Texas Auto Insurance

In most states in America, auto insurance is a legal requirement, which protects all drivers on the road. However, obtaining and maintaining the legal and necessary types of car insurance can become quite expensive for some drivers.

If you are one of these drivers or simply want to make sure you are paying the best possible car insurance rates, try using an online price comparison tool to ensure you are paying the best premium rate possible. These tools enable drivers to compare many different car insurance companies, policies, and prices with ease.

Start comparing auto insurance rates now using the FREE online comparison tool above!

The following consumer guide will help you learn all that you need to know about buying auto insurance in Texas.

Minimum Car Insurance Requirements in the State of Texas

As with the majority of places in the United States, Texas law requires that drivers pay for any accidents that they cause. The most common way is to carry liability insurance.

While property damage liability covers the costs of repairing or replacing another party’s vehicle or other property, bodily injury liability pays for medical expenses incurred by the other parties as a result of an accident that you caused.

Additionally, liability insurance does not have a deductible and will only be paid to parties that you cause damage to.

If you decide to demonstrate your financial responsibility by purchasing an insurance policy, you must purchase the minimum amounts of insurance required by the state which are:

• $30,000 in bodily injury for each injured person
• Up to $60,000 in bodily injury for each accident when more than one party is injured
• $25,000 in property damage per accident

Although these insurance types and limits meet the Texas laws for car insurance requirements, many times they are not enough. Drivers should remember that liability coverage only pays for damages to someone else.

Liability will not pay for damages to your own vehicle or your own medical expenses. However, you can purchase additional types of insurance that will (keep reading for the additional types).

Drivers should also keep in mind that, at times, the cost of an accident may exceed the amounts of their liability insurance. In this type of circumstance, another party could sue the at-fault driver so that they can collect the amounts of damage that the driver’s liability insurance did not cover.

Texas: An At-Fault State

When it comes to auto insurance and car accidents, states are either no-fault states or at-fault states. Texas is an at-fault state, which means that when an accident happens, whoever suffers injuries has the right to file a claim.

Those injured in a car accident can file a first-party claim with their own car insurance company, they can file a third party claim with the other driver’s insurance carrier, and/or they can sue the other party in civil court to seek compensation for a variety of damages.

In comparison, no-fault states generally require each party to file a claim with their own insurance company after an accident no matter who is at fault. In addition, people who are injured have to meet certain criteria in order to be able to by-pass the no-fault system.

Uninsured/Underinsured Motorist Coverage in Texas

Texas does not legally mandate uninsured/underinsured motorist coverage. However, car insurance companies doing business within the state are legally required to offer it to their customers. In Texas, all types of this particular coverage come with a $250 deductible which will need to be paid if a claim is filed.

In Texas, 20 percent of drivers do not have car insurance coverage. If an uninsured or underinsured driver causes an accident, anyone whose property is damaged in the accident or anyone who is physically harmed in the accident may only be partially covered or not at all.

If included in your policy, uninsured or underinsured motorist coverage will pay on your behalf for any remaining bills that the insurance policy of the at-fault party cannot pay. This coverage is also used for hit-and-run accidents and can cover you as a pedestrian or a cyclist in an accident.

Consequences for Not Maintaining Auto Insurance in Texas

Texas car insurance laws are voter-enacted and in place to protect every driver on the road. Without car insurance, you can find yourself in legal and financial trouble, even if you do not get into an accident.

Not carrying auto insurance that satisfies the Texas car insurance laws can come with some very serious consequences.

Penalties for not having the proper car insurance include:

• A fine between $175 and $350 for a first offense
• Fines of $350 to $1,000, impoundment of your vehicle, and suspension of your driver's license for additional offenses
• For an offense without a valid driver’s license up to a $2,000 fine and/or 180 days in jail
• For causing an accident with serious injuries or death, you can face one year in jail, a $4,000 fine, or both

What is TexasSure?

TexasSure is a program that was established to verify that owners of vehicles in Texas have established financial responsibility. In most cases, this responsibility is verified by the driver having the minimum required amount of auto insurance.

The program helps to decrease the number of uninsured motorists in Texas and aims to decrease the nearly $1 billion spent on uninsured/underinsured motorist coverage by law-abiding drivers in the state.

This system provides users with up to date and accurate information regarding the insurance status of a vehicle and a driver. Also, the program enables Texas law enforcement officers to easily confirm whether a registered vehicle has the proper insurance in effect.

The TexasSure system can be accessed by vehicle registration offices, local police officers and departments, and the local Department of Public Safety.

Personal Injury Protection Coverage

Personal injury protection, also known as PIP or Med Pay, is not legally required in the state of Texas. However, car insurance carriers are required to offer at least $2,500 in PIP coverage to Texas drivers.

In most cases drivers can elect whatever amount they desire. If you choose to decline this coverage, Texas law requires you to do so in writing.

This type of coverage will protect everyone in the vehicle up to the selected policy limits. It covers necessary and reasonable medical expenses and lost wages. Under some circumstances, PIP will cover expenses for household help, such as nurses, that is necessary due to injuries sustained in an accident.

Collision and Comprehensive Coverages

Texas drivers need to remember that carrying only the minimum required amounts of car insurance could leave them in quite a bind if an accident were to happen. Financial binds can occur because liability coverage only applies to the other party's damages, not to yours.

While some drivers may choose to only have liability coverage due to the age or value of their car, most will want to strongly consider adding collision and comprehensive coverages.

Unless you can pay for your own car repairs or replacement, you should elect these coverages. Both have deductibles that the policyholder will select. The lower the deductible is, the higher the premium rate becomes.

Drivers should weigh their financial situations carefully when deciding what they want their deductible to be for both collision and comprehensive coverages.

If you lease your car or are still making payments on your car loan, your leasing company or bank will likely require you to carry comprehensive and collision coverage. This requirement protects all parties involved.

If you were in an accident and did not have these coverages, you may be responsible for paying off the rest of your loan or lease without any vehicle to show for it.

Collision insurance covers repairs to your vehicle if you are in an accident with another car, flip your vehicle, or hit another object such as a building or a light pole.

Comprehensive coverage provides for car repairs in other situations such as:

• Fire
• Flood
• Theft
• Vandalism
• Hail, wind, or other weather events
• Natural disasters
• Hitting an animal

When you file a comprehensive or collision claim, you will need to pay your deductible first before your auto insurance company pays the rest.

If you have questions regarding your car insurance coverage in the state of Texas, be sure to check with your vehicle insurance carrier or agent. You can also check with your local government offices. Remember that maintaining auto insurance is your responsibility as a driver in Texas.

To ensure that you are paying the best possible premium while maximizing your coverage amounts, consider using an online car insurance price comparison tool. These calculators make it easy to compare several different car insurance companies, their policies, and their premiums all in one place.

Start comparing auto insurance rates now using our FREE comparison tool below!