Texas Schools: Vehicle Insurance?

Texas law requires drivers to show proof of their ability to pay for any accidents they may cause. Most drivers do this by purchasing auto liability insurance, which covers the repair or replacement of the other driver's car and their medical expenses. Texas has one of the highest numbers of uninsured drivers in the US, with around 12% of its drivers lacking car insurance in 2023. Texas law mandates that all drivers must carry at least the minimum liability coverage of $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 per accident for property damage.

Texas schools and insurance for young drivers

In Texas, insurance requirements are the same for all drivers. Driving without insurance is a serious offence and could lead to a loss of license, especially for new drivers. It is critical that insurance is sorted out before teens get on the road.

The State Requirements

The state of Texas mandates coverage of 25/50/25 for anyone operating a motor vehicle. This means $25,000 for bodily injury to one person, $50,000 for bodily injury to more than one person, and $25,000 for property damage.

The Cost of Adding a Young Driver to Your Insurance

Adding a teen driver to your insurance policy can be expensive. It will mean an annual increase of anywhere from $1,200 to $4,900, with the state average at $2,171.

Discounts

There are ways to save money on insurance for young drivers. Teen drivers with good grades or test scores can get discounts on auto insurance, and these can last for years. Taking a safety course can also result in a discount.

The Right Vehicle

It usually costs less to insure an inexpensive vehicle, or one with a good safety rating. If the car is inexpensive, it may make sense to skip comprehensive insurance, which covers things like theft and hail damage, and stick with collision insurance, which covers wrecks.

Learner's Permits

You are not legally required to have insurance for a teen with a learner's permit, but you should always let your insurance company know if a teen is learning to drive in your vehicle. If you don't, and your teen gets in a wreck, your insurance company could deny your claim, void your policy, or refuse to renew it.

Collision insurance

Events not covered under collision coverage include damage to another vehicle, medical expenses for you or other parties, theft or vandalism damage, collisions with an animal, damage caused by weather such as hail, fire, or flood, and damage from fallen objects.

The premium you pay for collision coverage varies from driver to driver and policy to policy, based on numerous factors. Personal details such as your age, gender, marital status, and driving record factor into the cost of an auto policy, as do details about the vehicle you drive and where you live within your state. The average cost of collision coverage among TGS Insurance customers in Texas is $344.85 per year.

If your car is paid off, then whether or not to purchase collision coverage is up to you. However, if you can't afford to fix or replace your vehicle if it's totaled after a wreck, carrying collision coverage is a smart financial move.

Comprehensive insurance

While comprehensive insurance is not mandatory in Texas, it is highly recommended to protect yourself financially in case of unexpected events. The cost of comprehensive insurance varies depending on factors such as the value of your car and your chosen deductible amount. It is worth noting that comprehensive insurance rates tend to be higher for luxury, high-performance, and sports cars due to their higher repair costs.

When purchasing comprehensive insurance, it is advisable to shop around and compare policies from different companies to find the best coverage for your needs and budget. You can use resources like TDI's HelpInsure to get sample prices and learn about the companies' complaint records and financial ratings. By choosing the right comprehensive insurance, you can ensure that you are protected against financial losses in the event of damage to your vehicle from various covered perils.

Uninsured/underinsured motorist insurance

Uninsured motorist coverage protects you and your property after an accident where the at-fault driver does not have car insurance. Underinsured motorist coverage, on the other hand, protects you and your property when the at-fault driver has insurance but not enough to cover all the damage. Underinsured motorist coverage steps in when the at-fault driver's liability limits are too low to cover all the damages.

In Texas, insurance agents are required to offer you both uninsured and underinsured motorist coverage when you purchase auto insurance. If you do not want this coverage, you must submit a denial in writing.

Texas schools and proof of insurance

In Texas, drivers are legally required to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. This insurance covers the cost of repairing or replacing another person's car or property, as well as their medical expenses, if the driver is at fault in an accident. Texas law mandates a minimum of $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage, known as 30/60/25 coverage.

In addition to liability insurance, Texas drivers have the option to purchase other types of auto insurance coverages, such as collision coverage, comprehensive coverage, medical payments coverage, and personal injury protection (PIP). Collision coverage pays to repair or replace the driver's own car after an accident, while comprehensive coverage pays for damage caused by events other than collisions, such as fire, flood, or vandalism. Medical payments coverage and PIP cover the driver's and their passengers' medical bills, with PIP also covering additional costs such as lost wages.

While Texas law does not require drivers to carry collision or comprehensive insurance, lenders will usually mandate these coverages for drivers who are still making payments on their vehicles. Additionally, drivers who frequently borrow cars may opt for a non-owner liability policy, which covers damages and injuries caused to others while driving a borrowed vehicle.

Texas also offers a Consumer Bill of Rights for auto insurance, which insurance companies are required to provide to their customers. This bill outlines the rights and responsibilities of both the insured and the insurance company, ensuring fair and transparent practices in the auto insurance industry.

Frequently asked questions