverage generally costs significantly less for them than for people who are older. If you´re a college student, find out whether your institution offers a student health plan. The majority of larger colleges and universities offer some type of affordable health coverage.
In some cases, colleges may require you to have health care coverage as a condition of enrollment.
Health care coverage can be an extremely complex topic. In general, however, if you´re purchasing an individual policy directly from an insurer, shop around with multiple companies for the best available coverage at the best price. Always read a policy before purchase, and carefully consider whether it meets your health care needs.
The following TDI resources can help you better understand how health coverage works and help you find a policy that's right for you:
- TexasHealthOptions.com is a web site administered by TDI that provides a step-by-step approach to finding health coverage. There´s a page devoted specifically for college students.
- Your Health Care Coverage explains the many aspects of health care coverage in detail, including the differences between managed care and indemnity coverage and group and individual health plans.
- Health Maintenance Organizations provides detailed information about Health Maintenance Organizations (HMOs), which utilize special networks of hospitals, physicians, and service providers.
