Texas Auto Insurance: How Often Can You Change?

Texas law requires drivers to show proof of insurance, and while you can change your car insurance policy at any time, it's important to have a new policy lined up before cancelling your old one. You can switch car insurance companies multiple times a year, and there is no penalty for doing so. However, some insurance companies may charge a cancellation fee, so it's important to review the terms and conditions of your policy before making any changes.

How to change auto insurance in Texas

Changing your auto insurance in Texas is a straightforward process, but it's important to understand the requirements and options available to you. Here's a step-by-step guide on how to change your auto insurance in Texas:

Step 1: Understand the Requirements

Before making any changes, it's crucial to know the minimum auto insurance requirements in Texas. Texas law requires drivers to have a minimum amount of liability coverage. Liability coverage protects you financially by paying for the other driver's car repairs and medical bills if you are at fault in an accident. The minimum coverage limits in Texas are $30,000 for injuries per person, up to a total of $60,000 per accident, and $25,000 for property damage, also known as 30/60/25 coverage.

Step 2: Evaluate Your Needs

Review your current coverage and consider any changes in your life circumstances that may impact your insurance needs. For example, if you've recently gotten married, added a teenage driver to your policy, or purchased a new vehicle, your insurance needs may have changed. Think about the level of coverage you require and any additional coverages you may want, such as comprehensive or collision insurance.

Step 3: Shop Around and Compare Quotes

Start by gathering quotes from multiple insurance providers. You can use comparison websites or contact insurance companies directly to obtain quotes. Be sure to compare not only the prices but also the coverage details, including deductibles, types of coverage, and coverage limits. Consider your specific needs and choose a policy that offers the best combination of coverage and price.

Step 4: Select and Enroll in a New Policy

Once you've found a suitable policy that meets your needs and budget, it's time to enroll. Before finalizing the new policy, ensure that it is active and will take effect at least one day before your current policy expires to avoid any lapse in coverage. This is crucial, as a gap in coverage can lead to increased rates or even legal consequences.

Step 5: Notify Your Lender

If you have financed or leased your vehicle, don't forget to inform your lender or lessor about the change in insurance. They will need to know the details of your new insurance policy.

Step 6: Cancel Your Old Policy

After verifying that your new policy is active, you can proceed to cancel your previous insurance policy. Contact your current insurance provider and inform them of your intention to cancel. Depending on the timing of the cancellation, you may be entitled to a refund for any unused portion of your premium.

Step 7: Obtain Proof of Insurance

Once your new policy is in place, obtain proof of insurance, such as an insurance card. Most states allow digital copies, but it's a good idea to save it on your phone or device for easy access, even without an internet connection.

By following these steps, you can confidently change your auto insurance in Texas and ensure that you have the coverage you need while also taking advantage of any cost savings or improved services that better meet your needs.

When to change auto insurance in Texas

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

It is important to note that the minimum liability limits may be insufficient if you are responsible for a multi-vehicle accident or if the other driver's car is totaled. In such cases, you may have to pay the remaining amount out of pocket if your liability coverage is not enough to cover the damages and injuries. Therefore, it is recommended to consider purchasing additional liability coverage.

Additionally, if you still owe money on your car, your lender will likely require you to have collision and comprehensive coverage. Collision coverage pays for the repair or replacement of your car after an accident, while comprehensive coverage protects against damages caused by incidents other than collisions, such as fire, flood, vandalism, or theft.

When it comes to changing auto insurance in Texas, you can make this change at any time. There are no restrictions on how often you can switch insurance providers. However, it is essential to maintain continuous coverage to avoid penalties and higher rates in the future. Here are some scenarios that may prompt you to change your auto insurance:

• Moving to Texas: Texas has specific insurance requirements for drivers, including minimum liability coverage. If you are moving to Texas, you will need to review your current coverage and make any necessary adjustments to comply with the state's mandates.
• Change in Marital Status: If your marital status changes, you have the right to continue your existing insurance coverage or purchase a new policy with similar coverages and the same expiration date.
• New Car Purchase: When buying a new car, you typically have a grace period of 7 to 30 days to add it to your existing insurance policy. However, it is important to contact your insurance company as soon as possible to ensure continuous coverage.
• Change in Financial Situation: If your credit score improves or you start driving fewer miles due to working from home or other life changes, you may be eligible for lower insurance rates. Shopping around for new coverage can help you take advantage of these changes.
• Poor Claims Handling: If you have had an unpleasant experience with your current insurance provider when filing a claim, you may consider switching to a company that offers better customer service.
• Better Rates and Discounts: You may find that other insurance companies offer more competitive rates or provide discounts that better suit your current situation, such as student discounts or discounts for multiple policies.

Remember, when changing auto insurance in Texas, it is crucial to follow the proper steps to avoid a lapse in coverage. Purchase your new policy before cancelling your previous one, and ensure that you have proof of insurance to comply with Texas's financial responsibility requirements.

Auto insurance discounts in Texas

Texas has a Consumer Bill of Rights for auto insurance, which your insurance company will provide when you take out or renew a policy.

Texas law requires drivers to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. Liability insurance covers the cost of repairing or replacing the other driver's car, as well as their medical expenses, when you are at fault in an accident.

You can save money on your auto insurance premium by taking advantage of discounts. Each company decides what discounts to offer and the amount of the discount. You might be able to get a discount if you have:

• Airbags, antilock brakes, and antitheft devices in your car.
• Completed a defensive driving or driver education course.
• More than one car on a policy.
• Other policies with the same insurance company.
• No claims and a good driving record.

You can also save money by increasing your deductible. A deductible is the amount of a claim that you must pay yourself. For example, if you have a $1,500 collision claim and your policy has a $500 collision deductible, the insurance company will deduct $500 from your claim amount and pay you $1,000.

You can switch your car insurance provider at any time, but remember that many insurers offer loyalty discounts for long-time customers. If you switch companies after a month, you won’t be eligible for a loyalty discount. Check with your car insurance company to see if it charges a cancellation fee within a certain time frame. Most companies let you cancel without any fees, but this isn’t always the case.

Auto insurance coverage in Texas

Texas law requires drivers to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. Liability insurance covers the cost of repairing or replacing the other driver's car, as well as their medical expenses, if you are at fault in an accident.

In Texas, you must have a minimum of $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25. However, the minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver's car is totaled. In that case, you might have to pay the remaining amount out of your own pocket, and the other driver could sue you.

There are eight basic auto insurance coverages in Texas. In addition to liability coverage, you can choose to buy the following:

• Collision coverage: This pays to repair or replace your car after an accident.
• Comprehensive coverage: This covers damage to your car from fire, flood, vandalism, or something other than a collision.
• Medical payments coverage: This pays for your and your passengers' medical bills, even if you are hurt while riding in someone else's car or while walking or biking.
• Personal injury protection (PIP) coverage: This is similar to medical payments coverage but also pays for things like lost wages and other non-medical costs. All auto policies in Texas include PIP coverage, but you can opt out of it in writing if you don't want it.
• Uninsured/underinsured motorist coverage: This covers you if you are hit by someone who doesn't have insurance or doesn't have enough insurance to pay for your medical and car repair bills. It also covers hit-and-run accidents. Insurance companies must offer you this coverage, but you can opt out in writing if you don't want it.
• Towing and labor coverage: This pays to tow your car if it can't be driven and covers labor costs for issues like changing a flat tire or jump-starting your battery.
• Rental reimbursement coverage: This pays for a rental car if your car is stolen or being repaired after an accident. Some policies also cover taxis or ride-hailing services.

When shopping for auto insurance in Texas, it's a good idea to compare prices and policies from several companies. You can use resources like TDI's HelpInsure to get sample prices and learn more about insurance companies.

Auto insurance requirements in Texas

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 is known as 30/60/25 coverage. 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 recommended that you consider including insurance against uninsured and underinsured drivers in your policy. This will protect you if you're in an accident caused by a driver who doesn't have insurance or whose coverage is insufficient.

In Texas, you must show proof of insurance if police request it. For example, if you're pulled over for a traffic violation, a police officer will ask to see proof of insurance along with your license and registration. You'll also need to show proof of insurance if you're involved in an accident, registering your car, or getting a Texas driver's license. You'll also need to show proof of insurance when renewing your registration or license, and as part of your annual vehicle inspection.

When you purchase a car insurance policy, your insurance company will send you ID cards. You should keep these in your glove compartment so that you can access them immediately after an accident or if requested by a police officer.

There are two types of liability coverage that your insurance policy must include: property damage and bodily injury. Property damage safeguards your assets if you are legally responsible for a covered accident, while bodily injury safeguards your assets if you sustain bodily harm in a covered accident. Liability coverage also provides for your legal defence expenses if you are sued as a result of a covered accident.

In addition to the minimum requirements, there are several other types of insurance coverage available in Texas. Collision coverage, for example, is used to repair your vehicle when physical damage occurs from a collision with another vehicle or object (subject to a deductible). Comprehensive coverage is similar but covers the cost of repairing or replacing your car in non-collision incidents, such as theft, fire, or vandalism.

Uninsured/underinsured motorist coverage will protect you if you're in an accident where the other party is at fault and doesn't have insurance or doesn't have sufficient insurance to cover the damages. While Texas law requires insurance, many drivers ignore this, so this coverage can provide added protection.

Frequently asked questions