Auto Insurance Limits: Are Texans Covered Enough?

Texas law requires drivers to have a minimum of $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, known as 30/60/25 coverage. However, these minimum liability limits might not be enough to cover all the costs in the event of an accident. If the damages and injuries you cause exceed your liability coverage limit, you may have to pay the remaining amount out of pocket and could even be sued by the other driver.

Texas auto insurance minimums

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, as well as paying for other people's medical expenses if you are at fault in an accident.

In Texas, the minimum liability coverage required is $30,000 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. However, due to the high cost of car prices and medical care, the minimum amounts may not be sufficient to cover all the costs if you are at fault in an accident. Other drivers could sue you to collect the difference. Therefore, it is recommended to purchase more than the minimum liability coverage to protect yourself financially.

In addition to liability coverage, there are several other types of optional coverage that you may want to consider, such as collision coverage, comprehensive coverage, uninsured or underinsured motorist coverage, medical payments coverage, and personal injury protection. These coverages can help protect you financially in the event of an accident, regardless of who is at fault.

It is important to note that insurance requirements may vary from city to city within Texas, and it is your responsibility to ensure that you have the appropriate level of coverage for the area in which you are driving.

Liability insurance

The average cost of liability insurance in Texas is $80 per month or $960 per year, which is close to the national average.

If you are found driving without liability insurance in Texas, you will not go to jail, but you may face penalties such as fines of up to $1,100 and suspension of your driver's license.

Collision coverage

If you cause an accident, collision coverage will cover the following:

• Accidents involving another vehicle
• Collisions with objects such as a telephone pole, tree, fence, or guardrail
• Single-vehicle accidents, such as rolling your car
• Damage caused by road hazards, such as potholes

However, collision coverage does not cover the following:

• Damage to another vehicle
• Medical expenses for you or other parties
• Theft or vandalism damage
• Collisions with animals
• Damage caused by weather events, such as hail, fire, or flood
• Damage from fallen objects

If you want coverage for these events, you should consider comprehensive coverage in addition to collision coverage.

Comprehensive coverage

The average cost of comprehensive coverage among TGS Insurance customers in the state of Texas is $183.57 per year, with ranges from under $150 to over $250. The premium you pay will depend on personal details such as your age, gender, marital status, and driving record, as well as details about the vehicle you drive and where you live within your state.

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.

Uninsured/underinsured motorist coverage

In Texas, insurance companies are required to offer you uninsured/underinsured motorist coverage when you purchase a policy. If you do not want this coverage, you must inform the company in writing. This coverage is separate from your regular auto policy, which may include collision coverage that will pay for car repairs if the other driver is uninsured or underinsured. Your regular policy might also include medical payments and personal injury protection coverages, but these may not be sufficient if you have an expensive vehicle or require long-term medical care.

It's worth noting that Texas has a relatively high number of uninsured drivers, with approximately 1 in 12 drivers on the road without insurance. This coverage can provide valuable protection and peace of mind in case you are involved in an accident with one of these drivers.

Frequently asked questions