Texas Auto Insurance: Understanding The State's Mandatory Coverage

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 often referred to as 30/60/25. While this is the minimum required by law, it is recommended that drivers purchase more than the minimum liability limits to protect themselves financially in the event of an accident.

Minimum insurance requirements

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 at fault in an accident.

The minimum insurance requirements in Texas are as follows:

• Bodily injury liability coverage per person: $30,000
• Bodily injury liability coverage per accident: $60,000
• Property damage liability coverage per accident: $25,000

These requirements are often referred to as 30/60/25 coverage. While these are the minimum requirements, it is important to note that they may not be sufficient to cover all costs in the event of a serious accident.

In addition to the above, Texas law also requires Personal Injury Protection (PIP) and Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage to be automatically added to all insurance policies. However, it is possible to decline these in writing.

While liability insurance is the only coverage that is legally required in Texas, there are several other types of optional coverage that you may want to consider adding to your policy for added protection. These include:

• Collision coverage: Pays for damage to your vehicle caused by a collision with another vehicle or object.
• Comprehensive coverage: Covers damage to your vehicle caused by non-collision incidents such as theft, fire, vandalism, or extreme weather events.
• Uninsured/Underinsured Motorist coverage: Protects you in the event of an accident caused by a driver who does not have insurance or whose insurance limits are not sufficient to cover the damages.

Liability coverage

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. This type of insurance pays to repair or replace the other driver's car or other damaged property, and it also covers other people's medical expenses when the policyholder is at fault in an accident.

In Texas, drivers are required 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 called 30/60/25. However, it is worth considering purchasing more than the minimum liability coverage, as the cost of car repairs and medical care can be high, and the minimum amounts might not be sufficient to cover all the costs if the policyholder is at fault in an accident. If the policyholder does not have enough liability coverage, they may have to pay the remaining expenses out of their own pocket, and the other driver could sue them.

Liability insurance does not cover the cost of repairing or replacing the policyholder's car or their own medical expenses. For this, additional types of coverage are available, including collision coverage and comprehensive coverage.

Collision coverage

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. The minimum coverage required by Texas law is $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 known as 30/60/25.

While collision coverage is not required by Texas state law, it is an important type of coverage to consider. It is an optional type of insurance that pays for the cost of repairing or replacing your vehicle after a traffic accident, regardless of who was at fault.

If you own your vehicle outright and choose not to carry collision coverage, you will be responsible for the cost of repairs or replacement if you are involved in an accident. Collision coverage is typically available for most vehicle types, including cars, motorcycles, boats, and RVs.

The cost of collision coverage can vary depending on personal factors such as age, gender, and driving record, as well as details about the vehicle and where you live within Texas. The average cost of collision coverage in Texas is $344.85 per year, but prices can range from under $200 to over $500. Collision coverage usually includes a deductible, which is the amount you pay each time you file a claim, typically ranging from $500 to $1,500.

When deciding whether to purchase collision coverage, consider the value of your vehicle, your ability to pay for repairs or replacement out of pocket, and whether your vehicle will be in storage for an extended period. Collision coverage can provide peace of mind and financial protection in the event of an accident.

Comprehensive coverage

The cost of comprehensive coverage varies depending on individual factors, including age, gender, marital status, driving record, vehicle type, and place of residence within the state. In Texas, the average annual cost of comprehensive coverage is $183.57, with rates ranging from under $150 to over $250. While comprehensive coverage is not mandatory, it is worth considering to ensure you are adequately protected in the event of unforeseen circumstances.

When deciding on comprehensive coverage, it is important to evaluate your vehicle's value, driving habits, and financial situation. If the cost of comprehensive and collision coverage exceeds 10% of your car's value, it may not be necessary. Additionally, consider the likelihood of accidents or sustaining damage based on your driving frequency and commute distance.

Uninsured/underinsured motorist coverage

You can typically purchase uninsured/underinsured motorist coverage in $5,000 increments, and it is recommended to add enough property damage coverage to replace your vehicle. While insurance companies are required to offer this coverage when you buy auto insurance in Texas, you must explicitly decline it in writing if you do not want it.

Frequently asked questions