Texas Department of Insurance

What this document is

Texas Department of Insurance - Auto insurance guide (consumer guide CB020: liability, personal injury protection, uninsured/underinsured motorist, collision, comprehensive, cancellation and nonrenewal) is a reference published by Texas Department of Insurance (www.tdi.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas property & casualty, texas personal lines, texas claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Texas Department of Insurance, Auto insurance guide (CB020), Types of auto coverages (personal injury protection)

  “Personal injury protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers’ medical bills. But it also pays for things like lost wages and other nonmedical costs. All auto policies in Texas include PIP coverage. If you don’t want it, you must tell the company in writing.”

• Texas Department of Insurance, Auto insurance guide (CB020), Deductibles and dollar limits

  “You must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims. A deductible is the amount of a claim that you must pay yourself.”

• Texas Department of Insurance, Auto insurance guide (CB020), Understanding premiums (Your rights)

  “Turn you down or charge you more only because of your credit score.”

• Texas Department of Insurance, Auto insurance guide (CB020), Losing your insurance (Nonrenewal)

  “A company can nonrenew your policy only after it’s been in effect for 12 months. This means that if you bought a six-month policy, the company can’t refuse to renew it when the first six months ends. It must renew it to give you a full 12 months of coverage.”

• Texas Department of Insurance, Auto insurance guide (CB020), Auto claims (After I file my claim, what happens?)

  “The prompt payment law doesn’t apply if another driver’s insurance company is paying the claim. But the company must act in good faith and try to settle your claim quickly and fairly.”

• Texas Department of Insurance, Auto insurance guide (CB020), Settling claims (What if the insurance company totals my car?)

  “If the company totals your car, it will pay your car’s value minus depreciation. Depreciation is a decrease in value because of wear and tear or age.”

• Texas Department of Insurance, Auto insurance guide (CB020), Auto claims

  “Your uninsured motorist coverage won’t pay for a hit-and-run accident if you didn’t report it to police.”

• Texas Department of Insurance, Auto insurance guide (web page last updated 12/11/2025), Types of auto coverages

  “The minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver’s car is totaled. If you don’t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket. The other driver could sue you.”

• Texas Department of Insurance, Auto insurance guide (web page last updated 12/11/2025), Losing your insurance

  “A company may cancel your policy in the first 60 days for any reason, unless the cancellation violates a law.”

• Texas Department of Insurance, Auto insurance guide (web page last updated 12/11/2025), Auto claims

  “Tell your company about the accident as soon as possible. Most companies have deadlines for filing claims. Your insurance card should have a number you can call to report claims.”

• Texas Department of Insurance, Auto insurance guide (web page last updated 12/11/2025), Is auto insurance required?

  “Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car, or other damaged property, and pays other people’s medical expenses when you’re at fault in an accident.”

• Texas Department of Insurance, Auto insurance guide (web page last updated 12/11/2025), Who's covered?

  “Most policies cover you, your family, and people driving your car with your permission. Ask your agent or read your policy to know who your policy covers and if anyone is excluded from coverage.”

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More Texas sources

• Texas Government Code ch. 2001 -- Administrative Procedure Act, complete (Secs. 2001.001-2001.903)State statute
• Texas Government Code Chapter 2253, Public Work Performance and Payment Bonds, complete: Subchapters A-D, Secs. 2253.001-2253.079State statute
• Tex. Ins. Code ch. 541: Unfair methods of competition and unfair or deceptive acts or practicesState statute
• Tex. Ins. Code ch. 1101: Life insurance required and prohibited policy provisionsState statute
• Tex. Ins. Code ch. 4001: Agent licensing in generalState statute
• Tex. Ins. Code ch. 4005: Conduct, disciplinary actions, and sanctionsState statute
• Tex. Ins. Code ch. 1201: Accident and health insurance policy provisionsState statute
• Texas Insurance Code Chapter 151, Consolidated Insurance Programs, complete: Subchapters A-D, Secs. 151.001-151.151State statute