If you’re moving to Texas, you’re going to need to learn a lot about the Lone Star State. Whether you’re a long time resident or a brand new Texan, you should find out about all the different kinds of insurance available to you. Some types of Texas insurance, like automobile liability insurance, are required by the state; the bank or mortgage company that holds the title to your house might require others, like homeowners insurance. Many kinds of Texas insurance aren’t required, but they’re smart investments in peace of mind.
There Are Three Main Types Of Texas Insurance
First, let’s go over the three major types of Texas insurance:
- Property and Casualty
Each of these sectors of Texas insurance products are made up of many subtypes of insurance policies for different uses.
Property and Casualty – Your auto insurance, business insurance, and home insurance are all forms of property and casualty insurance.
A minimum standard of auto insurance is mandated in order to drive a car in Texas, but most Texas drivers opt for much larger policies that cover more potential losses at very much higher policy limits than the minimum.
Business insurance can cover a wide range of products, some required by the state, others commonly purchased by businesses to reduce risk. Texas insurance for businesses is broken down into the following:
- Worker’s Compensation Insurance
- General Liability Insurance
- Commercial Liability Insurance
- Commercial Auto Insurance
Depending on what type of business you have, all four might be required. Some, like worker’s compensation, are only required if you have employees. Small business owners often purchase a form of Texas insurance called a Business Owner Policy that packages all the coverages required into one easy to understand and affordable policy. Larger businesses move to bigger, standalone policies as they incur greater risk.
Life Insurance – You can purchase two types of life insurance. Term life is a simple form of insurance that pays your estate in the event of your death during the life of the policy. Texas insurance companies also offer Whole Life policies, which are designed to pay death benefits if the policyholder dies prior to maturity of the policy, but also pays cash benefits if the policyholder outlives the term of the policy.
Health – Health insurance protects against the cost of medical care that the policyholder needs. Many employers offer health insurance to their employees as part of their compensation package, although the particular Texas insurance carriers and their terms are often negotiable by the employee. Individuals can also find many Texas insurance companies that offer private market health insurance policies that offer managed care options like Health Maintenance Organizations, Point of Service Plans, or Preferred Provider Organizations.
In addition to these options, both the federal and the Texas state government offer qualifying citizens health insurance coverage at no or reduced costs. Medicaid covers people whose income is too low to afford private insurance. Medicare covers people over the age of 65, as well as some disabled persons. SCHIP gives health insurance coverage to children whose parents don’t qualify for other free or subsidized insurance. There are also plans for former members of the military, and others.