When deciding on how much auto insurance to purchase, it is important to consider car insurance laws. Car insurance laws can be complex and sometimes difficult to understand. Drivers who do not follow the law could face severe penalties.
Knowing the laws of Texas can save you money, time and headaches when you’re getting ready to drive your car.
Texas car insurance laws
The Texas Department of Insurance states that Texas law requires drivers to have liability car insurance. They must also show proof of insurance to police officers if they ask. If you owe money, lenders will require comprehensive and collision coverage.
Texas has the following car insurance laws:
- Drivers must have and keep liability insurance. They should also carry proof of the insurance and provide proof to police officers upon request.
- Or you could face paying back-premiums, denials or non-renewal.
- A police officer must file an accident report for any accident that results in injuries or property damage exceeding $1000 or if the driver is not insured. If possible, it is a good idea to contact the police immediately after an accident to exchange information about insurance with the other driver and take photographs of the accident scene. You could be subject to stiff penalties, including jail time, if you leave an accident site that has caused injuries or damages.
- It is illegal for you to file fraudulent insurance claims.
Texas Liability Insurance
Liability insurance is required in Texas. This means that if you are involved in a car accident and are at fault, you can at most pay for the repair of the vehicle and/or injuries to the other party.
Minimum liability is required for coverage of 30/60/25
- Bodily Injury Liability: $30,000/person and $60,000/accident
- Property damage liability: $25,000 per accident
This coverage provides the minimum coverage, but does not cover your vehicle or your bodily injury, or funds to rent a vehicle while it is being repaired. Liability insurance does not provide enough coverage unless you have a spare vehicle or funds to replace your car. Additional coverage is recommended if the minimum liability amount does not cover all costs.
Is Texas a state of no-fault?
Texas is a state that has at-fault accidents. Drivers must accept responsibility for and pay for any accident for which they are deemed to be responsible. An injured party can file a claim for “first party” with their insurance company or with the insurance company of another driver. A personal injury lawsuit may also be filed in court.
Driving without Texas insurance can result in severe penalties
It is important to keep your Texas car insurance current. The penalties for being caught without insurance are severe. You could be issued a ticket if you’re stopped by police without insurance. You could face a fine of up to $1000 and your license may be suspended. High-risk drivers will also need to file an SR-22 certificate. This can lead to suspension of registration and/or impoundment. High-risk drivers often pay higher premiums, and are more difficult to find an insurance company that will cover them.
You could also be held responsible for any injuries or vehicle damage caused by an accident.
Texas offers additional auto insurance options
Texas offers many additional insurance options that provide additional coverage for drivers and additional services in case of an accident. Additional coverage can provide you with peace of mind, protection and security for your assets and personal property.
There are also other insurance options:
- Collision- This protects against damage that is caused by collisions with other vehicles or objects.
- Comprehensive- This policy covers vehicle damage caused by non-collisions (e.g. Theft, vandalism, or weather-related events.
- Gap Insurance – This covers any difference between the amount you owe on your loan and the car’s cash value in the event of an accident or total loss.
- Personal injury Protection (PIP – This covers your medical bills as well as lost wages and other non-medical expenses. PIP coverage is included in all Texas policies. However, you can opt out of it by writing.
- Medical payments – These are your medical expenses while you ride in a car, walking or biking with someone else.
- Rental Car Insurance – This covers the rental cost of your vehicle while it is being repaired or serviced.
- Roadside Assistance- Offer assistance during a breakdown (e.g. Labor to change a tire, jump start a battery, or provide a tow truck.
- Uninsured/Underinsured Motorist – Covers your injuries if you are harmed by another driver who is not insured, is underinsured or a hit-and-run. Texas policies include a $250 deductible.
Questions frequently asked
Which Texas insurance company is best?
The best Texas car insurance company will vary based on your specific car insurance needs. It’s important to compare quotes from different companies and consider discounts. Also, you should take into consideration ratings from J.D. Power and AM Best
Which Texas insurance company offers the best car insurance?
The type of policy you choose will determine the lowest car insurance company in Texas. It’s worth looking at rates from multiple companies to compare the cost of full coverage. You may also find that the cheapest car insurance company is not always the best. There are many discounts available to lower your premiums.
What is the cost of Texas car insurance?
Texas’ average annual car insurance cost is $496 for minimal coverage and $1800 for complete coverage. This is nearly identical to the U.S. average $1,738 per year for full coverage.