Auto Insurance In Texas: What's The Law?

Texas state law requires all drivers to have car insurance and proof of this must be shown upon request by a law enforcement official. The minimum insurance coverage required is $30,000 per injured person, $60,000 per accident, and $25,000 for property damage, often referred to as 30/60/25 coverage. This basic coverage is essential to comply with state laws, and failure to adhere to these requirements can result in penalties.

What are the minimum insurance requirements 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 and pays for their medical expenses if you are at fault in an accident.

In Texas, the minimum insurance requirements are as follows:

• Bodily injury liability coverage: $30,000 per person and $60,000 per accident. This covers medical bills, lost wages, pain and suffering, and funeral costs for the other driver and their passengers if you cause an accident.
• Property damage liability coverage: $25,000 per accident. This covers the cost of repairing or replacing the other person's property if you are at fault in an accident.

The above minimum requirements are often referred to as 30/60/25 coverage. While this is the basic coverage required by law, it is recommended that drivers consider purchasing additional coverage to ensure they are fully protected in the event of an accident. The minimum liability limits might be too low if you cause a multi-vehicle accident or if the other driver's car is totaled. If you don't have enough liability coverage, you may have to pay the remaining costs out of your own pocket, and the other driver could sue you.

In addition to the minimum liability coverage, Texas drivers are also required to show proof of insurance when requested by law enforcement. This can include situations such as when you are pulled over for a traffic violation, involved in an accident, registering your car, or getting a Texas driver's license.

While not mandatory, it is also a good idea to consider including uninsured/underinsured motorist coverage in your policy. This will protect you if you are injured in an accident caused by a driver who doesn't have insurance or doesn't have sufficient coverage.

What are the penalties for driving without insurance in Texas?

Texas has strict penalties for driving without insurance, and these increase for repeat offenders. For a first offence, fines range from $175 to $350, plus a $250 license renewal surcharge per year for three years, and an increase in premiums when you do get insurance because you are now considered a high-risk driver. You will also have to file an SR-22 form to verify that you carry the state-required liability coverage.

For a second offence, fines increase to between $350 and $1,000. The court could also order your vehicle to be impounded for up to 180 days, with a daily storage fee of up to $36.80 for larger vehicles, and a $20 impoundment fee. You may also have your vehicle registration and/or driver's license suspended.

If you are in an accident and are driving without insurance, you will be fined, have your vehicle impounded, and have your driving privileges suspended. If you are responsible for a collision that results in serious injuries or death, you could face a fine of up to $4,000 and up to a year in jail. You will also be 100% liable for any and all physical injuries and property damage resulting from the accident.

What is liability coverage?

In Texas, auto insurance is mandatory. The state has set minimum insurance coverage requirements, which are $30,000 per injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is referred to as 30/60/25.

Now, what is liability coverage?

Liability coverage is a standard feature of most vehicle and property insurance policies, including auto and homeowners insurance. It protects you financially if you are responsible for someone else's injuries or property damage. In the context of car insurance, it is typically called auto liability coverage, whereas, in property insurance, it is usually referred to as personal liability coverage.

Liability coverage can apply in various situations, but it is important to understand that it does not cover your own injuries or property damage. Instead, it covers scenarios where you are legally responsible for another person's damages.

• Injuries you cause to someone else while driving.
• Damage you cause to other vehicles while driving.
• Damage to someone else's property, such as a mailbox or street sign.
• Legal expenses for accident-related lawsuits.

When it comes to property insurance, liability coverage can extend to injuries that occur on your property for which you are responsible, damage to other people's property, and legal expenses for related lawsuits.

In the state of Texas, liability coverage is legally required and pays for bodily injuries and property damage that you cause in an accident where you are at fault. This coverage also helps pay for the injured party's lost wages, pain, and suffering. It is important to note that your liability coverage will not pay for your own injuries or damage to your property.

What is collision coverage?

In the state of Texas, auto insurance is mandatory for all drivers. The state has set minimum insurance coverage requirements at $30,000 per injured person, up to $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is referred to as 30/60/25. While collision coverage is not mandated by Texas law, it is an important component of auto insurance.

Collision coverage is a type of auto insurance that pays for the repair or replacement of your vehicle if it is damaged in a collision with another vehicle or a stationary object. This includes single-vehicle accidents, such as hitting a guardrail or telephone pole, as well as accidents involving other vehicles. Collision coverage also applies to collisions that occur while your vehicle is parked, including hit-and-run incidents. It is designed to protect your vehicle when it is damaged in an accident, regardless of fault.

Unlike liability coverage, which covers the other driver's vehicle and medical expenses if you are at fault in an accident, collision coverage focuses solely on your vehicle. It ensures that you can repair or replace your car without having to pay out of pocket. This is especially important if you are unable to afford unexpected repair or replacement costs.

While collision coverage is not legally mandated, it may be required by your lender or leasing company. If you are financing or leasing your vehicle, your lender will likely require collision coverage to protect their investment. In such cases, collision coverage becomes mandatory to comply with the terms of your loan or lease agreement.

It is important to note that collision coverage has certain exclusions. It does not cover damage to another vehicle or the medical expenses of other parties involved in the accident. Additionally, it does not include theft, vandalism, or collisions with animals, which are typically covered under comprehensive coverage. Damage caused by events outside your control, such as falling trees, or weather-related incidents, is also excluded from collision coverage.

Cost of Collision Coverage

The cost of collision coverage can vary depending on various factors, including your age, gender, marital status, driving record, vehicle type, and location within the state. In Texas, the average cost of collision coverage is approximately $344.85 per year, but prices can range from under $200 to over $500. The deductible for collision coverage, which is the amount you pay before the insurance company covers the rest, typically ranges from $500 to $1,500 per claim.

What is comprehensive coverage?

In Texas, drivers are required by law to have car insurance. The minimum coverage is $30,000 per injured person, up to $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is known as 30/60/25. However, this is just the minimum requirement, and drivers may need to purchase additional coverage to fully protect themselves.

One type of optional coverage that drivers can consider is comprehensive coverage. Comprehensive coverage protects your vehicle from damage caused by incidents other than collisions. This includes events such as theft, vandalism, hail, fire, and accidents with animals. For example, if you hit a deer while driving, comprehensive coverage would pay for the damage to your car. On the other hand, if you swerve to avoid the deer and hit a tree, this would be considered a collision with an object and would not be covered by comprehensive coverage.

Comprehensive coverage is often confused with collision coverage, but they serve different purposes. While comprehensive coverage is for non-collision events, collision coverage protects your car if you get into an accident with another vehicle or object, regardless of who is at fault. Comprehensive coverage is typically added to an existing policy and is not a separate type of insurance.

The cost of comprehensive coverage will depend on factors such as the value of your car, your deductible, and your personal preferences. If your car has a high cash value or you cannot afford to repair or replace it out of pocket, comprehensive coverage can provide peace of mind. However, if your car's value is low and you have a high deductible, comprehensive coverage may not be worth the additional cost.

In Texas, comprehensive coverage is not required by law, but it may be mandated by lenders if you lease or finance your vehicle. Ultimately, the decision to add comprehensive coverage depends on your financial situation and how much protection you feel you need for your vehicle.

Frequently asked questions