Texas Auto Insurance Recognition: Out-Of-State Policies Explained

Texas law requires drivers to carry car insurance and proof of coverage at all times. This means that Texas drivers must be able to pay for any accidents they cause. While Texas auto insurance policies will usually cover drivers involved in accidents in other states, it's important to note that each state has different requirements for the amount of coverage. Most insurance companies across the US and Canada have reciprocity agreements, so if another state requires more auto insurance, your Texas insurance company will typically increase its level of coverage. However, it's always a good idea to check with your insurance provider to ensure you have the necessary coverage when driving outside of Texas.

Texas auto insurance in other states

Texas law requires drivers to carry auto insurance and to be able to show proof of coverage when requested by a law enforcement official. This coverage is to pay for any accidents they cause. The minimum liability coverage in Texas is 30/60/25, which means:

• $30,000 in bodily injury coverage per person
• $60,000 in bodily injury coverage per accident
• $25,000 in property damage coverage per accident

Most auto liability policies in Texas will pay out if the insured Texas driver is involved in an accident in another state or in Canada. This is because most insurance companies in the US and Canada have reciprocity agreements. So, if another state requires more auto insurance, a Texas insurance company will usually raise its level of coverage.

However, it's important to note that Texas auto insurance policies typically won't cover you in Mexico. Mexico doesn't recognise US policies, so separate auto insurance is required for driving there.

Texas also has requirements for out-of-state drivers. If you're visiting Texas, your insurance coverage must meet the state's minimum levels of "financial responsibility". Texas requires more coverage than many other states. Out-of-state auto insurers will usually raise their rate of coverage if one of their insured drivers is involved in an accident in Texas, due to reciprocity agreements.

In terms of registering a car in one state and insuring it in another, this is generally not allowed. A car must be registered and insured in the state it is used and garaged in. However, some states may make exceptions for full-time students. It's important to check the specific laws and requirements of the states in question.

Out-of-state drivers in Texas

If you're an out-of-state driver in Texas, you must have insurance coverage that meets the state's minimum levels of "financial responsibility" for your car. Texas requires more coverage than many other states.

The minimum levels of coverage in Texas are:

• $30,000 for bodily injury to or death of one person in one accident
• $60,000 for bodily injury to or death of two or more persons in one accident
• $25,000 for damage to or destruction of property of others in one accident

These minimums may not be enough to pay for another driver's vehicle damage and bodily injury. That's why it's recommended that drivers obtain more insurance than the minimum. This is true for out-of-state drivers in Texas as well.

Under insurance company reciprocity agreements, most out-of-state auto insurers will raise their rate of coverage if one of their insured drivers is involved in an auto accident in Texas. However, it's important to note that even if you obtain extra auto liability insurance coverage, it will not pay to repair or replace your car or to treat your injuries.

Texas is an at-fault state, which means the at-fault driver's insurer is responsible for paying for damages and injuries. If an accident happens in Texas, Texas law is the law that is followed.

Other types of auto insurance coverage in Texas

In addition to the minimum liability insurance, Texas requires all insurance companies to offer optional personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage in your policy. These would pay for your own medical bills and subsequent costs in an accident you caused or when a driver who hits you has no insurance or insufficient insurance. Policyholders have the right to reject these extra coverages in writing.

Other types of auto insurance coverage that can help pay for your additional expenses include:

• Personal Injury Protection (PIP)
• Uninsured or Underinsured Motorist Coverage
• Medical Payments Insurance
• Collision Insurance (to repair your vehicle)

Insurance requirements in Texas

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages are $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. This is known as 30/60/25 coverage.

While these are the minimum requirements, there is no guarantee that this level of coverage will address all the costs of recovery and repairs if you are injured in an accident. As such, it is recommended that you consider additional coverage.

Texas law requires drivers to show proof of insurance when requested by law enforcement. This can include when you are pulled over for a traffic violation, involved in an accident, or registering your car. You will also need to provide proof of insurance to get a Texas driver's license or renew your registration or license.

Liability coverage is the only type of insurance that is legally required in Texas. This covers the cost of bodily injuries and property damage caused by the policyholder in an at-fault accident. It also covers the injured party's lost wages, pain, and suffering. However, liability coverage will not pay for any injuries or damages to the policyholder's property.

While not required by Texas law, the following types of coverage are recommended and often offered by insurance carriers:

• Comprehensive coverage: Pays for damages to your vehicle caused by non-collision circumstances, such as theft, weather events, fire, vandalism, glass breakage, and contact with animals.
• Collision coverage: Pays for damages to your vehicle caused by a collision with another vehicle or stationary object.
• Loan/lease payoff coverage: Pays the difference between what you owe on a loan and your car's actual cash value if you owe more than your car is worth.
• Medical payments coverage: Pays for the medical expenses of the policyholder and those in their vehicle.
• Rental car reimbursement coverage: Pays for a rental car if your car is unable to be driven.
• Roadside assistance coverage: Covers services such as fuel delivery, lockout service, jump-starts, and towing.
• Uninsured/underinsured motorist coverage: Protects you if you are injured in an accident caused by a driver with insufficient or no insurance.
• Personal injury protection (PIP) coverage: Pays for the medical bills, lost wages, and other non-medical costs of the policyholder and their passengers. PIP coverage is automatically included in all auto policies in Texas but can be refused in writing.

Recommended auto insurance in Texas

Texas law requires drivers to have a minimum amount of liability insurance, sometimes written as 30/60/25. This means that drivers must have $30,000 in bodily injury liability per person and $60,000 per accident, as well as $25,000 in property damage liability coverage. While these are the minimum requirements, drivers can also opt for additional coverage, such as collision, comprehensive, personal injury protection, and uninsured motorist coverage.

When it comes to recommended auto insurance in Texas, there are several companies that stand out for their competitive rates, customer service, and coverage options. Here are some of the top picks:

• Travelers: This company offers a broad range of coverage options and discounts, and it received fewer customer complaints than expected. However, its customer satisfaction ratings are below average, and rideshare insurance is not available in Texas.
• State Farm: State Farm offers generous coverage and discounts for good driving habits, and it has fewer complaints compared to other large competitors. It also has a better-than-average customer satisfaction rating for buying auto insurance. On the downside, State Farm does not offer gap insurance.
• Chubb: Chubb caters mostly to high-net-worth families and offers a range of policy perks, including generous coverage and the use of original equipment manufacturer parts in covered accidents. However, drivers may have to pay a higher premium for these perks, and Chubb does not focus on providing cheap insurance.
• Farmers: Farmers is one of the largest insurers in the country and offers a long list of discounts and customization options. It has above-average customer satisfaction ratings for auto insurance claims and has fewer complaints than expected for a company of its size. However, its customer satisfaction rating for buying auto insurance is below average.
• Geico: Geico offers top-notch customer service and a range of coverage options and discounts. It also has a highly-rated mobile app and an extensive list of potential discounts. However, Geico has fewer in-person locations and limited optional coverage types.
• USAA: USAA is highly rated for its customer service and offers a wide range of coverage options tailored to military needs. However, it is only available to active-duty military, veterans, and their families.
• Nationwide: Nationwide is known for its innovative programs and wide range of coverage options, making it easy to customize your policy. It also has low customer complaint rates and offers features like "On Your Side" service, which provides free annual insurance consultations. However, it scored slightly below average in the 2023 J.D. Power Auto Claims Satisfaction Study.
• Allstate: Allstate has a wide network of local agents throughout Texas, providing excellent customer service. It also offers a variety of discounts, including multiple policy, new car, and automated payment discounts. However, Allstate scored below average in J.D. Power's regional 2023 U.S. Auto Insurance Study and Insurance Digital Experience Study.

Texas auto insurance in Mexico

Texas auto insurance is not valid in Mexico. If you're planning to drive into Mexico, you will need to purchase a Mexican auto insurance policy. This is because Mexico does not recognize American auto insurance policies, and you will not be able to use your US insurance to cover any damages in the event of an accident.

The good news is that it's easy and relatively cheap to get a Mexican car insurance policy. You can purchase one online through a trusted car insurance company, and some large US insurers like AAA, Progressive, and Geico have partnerships with Mexican insurance companies that specialize in international policies. You can also buy a policy at the border, but this is usually much more expensive than buying one in advance online.

A Mexican car insurance policy will ask for the following information:

• The type of car you drive
• The value of your car
• The coverage limits you want
• How long you will be in Mexico
• Where you will be driving in Mexico
• If any driver is under 21
• If you will be towing anything

The coverage consists of a lump-sum liability limit, some form of first-party medical insurance benefits, and uninsured motorist insurance. Better Mexican car insurance policies may also offer endorsements such as rental car insurance, roadside assistance, and even coverage for plane tickets if something happens to your car.

It's important to note that if you do not carry collision or comprehensive coverage on your US policy, you will be ineligible for it in your Mexican insurance policy. Additionally, the cost of a Mexican car insurance policy will depend on the duration of your stay and the value of your car, among other factors.

Frequently asked questions