Texas Auto Insurance: What's Required?

Texas state law requires all drivers to have a minimum level of auto insurance. This includes liability insurance, which covers the cost of accidents in which the driver is at fault. The minimum coverage requirements in Texas are $30,000 per injured person, up to $60,000 per accident, and $25,000 for property damage, often referred to as 30/60/25 coverage. Drivers must also carry proof of insurance and present it to law enforcement officials upon request.

Minimum insurance requirements

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

While these are the minimum requirements, they may not cover all the costs of recovery and repairs if you're injured in an accident. It's important to consider additional coverage options to ensure you have adequate protection.

Liability Coverage

Liability coverage is the only type of insurance that is legally required in Texas. It pays for medical bills, funeral expenses, lost wages in case of a serious injury, and pain and suffering compensation. It also covers property damage, such as repairing or replacing a damaged vehicle or paying for a rental car during repairs.

Collision Coverage

If you are financing the purchase of a new car, your lender will require collision coverage. This type of insurance covers damage to your car while you still owe money on it. Collision coverage will pay out the actual value of your car, the amount necessary to repair or replace it, or the amount on the insurance declaration page, whichever is the least.

Comprehensive Coverage

Comprehensive coverage is similar to collision coverage but applies to incidents other than collisions. It covers the cost of repairing or replacing your car if it is stolen, vandalized, or damaged by hail or other non-collision events.

Uninsured/Underinsured Motorist Coverage

This type of coverage will pay out damages for bodily injury and property damage if you are in an accident caused by a driver who doesn't have insurance or doesn't have enough insurance to cover the damages. Although Texas law requires insurance, many drivers are uninsured, so this coverage can provide added protection.

In addition to these main types of coverage, there are other optional coverages available, such as medical payments, rental car reimbursement, and roadside assistance. It's important to research and understand your options before purchasing auto insurance in Texas.

Proof of insurance

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

While Texas law does not require drivers to have insurance against uninsured and underinsured drivers, it is advisable to include this in your policy. This type of insurance will protect you if you are in an accident caused by a driver who does not have insurance or does not have sufficient coverage.

In addition to purchasing auto insurance, Texas drivers must show proof of insurance when pulled over by the police, during an accident, when registering their car, and when getting or renewing a Texas driver's license or registration. The law also requires proof of insurance as part of the annual vehicle inspection.

Texas has passed legislation allowing drivers to show proof of insurance on their cell phones. This means that drivers can present either the paper version of their proof of insurance card or display a digital version on their smartphone using the correct downloaded application for their insurer.

By law, Texas drivers are required to carry auto insurance coverage at all times. According to the Texas Department of Insurance, drivers should carry as much coverage as possible, but the minimum requirement is a set amount of liability coverage.

Collision coverage

If you own your vehicle outright and choose not to carry collision coverage, you will have to pay for any repairs or replacements out of pocket if you're involved in a single-vehicle accident or are found at fault in an accident. If the other driver is found at fault, their liability coverage will typically pay for the damage.

When deciding whether to purchase collision coverage, consider the value of your vehicle and your ability to pay out of pocket for repairs or a replacement. If your vehicle is brand new or worth a considerable amount, collision coverage could help you pay for expensive repairs or a replacement if it's damaged. Additionally, if you couldn't afford to pay for repairs or a replacement vehicle without insurance, collision coverage may be worth considering for peace of mind.

In Texas, if you still owe money on your car, your lender will require you to have collision and comprehensive coverage. Comprehensive coverage is similar to collision coverage but covers the cost of repairing or replacing your car in incidents other than a collision, such as theft, fire, hail, or vandalism.

Comprehensive coverage

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

If you own your vehicle outright, you can decide whether to add comprehensive coverage to your policy. This decision should be based on the value of your car, your personal preferences, and your financial circumstances. If your vehicle has a high cash value or you cannot afford to repair or replace it out of pocket, comprehensive coverage is recommended.

In Texas, comprehensive coverage may cover damage to your car caused by fire, hail, theft, flood, flying gravel, or hitting an animal. It's important to review your policy or speak to your agent to understand your specific coverage.

Uninsured/underinsured motorist coverage

Texas law requires drivers to have liability coverage on their vehicles. However, some drivers fail to get insured. In Texas, more than 2.6 million state-registered vehicles are not matched to an insurance policy, which is about 12% of the state's total registered vehicles. This means that there's a chance you could be hit by an uninsured driver.

• Car repairs and to replace the property in your car
• A rental car if you need it
• You and your passenger's medical bills
• Pain and suffering costs
• Diminished value if your car is worth less after the accident

The deductible for uninsured/underinsured coverage is $250. You can usually add more coverage in $5,000 increments, with a rule of thumb being to add at least enough property damage coverage to replace your vehicle.

Insurance companies must offer you this coverage when you buy auto insurance. If you don't want it, you must inform the company in writing.

Frequently asked questions