In Texas, the law requires that all drivers purchase and maintain a minimum level of insurance to legally operate a vehicle on public roads.
The minimum coverage required is $30,000 for each injured person, $60,000 per accident, and $25,000 for property damage.
If you are caught driving without insurance, you could face severe penalties, including a fine of up to $500, suspension of your driver's license, and even jail time.
Texas car insurance requirements exist to protect drivers and passengers on the road. However, if you are involved in an accident and have state minimum liability coverage, it would only cover damages & injuries to the other party—if the driver is found to be at fault. Injuries to the customer & damages to their vehicle would only be included if they're carrying additional coverages.
Texas Car Insurance Requirements: Types of Coverage
While buying the minimum level of coverage is technically legal, it is not always the best idea.
For example, suppose you are involved in an accident, and the other driver does not have insurance or does not have enough insurance to cover the cost of damages. In that case, you could be held responsible for paying out of pocket.
If you want to protect yourself, it is good to purchase more than the minimum level of coverage.
There are eight types of insurance coverage that you can buy in Texas:
#1: Liability Coverage
This type of insurance will pay for the damages you cause to another person's vehicle or property in an accident. It will also cover any medical expenses or funeral expenses incurred by the other party due to the accident.
#2: Collision Coverage
This will help you cover the damages to your vehicle, regardless of who is at fault for the accident. It can be purchased even if the customer owns the vehicle and will cover the damages regardless of if they owe money on it. Collision coverage also has a deductible.
#3: Comprehensive Coverage
This type of insurance pays for any damage to your vehicle that is not caused by accident, such as theft, vandalism, or weather damage. However, you will have to pay a deductible before your insurance company reimburses you for the damages.
#4: Medical Payments Coverage
This type of insurance is used to cover the medical costs of you or your passengers in the case of an accident. Additionally, you can use this coverage if you’re injured while riding in someone else’s vehicle while walking, or while riding a bike.
#5: Personal Injury Protection (PIP) Coverage
This type of coverage protects you from other non-medical “injuries” after an accident — like lost wages for example.
#6: Uninsured/Underinsured Motorist Coverage
This type of insurance will pay for the bodily injury and property damages to your vehicle that an uninsured or underinsured driver causes.
#7: Towing and Labor Coverage
If your car is disabled if you have a flat, or if you need a jumpstart, towing and labor coverage will cover the costs of the service or labor needed to get you back on your feet.
#8: Rental Reimbursement Coverage
There may be a situation where you need to rent a vehicle while yours is undergoing repairs — or being located after being stolen. Rental reimbursement coverage will pay you back for the cost of the rental.
Texas Auto Insurance Requirements: Proof of Insurance
You must be able to provide proof of insurance to law enforcement if you are stopped or if you are involved in an accident.
The best way to do this is to keep your insurance card in your glove compartment. You can also show proof of insurance electronically on your phone, but make sure that the app is up-to-date and has the most recent information.
If you cannot provide proof of insurance, you could be ticketed, and your vehicle may be towed.
Texas car insurance requirements are in place to protect drivers and passengers on the road. If you are involved in an accident, your insurance will cover the cost of damages to both your vehicle and the other party's vehicle and any injuries that may have been sustained.
At LOOP can help you find the perfect policy to meet Texas car insurance requirements and protect you and your loved ones. We never do credit checks, so applying is easy, and our policies are always fair. Contact us today to get started!
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