Are Comprehensive and Collision Required Auto Insurance Coverages?

You already know that you need liability to stay legal on the roads of Sugar Land, TX. But what about other auto insurance coverage? Our team at Insurance Solutions of Texas has created a guide to help you learn more about comprehensive and collision insurance.

Are Comprehensive and Collision Required on Your Auto Policy?

The short answer to this is no. Comprehensive and collision are considered first-party insurance, which means they pay to fix your vehicle in the event of a collision, no matter who is considered at-fault.

The State of Texas requires you to carry liability insurance. This is a third-party coverage that pays for the other person’s medical bills and property damage if you’re deemed the one who caused an accident. Thus, it is not legally required to have comp and collision on your Texas auto insurance policy.

You Might Still Be Required to Carry It By Your Lender

While the government doesn’t care if you have coverage for damage to your own vehicle, your lender probably does. Most have a clause in their contract with you that states you’re required to carry it on your auto insurance policy. Why? If you get into an accident and the vehicle is totaled, they want to make sure they can still get money out of their investment.

If you have a loan or lease on your vehicle, you’ll likely need to purchase comprehensive and collision insurance. Failure to do so could mean force-placed insurance, which gets added to your monthly car payment and often costs more than just adding it to your normal auto insurance policy.

Ready to learn more about how a policy from Insurance Solutions of Texas can help keep you legal while out on the road? Please contact us today to schedule a Sugar Land, TX auto insurance evaluation.