Lines of Insurance What They Are and Why They Are Important Created by The Texas Department of Insurance
Major Lines of PersonalInsurance • Auto • Health • Life • Homeowners
Auto Insurance • If you drive a car in Texas, you must have the legal minimum amount of auto liability insurance. • By law, you must have at least auto liability insurance. • Liability means obligation. If you are in an accident, liability insurance will pay for injured parties and properties. • It will NOT cover your injuries! You will need to buy more insurance than the legal minimum to cover (insure) yourself and your property.
Auto Insurance • Auto insurance is mandatory in Texas. You will have to show proof of current insurance when you: • Get pulled over by the police. • Get your car inspected. • Renew your drivers license. • Apply for or renew the registration for your car.
Auto Insurance • Texas has a statewide database called TexasSure. • If you are pulled over, a police officer can easily check to see if you have valid insurance for your car. If you are caught without insurance, you can be fined hundreds of dollars and possibly lose your license. • Bottom line: If you drive, you must have car insurance!
Health Insurance • Health insurance is important because you never know when you might get sick or injured! Even minor injuries or illnesses can cost thousands of dollars to treat. • Many plans will allow you to remain on your parent’s plan until you reach the age of 25 (so long as your parents choose to keep you on the plan). • If you go to college or start working, it is a good idea to have health insurance.
Health Insurance • If you are not on your parent’s plan, you may be able to get health insurance from: • Your college (many offer student health insurance plans) • Your employer (many employers offer their employees health insurance plans) • Organizations (some organizations offer group health insurance plans) • Private carriers (remember to shop around to get the best price possible)
Life Insurance • Life insurance helps make sure a family has enough money if a primary wage earner dies. • It is important to have life insurance if you have family members or other people who depend on you for money. • When you buy life insurance, you decide who your beneficiaries will be. • Beneficiaries are the people the insurance money will go to when the person covered by the policy dies.
Homeowners Insurance • When you buy a house, keep in mind that insurance is an expense in buying that house. Your lender will require that you have homeowners insurance. • Homeowners insurance won’t cover everything. • You will need to evaluate your situation and decide if you need additional coverage, such as flood insurance, windstorm insurance, earthquake insurance, etc.
Homeowners Insurance • Homeowners insurance also covers your personal property, such as furniture and clothing, and will pay for injuries to other people that occur at your house. • The amount of coverage depends on your policy, so make sure to buy the coverage you want and need! • If you rent instead of own your home, you will want to get renters insurance. Renters insurance covers your personal property if your rented home is damaged or if you property is stolen.
Other Lines of Insurance • Pet • Commercial (coverage for Businesses) • Title (for real estate) • Jewelry • Boat
Remember! • Companies charge different rates, even for similar coverages. It pays to shop around! • Having insurance does not get you off the hook! You may still be liable (responsible) for paying for damage or replacements. • Insurance costs money and requires financial responsibility!