Lines of InsuranceLines of Insurance

What They Are and Why They Are What They Are and Why They Are ImportantImportant

Created by The Texas Department of Insurance

Major Lines of Major Lines of PersonalPersonal InsuranceInsurance

Auto Health Life Homeowners

Auto InsuranceAuto Insurance If you drive a car in Texas, you must have the If you drive a car in Texas, you must have the

legal minimum amount of auto liability insurance.legal minimum amount of auto liability insurance.

By law, you must have at least auto liability By law, you must have at least auto liability insurance.insurance.

Liability Liability means obligation. If you are in an means obligation. If you are in an accident, accident, liability liability insurance will pay for injured insurance will pay for injured parties and properties. parties and properties.

It will NOT cover your injuries! You will need to It will NOT cover your injuries! You will need to buy more insurance than the legal minimum to buy more insurance than the legal minimum to cover (insure) yourself and your property.cover (insure) yourself and your property.

Auto InsuranceAuto 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 InsuranceAuto 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 InsuranceHealth 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 InsuranceHealth 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 InsuranceLife 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 InsuranceHomeowners 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 InsuranceHomeowners 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 Other Lines of Insurance

Pet

Commercial (coverage for Businesses)

Title (for real estate)

Jewelry

Boat

Remember!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!