The Texas Auto Insurance Requirements Guide: What Are The Minimums?
When traveling along I69, through Downtown, or on one of Brownsville’s more scenic routes, you need auto insurance before you hop on the road. Texas auto insurance requirements specify a minimum amount of auto insurance. Car insurance protects you from major costs if you cause a car accident. But how much is enough? And what happens if you’re underinsured?
In this guide, we’ll explain Texas car insurance laws and minimum requirements. We’ll also go into the penalties for driving without car insurance, more options for car insurance, and the cost of car insurance in Texas.
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Car Insurance Laws in Texas
Although Brownsville is walkable in many areas, having a car is essential to life here. Whether visiting Boca Chica Beach or the SpaceX “Starbase,” no one expects to get into a car accident, but it’s always better to be prepared. In fact, as in any other Texas city, Texas car insurance laws require you to purchase liability car insurance before driving.
Some of the other Texas car insurance laws include:
- You must carry proof of insurance when you drive. If asked by an officer, you must show proof of insurance or face penalties and fines.
- For teenage drivers, you have two options: add them to your coverage or buy them a separate policy. You must tell your insurance company when your teenager starts to drive or turns 16. If you don’t, the insurance company will likely bill you for the premium you should have paid.
- It’s important to know that you have rights too. Your car insurance cannot turn you down for your race, religion, color, nation of origin, among many other factors. For more information, check out the Texas Department of Insurance.
- If you get into a car accident, you must file a police report if there are any bodily injuries, if the damage is over $1,000, or if one of the drivers is uninsured.
Texas Car Insurance Minimum Requirements
Although there are varying levels of car insurance to choose from, Texas car insurance laws require a minimum level of liability insurance. This coverage helps pay for the other party’s expenses if you are at fault in a car accident. Texas is considered a fault state because the person who caused the accident is responsible for covering the damage.
Per Texas auto insurance requirements, the minimum coverage you must purchase is:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident (if more than one person is injured)
- $25,000 for property damage
This is often referred to as 30/60/25 coverage. This type of coverage is quite low, especially if you get into an accident with multiple vehicles. If your policy doesn’t pay for everything, you may be required to cover the rest of the bills.
Minimum Insurance Requirements in Texas for a Leased Vehicle
If you’re leasing or renting a vehicle in Texas, the minimum insurance requirements are the same: that you have liability insurance that covers $30,000 for bodily injury per person up to $60,000 per accident and $25,000 for property damage.
However, it’s very likely that the leasing company will likely have separate rules. Most leasing companies require full coverage insurance with comprehensive and collision coverage. Some also require gap insurance, which covers the difference between the car’s actual cash value and the amount you owe on the lease if the car is totaled or stolen.
Liability Insurance in Texas
According to car insurance laws in Texas, every driver must have liability insurance at the very least. Liability insurance does not cover your own vehicle repairs or medical costs. You would need additional coverage like collision or comprehensive insurance for that. Instead, liability insurance covers damage that you cause if you are at fault in an accident.
Liability insurance in Texas covers bodily injury and property damage. Bodily injury refers to any sort of medical expenses, lost wages, and legal costs for the other driver and passengers. Property damage covers repairs or replacement costs for the damaged vehicle or other property (like fences or buildings).
If you don’t carry at least the minimum liability coverage in Texas and you are caught driving, you will be subject to fines, penalties, and possibly suspension of your driver’s license.
Penalties for Driving Without Car Insurance in Texas
Texas takes the issue of uninsured drivers seriously. The state enforces mandatory liability insurance. If caught without the minimum car insurance, you may face the following penalties:
- Fines:
- First offense: Fines ranging from $175 to $350
- Subsequent offenses: Fines from $350 and $1,000, plus additional fees
- A surcharge of $250 per year when you register your vehicle, for up to 3 years
- Driver’s license suspension: Your driver’s license may be suspended if you cannot provide proof of insurance when requested or if you’re involved in an accident without insurance.
- Vehicle impoundment: Your vehicle could be impounded if you’re caught without insurance. To retrieve it, you’ll have to pay impound fees and provide proof of insurance.
- SR-22 certificate: After being convicted of driving without insurance, you’ll have to fill out an SR-22 form with the Texas Department of Public Safety, which proves you have insurance. The SR-22 requirement can last for two years and can significantly raise your insurance premiums.
More Options for Texas Car Insurance
While the minimum Texas auto insurance requirements require liability coverage, you can purchase additional types of insurance to better protect yourself when driving. Here are more options for Texas car insurance:
- Collision coverage: Covers the cost of repairing or replacing your car after a collision with another vehicle or object, regardless of fault. Often required if you have a car loan or lease.
- Comprehensive coverage: Protects against non-collision events, like theft, vandalism, weather damage, or hitting an animal. Usually required by lenders.
- Uninsured/underinsured motorist coverage: Covers you if you’re in an accident caused by a driver with little to no insurance.
- Personal injury protection (PIP): Covers medical expenses and lost wages for you and your passengers. Insurers are required by Texas car insurance laws to offer at least $2,500 in PIP coverage, but you can reject it in writing.
- Medical Payments coverage (MedPay): Like PIP, but limited to medical bills.
- Gap insurance: Covers the difference between what you owe on your car loan and the vehicle’s cash value.
- Roadside assistance: Provides help for common issues like flat tires, dead batteries, lockouts, or towing if your car breaks down.
- Rental reimbursement: Pays for a rental car while your car is being repaired after a covered accident.
Good Car Insurance Companies in Texas
There are several good car insurance companies in Texas to choose from. The best one will differ based on your individual needs. State Farm, Farmers Insurance, Allstate, and Texas Farm Bureau all have local agents, but you can still get insurance from other national companies.
When looking for a good insurance company, you’ll want to consider the following:
- Rates: Compare quotes from multiple providers to look for the best price. However, the cheapest insurance won’t necessarily be the best.
- Coverage options: Make sure the insurer offers all the coverage types you need.
- Discounts: Many companies offer discounts for bundling policies, safe driving, good students, and more.
- Customer service: Look at reviews for claims satisfaction and customer service quality.
Least Expensive Texas Car Insurance Companies
The least expensive Texas car insurance companies depend on a number of factors, such as the type of car you drive, your age, driving record, and more. The best way to find affordable car insurance is to compare quotes from several providers.
You can save money if your car has airlocks, antilock brakes, and antitheft devices. You can also save money by choosing a higher deductible. This will lower your premiums. However, it also means you will pay more out of pocket if you’re at fault in an accident.
Is Texas a No-Fault Car Insurance State?
No, Texas is not a no-fault car insurance state. Texas operates under a fault-based or tort insurance system. This means that in the event of a car accident, the driver at fault is responsible for covering the costs of the other party’s damages.
While Texas is a fault state, drivers do have the option to purchase additional coverage like PIP, which covers your medical expenses regardless of who’s at fault.
How Much Does Car Insurance Cost in Texas
The cost of car insurance in Texas depends on a number of factors, with the type of coverage you choose being a major one. Liability insurance will always cost less than full coverage insurance. The average cost for full coverage insurance in Texas ranges between $1,750 to $2,000 per year. In comparison, minimum liability insurance typically costs between $600 and $700 per year.
Other factors that affect the cost of your car insurance include:
- Age: Younger drivers, especially teens, tend to pay the highest premiums because of their lack of experience. Rates usually decrease as drivers reach their 30s and 40s, and may increase again after age 65.
- Driving history: If you have a clean driving record, you’ll likely have much lower rates. Accidents, tickets, and DUIs can all lead to increases to your premiums.
- Location: Where you live can have a large impact on the cost of your car insurance. Urban areas like Houston, Dallas, and San Antonio tend to have higher rates due to more traffic, higher accident risks, and higher crime rates. Rural areas, on the other hand, tend to have lower premiums.
Texas Auto Insurance Requirements Conclusion
The Texas auto insurance requirements exist to protect you and other drivers from the financial impact of a car accident. At a minimum, you must purchase a liability policy. However, to really be protected, you’ll want to consider a full-coverage policy.
If you’ve been in an accident or simply need a new car, come check out Tipton Hyundai. We’re family-owned and customer-driven, which is why we’re the Brownsville choice for a new or used Hyundai. Our dealership is in Brownsville, TX but we can deliver to anywhere in the state or country! In fact, if you buy from us, we’ll pay for your gas! That’s true whether you come from Austin, Dallas, McAllen or Pharr. Come check out our showroom to see our great selection of Hyundais. We can also help you if you’re looking for a tire shop or an oil change!
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