Texas Auto Insurance: Minimum Requirements You Need To Know

Texas law requires all drivers to have a minimum level of auto insurance, referred to as 30/60/25 coverage. This means that drivers must have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This basic coverage is designed to protect drivers financially in the event of an accident, paying for the other driver's car repairs and medical bills if they are at fault. However, it is recommended to purchase additional coverage to ensure adequate protection.

Liability insurance

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 other people's medical expenses if you are found to be at fault in an accident.

The minimum liability limits acceptable by Texas law are:

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

This basic coverage is referred to as 30/60/25. The average annual cost for minimum coverage car insurance in Texas is $789, or $66 per month.

It is important to note that liability insurance only covers others and not yourself or your vehicle. Therefore, most drivers should consider adding additional coverages beyond the state's minimum requirements.

Collision insurance

The average cost of collision coverage among TGS Insurance customers in Texas is $344.85 per year, but this can vary depending on personal details such as age, gender, and driving record, as well as the vehicle and location within the state. Collision coverage is usually written with a deductible that applies separately to each occurrence, meaning you will have to pay your deductible each time you file a claim. Deductibles typically range between $500 and $1,500, with $500 being the most common.

While collision insurance covers a lot, there are some things it does not cover. Damage to another vehicle, medical expenses, theft or vandalism damage, collisions with animals, and damage caused by weather or fallen objects are not covered by collision insurance. For coverage from these perils, you will need comprehensive coverage.

Comprehensive insurance

The cost of comprehensive insurance can vary depending on various factors, including your age, driving record, and the type of car you have. It is generally recommended to get quotes from multiple insurance companies to find the best rate for the coverage you need. Additionally, you may be able to save money by bundling your comprehensive insurance with other types of coverage, such as liability insurance.

In conclusion, while comprehensive insurance is not mandatory in Texas, it is an important consideration for anyone looking to protect their vehicle from non-collision incidents. By understanding the benefits and limitations of comprehensive insurance, you can make an informed decision about whether it is right for your needs.

Uninsured/underinsured motorist insurance

In Texas, uninsured/underinsured motorist coverage is not mandatory, but insurance companies are required to offer it when you buy auto insurance. This type of insurance is intended to provide protection if you are involved in an accident where the at-fault driver is uninsured or not insured enough to cover your medical and vehicle repair costs. It is a good idea to consider including it in your policy, as many drivers ignore the law and drive without insurance.

Uninsured/underinsured motorist coverage will pay out damages for bodily injury and property damage. This includes car repairs, replacing the 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 uninsured/underinsured coverage is typically $250, which is much lower than the deductible for collision coverage.

You can usually add more uninsured/underinsured coverage in $5,000 increments, and it is recommended to add enough property damage coverage to replace your vehicle. Speak to your insurance agent to determine the best coverage amount for your needs.

If you decide that you do not want uninsured/underinsured motorist coverage, you must submit a denial in writing to your insurance company. It is important to understand, however, that this is the only type of auto coverage that protects you from uninsured or underinsured drivers. By adding this coverage to your policy, you can proactively plan for the unexpected and gain peace of mind.

Medical payments insurance

While companies are not required to offer Med-Pay coverage, it can provide valuable financial protection in the event of an accident. Med-Pay covers the policyholder's medical and funeral expenses, as well as those of their passengers. It is important to carefully review your policy to understand the specific details of your Med-Pay coverage, as the scope of what is included can vary.

In Texas, auto insurance is mandatory, and drivers are required to have a minimum of $30,000 per injured person and $60,000 per accident in liability coverage, along with a minimum of $25,000 in property damage coverage. While Med-Pay is not included in these minimum requirements, it can be a valuable addition to your auto insurance policy to ensure you have comprehensive protection in the event of an accident.

Frequently asked questions