Everything You Need to Know About Texas Vehicle Insurance

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If you own a vehicle in Texas, you are required to have auto insurance. Texas has a minimum coverage requirement, but it’s important to understand your coverage options and how they can protect you in case of an accident.

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Types of Coverage

There are several different types of auto insurance that you can purchase in Texas, including:

Type of Coverage
Description
Bodily Injury Liability
Covers expenses related to injuries or death that you cause to another person in an accident.
Property Damage Liability
Covers damage you cause to another person’s property in an accident.
Personal Injury Protection (PIP)
Covers medical expenses and lost wages for you and your passengers, regardless of who caused the accident.
Uninsured/Underinsured Motorist
Covers expenses if you are hit by a driver who does not have enough insurance to cover the damages.
Collision
Covers damage to your own vehicle in case of an accident.
Comprehensive
Covers damage to your vehicle from non-collision events, such as theft or weather.

Bodily Injury Liability

Bodily injury liability insurance is required by law in Texas. If you are at fault in an accident and someone is injured or killed, this coverage will pay for their medical expenses, lost wages, and other expenses related to their injuries. It’s important to note that this coverage does not pay for your own injuries. If you want coverage for your own injuries, you will need to purchase personal injury protection (PIP) insurance.

The minimum bodily injury liability coverage required by law in Texas is $30,000 per person and $60,000 per accident.

It’s important to consider purchasing more than the minimum coverage if you have assets to protect. If you are sued for damages in excess of your insurance coverage, you could be held personally responsible for the difference. Talk to your insurance agent about your coverage options.

Property Damage Liability

Property damage liability insurance is also required by law in Texas. If you are at fault in an accident and damage someone else’s property, this coverage will pay for the repairs or replacement. The minimum property damage liability coverage required by law in Texas is $25,000.

Again, it’s important to consider purchasing more than the minimum coverage if you have assets to protect. If you cause an accident that results in damages that exceed your insurance coverage, you could be held personally responsible for the difference.

Personal Injury Protection (PIP)

Personal injury protection (PIP) insurance is not required by law in Texas, but it can be a valuable addition to your policy. This coverage pays for your medical expenses and lost wages if you are injured in an accident, regardless of who caused the accident. PIP also covers your passengers, and it can provide coverage for services like childcare and housekeeping if you are unable to perform these tasks due to your injuries.

The minimum PIP coverage required by law in Texas is $2,500, but higher limits are available. Talk to your insurance agent about your options.

Uninsured/Underinsured Motorist

Uninsured/underinsured motorist insurance provides coverage if you are hit by a driver who does not have enough insurance to cover the damages. This coverage can also provide protection if the other driver flees the scene of the accident or is uninsured.

The minimum uninsured/underinsured motorist coverage required by law in Texas is $30,000 per person and $60,000 per accident.

Collision

Collision insurance covers damage to your own vehicle in case of an accident. This coverage is not required by law in Texas, but it may be required by lenders if you are financing your vehicle.

If you have an older vehicle that is not worth much, you may want to consider dropping collision coverage to save money on your premiums. However, if you have a newer vehicle or a vehicle that is worth a lot of money, collision coverage can provide valuable protection.

Comprehensive

Comprehensive insurance covers damage to your vehicle from non-collision events, such as theft, vandalism, and weather. This coverage is not required by law in Texas, but it may be required by lenders if you are financing your vehicle.

If you have an older vehicle that is not worth much, you may want to consider dropping comprehensive coverage to save money on your premiums. However, if you have a newer vehicle or a vehicle that is worth a lot of money, comprehensive coverage can provide valuable protection.

FAQ

What is the minimum auto insurance requirement in Texas?

The minimum auto insurance requirement in Texas is:

  • $30,000 bodily injury liability coverage per person
  • $60,000 bodily injury liability coverage per accident
  • $25,000 property damage liability coverage per accident

What happens if I don’t have auto insurance in Texas?

If you are caught driving without auto insurance in Texas, you can be fined up to $350 for a first offense. Subsequent offenses can result in fines up to $1,000, suspension of your driver’s license, and impoundment of your vehicle.

Can I drive legally with just the minimum coverage?

Yes, you can drive legally with just the minimum coverage in Texas. However, it’s important to consider purchasing additional coverage if you have assets to protect.

What factors affect my auto insurance premiums?

Several factors can affect your auto insurance premiums, including your age, gender, driving record, credit score, the make and model of your vehicle, and the amount of coverage you choose to purchase.

How can I save money on my auto insurance?

There are several ways to save money on your auto insurance, including:

  • Shop around for the best rates
  • Bundle your auto insurance with other types of insurance, such as homeowner’s insurance
  • Increase your deductible
  • Drive a safe vehicle
  • Take a defensive driving course
  • Ask about discounts for good driving, multiple vehicles, or safety features

Talk to your insurance agent about other ways you can save money on your premiums.

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