Texas Auto Insurance: Minimums Explained

Texas state law requires drivers to 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 referred to as 30/60/25. This means that if you are at fault in an accident, your insurance will cover the costs of repairing or replacing the other driver's car and their medical expenses up to these limits. However, the minimum coverage may not be sufficient if you are sued for additional costs.

Liability insurance

The minimum coverage required by Texas law is $30,000 of liability insurance per person for bodily injury, up to a total of $60,000 per accident, and $25,000 per accident for property damage. This is often written as 30/60/25 coverage and is the basic requirement for drivers in Texas. However, it is worth considering purchasing more than the minimum coverage to protect yourself financially in the event of an accident. The minimum coverage may not be sufficient to cover all the costs if you are found to be at fault, and you could be sued by other drivers to collect the difference.

In addition to the minimum liability coverage, Texas drivers may also want to consider additional types of insurance, such as collision coverage and comprehensive coverage. Collision coverage pays for repairs to your car after an accident, while comprehensive coverage helps pay for damages caused by events like hail, fire, or theft. These types of coverage can provide added protection and peace of mind in the event of an accident or other mishap.

It is also recommended to consider uninsured or underinsured motorist coverage, which can protect you if you are hit by a driver who does not have sufficient insurance or does not stop. This type of coverage can help pay for auto damage, medical treatment, lost wages, and other expenses incurred as a result of an accident with an uninsured or underinsured driver.

Collision coverage

The cost of collision coverage varies from driver to driver and policy to policy, with factors such as age, gender, marital status, and driving record impacting the premium. The average cost of collision coverage in Texas is $344.85 per year, but this can range from under $200 to over $500. Collision coverage usually has a deductible, which you will have to pay each time you file a claim.

If your car is paid off, the decision to purchase collision coverage is yours. However, if you cannot afford to repair or replace your vehicle if it is damaged, it is recommended that you purchase this coverage.

Comprehensive coverage

While comprehensive coverage is not required by Texas law, it is recommended for additional protection. If you are still paying off your car or you are leasing, your lender will likely require you to have comprehensive coverage. The cost of comprehensive coverage varies depending on personal factors such as age, gender, marital status, driving record, the vehicle you drive, and where you live within the state. The average cost of comprehensive coverage among TGS Insurance customers in Texas is $183.57 per year, with ranges from under $150 to over $250.

When deciding whether to buy comprehensive coverage, consider the value of your vehicle, your driving habits, and your current financial situation. If your vehicle is damaged or totaled, comprehensive coverage can help you avoid a financial headache. Ask yourself if you would be able to pay for repairs or replacement out of pocket. If not, comprehensive coverage is a must-have.

Uninsured/underinsured motorist coverage

Uninsured motorist (UM) coverage protects you and your property after an accident where the at-fault driver does not have car insurance. Underinsured motorist (UIM) coverage, on the other hand, protects you when the at-fault driver has insurance but not enough to cover all the damage.

In Texas, around 1 in 12 drivers do not have auto insurance, and there are more than 2.6 million state-registered vehicles without a matched insurance policy. This means that there's a chance you could be involved in an accident with an uninsured driver. If this happens, uninsured/underinsured motorist coverage can help cover the costs of car repairs, replacing property in your car, a rental car if needed, medical bills for you and your passengers, and pain and suffering costs. It also covers diminished value if your car is worth less after the accident. The deductible for this coverage is $250, which is typically much lower than the deductible for collision coverage.

You can usually add uninsured/underinsured coverage in $5,000 increments, and it is recommended to add enough property damage coverage to replace your vehicle. This type of coverage is especially important if you have an expensive vehicle or if you need long-term medical care, as your regular auto policy or health plan may not provide sufficient coverage in these cases.

Insurance companies in Texas are required to offer you uninsured/underinsured motorist coverage when you purchase auto insurance. If you do not want it, you must submit a denial in writing. Considering the potential costs and consequences of being in an accident with an uninsured or underinsured driver, this coverage can provide valuable peace of mind and financial protection.

Medical payments coverage

Medpay covers reasonable expenses incurred for necessary medical and funeral services because of bodily injury caused by an accident and sustained by a covered person. Covered persons include the policyholder, family members, and passengers. However, there are some exclusions, such as if the bodily injury was sustained while occupying a motorized vehicle with fewer than four wheels or while occupying a vehicle located for use as a residence or premises.

Medpay is typically valid for three years from the date of the accident, although some policies may only cover expenses incurred within one year. It is important to carefully review the terms of your policy to understand the specific coverage details.

Frequently asked questions