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Texas Auto Insurance Policy Basics

It is very important for all Texas residents of legal driving age to understand some of the basics of Texas automobile insurance. Spend just a few moments to get acquainted with some TX auto insurance basics and then use our free Texas auto quote shopper to save some money!

When we talk about Texas we are speaking about one of the most populated states in the United States. Being one of the largest states means however, that the state at times can have an extremely high flow of cars on its rural roads, city streets and highways. Texas, like any other state has extensive requirements for automobile insurance. Like many states, in Texas it is mandatory for you to have automobile insurance at the time of registering your car at the Department of Motor Vehicles.

Car insurance in Texas has to cover damages caused to the vehicle in case of an automobile accident as well as medical expenses that can result from the wreck. In other words, the auto insurance policy must have liability coverage for both you and the other person since Texas is not a “no-fault” state. In Texas you must maintain an insurance policy for at least every vehicle you own (even if the vehicle is not in a working condition) and that insurance policy has to meet the following minimum requirements:

$20,000 for bodily injury or death to one person (the driver) at the time of the accident.

$40,000 for bodily injury or death to cover the combined expenses of every occupant in the car once the car was involved in an accident

$15,000 for destruction for property or damage (including the damage made to another party’s vehicle)

It is important to keep in mind that these figures are only the minimum amounts the state of Texas requires. Because of this additional risk one assumes by having a policy that only covers the “bare bones” required by Texas law: most companies recommend policies with $100,000 coverage for the driver, $300,000 in coverage for other occupants that might be in the vehicle and another $100,000 for destruction of property or damage to any other vehicles.

In Texas, a person that doesn’t own the car or has not paid-off the car will be required by the bank, a finance company or a dealership for them to have full comprehensive and collision insurance. What this coverage will do for you is pay for the repairs for the vehicle insured following an accident. This is required by the bank, finance company or dealership in order for them to be reimbursed for what still is partly their car in case of an automobile accident. Keep in mind that even if you already paid-off your car you can still get this coverage, however; it will increase your premiums drastically and it’s something one must think about before acquiring. Another thing to note is that if you are in an accident that is your fault or your vehicle is stolen, you might not be reimbursed by the insurance company.

The last two things that are important to understand about the basics of automobile insurance in Texas are drivers from other states and people that decide to drive without car insurance. Visitors from other states that are traveling through any road in the state of Texas must make sure that their insurance policies cover at least the minimum requirements listed above. This is important because you don’t want to be liable in the future for something you were unaware of. It is also imperative to mention that authorities in Texas are not too fond of drivers without auto insurance coverage. For first time offenders the state has a fine that can range from $150 to $350 and for second and third time offenders the fine becomes much larger. That third offense can also result in the impounding of your vehicle and the suspension of your driver’s license. One thing that most Texans don’t know is that from driving without car insurance they can also obtain a fine labeled “failure to maintain financial responsibility,” which falls under the category of “surchargeable violation.” This ugly fine will make the uninsured driver pay the fine once, and then pay an additional fee each year for up to three years.

Auto insurance requirements vary from state to state so it’s important to highlight that the above information is only the requirement for the state of Texas. Now that you know some Texas automobile insurance basics – be sure and save yourself some money on Texas car insurance and use our free TX insurance quote finder to compare quotes from top companies side by side. Get started finding Texas auto insurance now!

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