Tips for Texans Purchasing - Auto, Homeowners, and Renters Insurance - Shopping Guide

Sep 3, 2026

Upload by James

Guidance for Texans comparing and choosing auto, homeowners, and renters insurance. Covers the importance of reviewing the Texas Consumer Bill of Rights and matching coverage to real needs, including how deductibles and collision/comprehensive choices affect premiums. Explains common auto coverages and homeowners policy types, and highlights replacement cost considerations. For renters, describes standard policy forms and potential overlap with other coverage. Includes discount questions and alternatives for hard-to-insure consumers, plus references for additional help.

LanguageEnglish

CategoryForms

FormatPDF

Pages2

Reading Time1 min

AccessFree to download

Tips for Texans Purchasing

Shopping for an Insurance Policy

Auto Insurance

Homeowners Insurance

Renters Insurance

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| INFORMATION FOR CLIENTS OF TEXAS ATTORNEYS
The information included on this page is for educational and informational purposes only.
Please consult an attorney regarding specific legal questions.
Tips for Texans Purchasing
Auto, Homeowners, and Renters Insurance | | | --- | --- | | Shopping for an insurance policy is similar to shopping for any major item. It’s best to compare companies and products to find the best price, quality, and customer service.
All auto and homeowners policies in Texas must include a Consumer Bill of Rights, which explains your legal rights and responsibilities. Read it carefully. You can also view the Consumer Bills of Rights for both types of policies on the Office of Public Insurance Counsel (OPIC) website [at](at www.opic.state.tx.us)[ www.opic.state.tx.us](at www.opic.state.tx.us).
Auto Insurance
If you drive in Texas, you must be able to pay for accidents you cause. Most Texas drivers buy auto liability insurance to meet this requirement. There are eight types of coverage in a typical auto policy: liability insurance, collision coverage, comprehensive coverage (physical damage other than collision), uninsured/underinsured motorist (UM/UIM), medical payments, personal injury protection (PIP), towing and labor coverage, and rental reimbursement coverage.
Make sure your coverage fits your needs. Don’t buy more coverage than you need. Compare the cost of your annual premium against your car’s Blue Book value, minus your deductible. If you’re paying more in premiums than it would cost to replace your car, consider dropping collision and comprehensive coverage. If you still owe money on your car, however, your lender will require you to maintain full coverage.
You may be able to drop some coverages and lower your premium. You may not need PIP and medical payments coverage if you have health and disability |

insurance. Remember, though, that PIP and medical payments also cover other people if they are injured while in your car. If you belong to an automobile club, you may already have towing and labor coverage and don’t need it in your policy.
Homeowners Insurance
Insurance companies may sell several types of homeowners policies in Texas, each with a different level of coverage:

HO-A policies, HO-A amended policies, HO-B policies, HO-C policies, and approved alternative policies. For a comparison of the policy forms approved for sale in Texas, visit the OPIC website.
Be sure to maintain adequate coverage. Buy enough coverage to avoid a major financial loss if your home is severely damaged or destroyed. This means keeping a realistic dollar amount of coverage on your house. | | You should also consider insuring your home’s replacement cost, not its market value. The market value may be higher or lower than the cost to rebuild your home. If you have replacement cost coverage and your house is destroyed, you can rebuild your home on the same lot at current local construction costs. Construction costs change, so you should update your coverage amounts annually.
When purchasing homeowners insurance, choose the highest deductible you can afford. Your deductible is the amount you must pay before the insurance company will pay. Higher deductibles will lower your premium, but you’ll have to pay more out of your own pocket if you have a claim.
Renters Insurance
Your landlord’s insurance will not cover your personal belongings in the event of a fire or theft. Renters insurance covers stolen, damaged, or destroyed household goods and personal property and also provides liability coverage.
There are two standard renters insurance policies: the Broad Form (HO-BT) and the Comprehensive Form (HO-CT) .
Renters insurance may duplicate other coverage. For instance, if you are still a dependent, your personal property maybe covered by your parents’ homeowners policy. This coverage is limited, however, to an amount equal to 10 percent of the tota

FAQs

What should Texans compare when shopping for insurance policies?

Compare companies and products to find the best combination of price, quality, and customer service. Reviewing coverage details helps ensure the policy fits your needs.

What are the key coverage types in a typical Texas auto policy?

A typical auto policy includes liability, collision, comprehensive, uninsured/underinsured motorist (UM/UIM), medical payments, personal injury protection (PIP), towing and labor, and rental reimbursement.

How does homeowners insurance replacement cost differ from market value coverage?

Replacement cost coverage lets you rebuild on the same lot using current local construction costs if your home is destroyed. Market value may be higher or lower than rebuild cost.

Sep 3, 2026

Upload by James