Last reviewed: 3 October 2026
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What auto insurance covers, coverage by coverage: Texas and Washington regulators compared
The short answer: an auto policy is a bundle of separate coverages. Some pay for damage you cause to others, some pay for your own car, and some pay medical bills.[1] This page draws on guidance from the Texas Department of Insurance (TDI) and the Washington Office of the Insurance Commissioner (OIC). Rules and policy wording differ by state and by company.
The short version
- TDI says each coverage is separate and "coverages vary by policy and depend on the types of coverages you choose."[2]
- TDI says the first page of your policy, the declaration page, summarizes your coverages, dollar limits and deductibles.[2]
- Washington says to read your policy thoroughly to know what is covered.[1] TDI says to read your policy or talk to your agent to be sure of your exact coverages.[2]
The coverages, as each regulator describes them
| Coverage | Texas (TDI) | Washington (OIC) |
|---|---|---|
| Liability | Pays to repair the other driver's car if you caused the accident, and the other driver's and passengers' medical bills and some other expenses.[2] | Bodily injury liability covers injuries you or the designated driver cause to someone else. Property damage liability helps pay for damage you cause to another vehicle or property.[1] |
| Collision | Pays to repair or replace your car after an accident.[2] | Pays for damage to your car if you collide with another car or object or your car flips over.[1] |
| Comprehensive | Pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision.[2] | Reimburses loss from theft or damage caused by something other than a collision, such as fire, vandalism or contact with an animal.[1] |
| Medical payments and personal injury protection (PIP) | Medical payments pays your and your passengers' medical bills. PIP is similar but also pays lost wages and other nonmedical costs.[2] | PIP pays, among other things, for treating injuries to the driver and other people in the car after an accident.[1] |
| Uninsured and underinsured motorist | Pays if you are hit by someone who had no insurance or not enough, or in a hit-and-run accident.[2] | Reimburses you if you, a family member or your designated driver is hit by an uninsured driver, a hit-and-run driver or an unidentified vehicle.[1] |
| Towing and rental | Towing and labor coverage pays to tow your car if it cannot be driven. Rental reimbursement pays for a rental if yours is stolen or being repaired.[2] | Listed as additional coverages: rental reimbursement and roadside assistance.[1] |
TDI counts eight basic coverages: liability, collision, comprehensive, medical payments, personal injury protection, uninsured and underinsured motorist, towing and labor, and rental reimbursement.[2] Washington's page calls these "fairly standard types of coverage on most auto insurance policies in Washington" and says some have to be offered to you, and some may be part of the policy unless you opt out.[1]
Deductibles and dollar limits
- TDI says you must pay a deductible for collision, comprehensive and uninsured/underinsured motorist claims. A deductible is the amount of a claim you must pay yourself.[2]
- TDI says liability, personal injury protection, uninsured/underinsured motorist, towing and labor, and rental coverages have dollar limits. Collision and comprehensive do not.[2]
- Washington says a deductible "may apply" when you use collision or comprehensive coverage.[1]
What TDI says most policies do not cover
TDI's table lists things most policies do not cover. Coverage varies by company, so check your own policy.
- Accidents while you are driving for a ride-hailing service or delivering food or other items for a fee.[2]
- Accidents while you are driving a car that does not belong to you but that you could use regularly, like a company-owned car.[2]
- Equipment not permanently installed in your car.[2]
- Accidents while you are driving in Mexico, driving for business, or racing.[2]
- Damages that you caused intentionally.[2]
Add-on coverages Washington lists
- Gap insurance: "The typical auto policy only covers the value of your car, not your auto loan." Gap insurance pays off your auto loan if your vehicle is totaled.[1]
- Umbrella liability policies are separate policies that apply after you have exhausted your liability protection in your auto or homeowner policies.[1]
- Driving to nearby countries: Washington says your auto insurance typically covers you in Canada but to check first, and that Mexico requires Mexican auto insurance.[1]
Required coverage and lenders
TDI says Texas law requires drivers to show proof they can pay for the accidents they cause, and that most drivers do this by buying liability insurance.[2] Washington says carrying bodily injury liability coverage is mandatory there.[1] TDI says that if you still owe money on your car, your lender will require collision and comprehensive coverage.[2] Washington says most lenders require comprehensive and collision coverage.[1]
Minimum amounts are set state by state and are not the same. TDI lists Texas's minimum liability limits as $30,000 for injuries per person, up to a total of $60,000 per accident, and $25,000 for property damage.[2] Washington's page says drivers there must carry at least $10,000 of property damage liability coverage.[1] These figures are for those two states only, and each state's minimums can change. We do not say how much coverage anyone should carry.
How to verify this yourself
Read the declarations page of your own policy and note each coverage, its dollar limit and its deductible. Then read the two regulator pages listed below. To check who sold you the policy, use your state insurance regulator's license lookup. Our guides to the Texas lookup and the state regulator directory show where to start.
What this page does not cover
We read one regulator page from Texas and one from Washington. Other states' coverages, required minimums, exclusions and wording can differ, and so can individual companies' policies. We do not cover claims, premiums, discounts or young-driver rules, and we do not say how much of any coverage to buy. This is general information, not insurance or legal advice. For your own policy, ask your agent or insurer, or contact your state insurance regulator.
Your next step
Find your declarations page and list your coverages, limits and deductibles on one sheet. If a coverage named above is missing, ask your agent whether it is excluded, optional or not offered where you live.
Related checks
Our standard explains how we check an agent's license and disciplinary history. Check an agent reports our findings at category level, as a method and not a verdict. Neither reviews any insurer, plan or product. To confirm the person selling you coverage is licensed, see how to check an agent's license. More plain-language guides are in the agent guides.
When we will update this page
We re-read the sources when they change. If something here is out of date, tell us. Corrections are dated on the page.
References
- [1] Washington Office of the Insurance Commissioner, "Learn how auto insurance works", read 3 October 2026 — insurance.wa.gov/.../learn-how-auto-insurance-works
- [2] Texas Department of Insurance, "Auto insurance guide" (consumer bulletin), read 3 October 2026 — tdi.texas.gov/pubs/consumer/cb020.html
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