The state of Texas considers mandatory for all drivers to own auto liability insurance, basic coverage is what is called 25/50/25, meaning that your minimum coverage per person for bodily injuries or death needs to be of $25,000, up to a total per accident of $50,000 and $25,000 are destined to pay for property damage.

Liability Insurance will pay for damages and medical expenses of others involved in the accident, not you. This is why owning PIP (Personal Injury Protection) or any other type of insurance that will take care of you and yours is highly recommended. By owning the right amount of liability insurance you can prevent from having to deal with lawsuits or any other type of financial predicament related to your responsibility.

Drivers must carry with them at all times proof of financial responsibility. You may be requested to show this proof by any law enforcement officer, if you are involved in an accident, at the time of registration or driver's license renewal.

If fail to demonstrate owning financial responsibility you can be fined between $175 and $350 for a first offense. Following offenses can have fines of $350 to $1,000 and driver's license suspension along with your vehicle being impounded.

Insurer provides you with an Insurance ID card; this can be used as financial proof and should be carried inside of the vehicle at all times.

Other types of coverage available include Comprehensive, Collision, PIP, Uninsured and Underinsured Motorist. Comprehensive coverage will take care of expenses related to none collision caused damages to your vehicle, such as bad weather, vandalism, fire, falling objects, etc. It is highly recommended for those states in which weather plays an important role and usually hits hard on the inhabitants. Comprehensive coverage will not pay for medical or legal expenses.

Collision coverage will pay for the cost of repairing your vehicle after it has been in a collision, regardless the severity of the accident, it will help fix those physical damages it may have suffered. Note that this coverage as well as comprehensive will not pay for any medical expenses.

PIP (Personal Injury Protection) will pay for medical expenses and the costs of funerals (in the worst case scenario) resulting from an accident. It'll also pay up to 80% of lost income and the cost of a caregiver for any injured person. PIP will cover you, your family members, and any other passenger inside your vehicle no matter who was responsible for the accident.

Uninsured / Underinsured Motorist coverage helps to pay when you are involved in an accident with a driver whose policy either isn't enough to cover for expenses or your medical bills are too high and when the driver isn't even insured. This can also be used on hit and run situations. A positive thing about uninsured / underinsured motorist is that your insurer will pay you quicker. This also enables the insurance company to seek reimbursement from the person responsible for the accident.