Understanding Auto Insurance Requirements In Texas

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages 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 this is the minimum, it's important to note that this may not be enough to cover all costs in the event of an accident. Texas drivers must also show proof of insurance if police request it.

Minimum insurance requirements

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages in Texas are $30,000 per injured person and $60,000 per accident for bodily injury liability, and $25,000 per accident for property damage liability. Insurance professionals refer to these requirements as 30/60/25 coverage.

These requirements are minimums, and there is no guarantee that they will cover all the costs of recovery and repairs if you are injured in an accident. It is recommended that drivers consider insurance against uninsured and underinsured drivers, which is not mandatory in Texas but can offer added protection.

In addition to the minimum coverage, Texas drivers must also show proof of insurance if police request it. This can be in the form of ID cards provided by the insurance company, which should be kept in the car at all times. Proof of insurance is also needed to register a car, get a Texas driver's license, and renew a registration or license.

Texas is an at-fault state, meaning the driver responsible for an accident covers the damage through their insurance. Therefore, liability insurance is legally required in Texas. This covers medical bills, funeral expenses, lost wages in the case of serious injury, and pain and suffering compensation, as well as property damage such as repairing or replacing a damaged vehicle or providing a rental car.

While collision and comprehensive coverage are not required by Texas law, they are often stipulated in financing or leasing contracts to protect the financial interest in the vehicle. Collision coverage pays for damage to your car while you still owe money on it, and comprehensive coverage is for non-collision incidents like theft, fire, or vandalism.

Proof of insurance

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages are $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. These requirements are minimums, and drivers are encouraged to purchase additional coverage for greater financial protection in the event of an accident.

Texas drivers must carry proof of insurance and present it upon request by law enforcement officials. This can be done by providing a physical copy of your insurance card or, thanks to recent legislation, by displaying it electronically on your smartphone or wireless device. Failure to provide proof of insurance when requested by a law enforcement officer can result in citations and fines.

It is important to keep your proof of insurance easily accessible, either in your glove compartment or on your smartphone, to avoid any issues during traffic stops or accidents. If you are unable to provide proof of insurance, you may be cited for a driving infraction, even if you have valid insurance coverage.

Texas law requires drivers to show financial responsibility in the event of an accident. Most drivers fulfil this requirement by purchasing auto liability insurance. Liability insurance covers the cost of repairing or replacing the other driver's vehicle and their medical expenses when you are at fault in an accident. The minimum liability coverage in Texas is $30,000 per injured person, with a total of $60,000 for everyone injured in an accident, and $25,000 for property damage. This basic coverage is commonly referred to as 30/60/25 coverage.

In addition to carrying proof of insurance, Texas drivers must also present it when registering their vehicle, obtaining or renewing a driver's license, and during the annual vehicle inspection. When you purchase an insurance policy, your insurance company will provide you with insurance cards to keep in your vehicle.

Types of insurance coverage

Texas law requires all drivers to have adequate car insurance. The minimum insurance coverages are $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. This is referred to as 30/60/25 coverage. While these are the minimums, they may not cover all the costs of recovery and repairs if you're in an accident.

There are eight basic auto insurance coverages. Liability coverage is the only type that's legally required in Texas. It covers the medical expenses and property damage of the other driver in an accident where you are at fault. It also covers the injured party's lost wages, pain and suffering, and the cost of a rental car while their vehicle is repaired.

Collision coverage pays for damage to your car after an accident, regardless of who is at fault. If you're financing the purchase of a new car, a lender will require you to have collision coverage.

Comprehensive coverage is similar to collision coverage but covers the cost of repairing or replacing your car in non-collision incidents, such as theft, vandalism, hail, or other weather events.

Uninsured/Underinsured Motorist coverage will pay out damages for bodily injury and property damage if you're 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 don't have it, so this coverage can be a good idea.

Personal Injury Protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers' medical bills, as well as lost wages and other non-medical costs. All auto policies in Texas include PIP coverage, but you can refuse it in writing if you don't want it.

In addition to these common types of coverage, there are several other optional coverages available, including:

• Medical payments coverage
• Rental car reimbursement
• Roadside assistance
• Loan/lease payoff (or gap coverage)
• New-car replacement insurance
• Full glass coverage
• Rideshare insurance
• Mechanical breakdown coverage
• Custom parts and equipment value coverage
• Classic car insurance
• Business or commercial auto insurance

Optional insurance coverages

Collision Coverage

This pays for repairs or replacement of your car after an accident.

Comprehensive Coverage

This pays for damage to your car from non-collision incidents, such as theft, fire, floods, or vandalism. Comprehensive coverage is mandatory if you still owe money on your car.

Uninsured/Underinsured Motorist Coverage

This covers your medical treatment, auto damage, lost wages, pain and suffering, and other expenses if the driver who caused the accident doesn't have enough insurance or doesn't stop. This type of coverage is mandatory and must be offered by insurance companies. However, you can opt out of it by notifying your insurance company in writing.

Medical Payments Coverage

This pays your medical bills if you're injured in an accident. It also covers you if you're hurt while riding in someone else's car or while walking or biking.

Personal Injury Protection (PIP) Coverage

PIP coverage is similar to medical payments coverage but also includes lost wages and other non-medical costs, such as the cost of a caregiver. All auto policies in Texas include PIP coverage, but you can opt out by notifying your insurance company in writing.

Towing and Labor Coverage

This covers the cost of towing your car if it can't be driven and pays for labor for services like changing a flat tire or jump-starting your battery.

Rental Reimbursement Coverage

If your car is stolen or being repaired after an accident, rental reimbursement coverage pays for you to rent a car or use taxis or ride-hailing services.

Penalties for driving without insurance

Texas has strict penalties for driving without insurance, and with an estimated 2 million uninsured drivers on the roads, the state is keen to enforce them.

First Offense

For a first-time offender, the penalties include fines ranging from $175 to $350. A license renewal surcharge of $250 per year for three years is also imposed, and you will likely face increased premiums when you do get insurance because you will be considered a high-risk driver. An SR-22 requirement is also imposed, which means you will have to file an SR-22 form for three years after the accident, and your vehicle registration and license will be suspended for up to two years.

Repeat Offenses

For a second or subsequent offense, the penalties are more severe. Fines range from $350 to $1,000, and the license renewal surcharge remains at $250 per year for three years. Again, you will face higher insurance premiums when you do get insurance. Repeat offenders will also have to file an SR-22 form, and their vehicle registration and/or driver's license may be suspended. The vehicle can be impounded for up to 180 days, at a cost of $15 per day, totalling $2,700.

Accidents

If you are in an accident and do not have insurance, you will be liable for all damages. This means that those involved in the accident could take legal action to claim compensation from your personal assets. You will also receive a ticket for driving without insurance, and your vehicle may be impounded.

If you are responsible for a collision that results in serious injuries or death, the penalties are even higher. You face a fine of up to $4,000 and up to one year in jail.

TexasSure

Texas has an electronic database system called TexasSure, which connects your insurance information to the DMV. If your policy lapses, your insurance company will automatically notify the DMV, and you will be required to provide proof of insurance within 10 days.

Costs of Driving Uninsured

The average cost of car insurance in Texas is $691 per year for a minimum coverage policy. After a lapse in coverage, the average annual rate increases to $756. Insurance companies will consider you a high-risk driver, which will result in higher premiums.

Texas Law

Texas law requires drivers to show proof that they can pay for any accidents they may cause. Most drivers do this by purchasing auto liability insurance. The minimum coverage requirements are $30,000 per injured person and $60,000 per accident for bodily injury, and $25,000 for property damage. This is often referred to as 30/60/25 coverage.

Frequently asked questions