One of the questions we get quite often is, “What Type of Vehicle Insurance Coverage is Required in Texas?”
In addition, in the state of Texas, you’re required to pay for any accidents you cause. That’s why it’s critical to have the right amount of coverage. Thus, you are both looking for the required coverage, as well as what might be beneficial to you.
Whether you’ve recently moved to Texas or you’ve just acquired a new vehicle, if you’re wondering what type of vehicle insurance coverage is required in Texas, then this is the guide for you.
Discover the coverage you need to meet Texas car insurance requirements.
What Type of Vehicle Insurance Coverage is Required in Texas?
Some typical Texas auto insurance requirements include:
Minimum Liability Insurance
Texas requires that all vehicle owners possess a minimum of liability insurance. This includes $30,000 bodily injury coverage per person and $60,000 per incident. Property damage coverage is also required for at least $25,000 per each incident.
Burden of Proof of Financial Responsibility
You must also provide proof of insurance in the event of a car accident. You’ll also need it when you renew or register your vehicle or if you’re asked to present it by the police.
This proof of insurance is typically sent in the form of an insurance card by your insurance company. However, the state of Texas also allows you to present digital copies, so it’s okay to show your proof of insurance from your cellphone.
Exclusions with Most Texas Auto Insurance Requirements
Some exclusions or aspects that are typically covered by your car insurance policy include racing, intentional acts and named driver policies, which only cover those who are named on the policy.
Texas Auto Insurance Coverage Breakdown
Meeting Texas minimum auto insurance requirements starts with understanding what coverage you need. Some essential coverage drivers should have to meet Texas car insurance laws include the following.
Liability insurance is critical to have in the event of a car accident. It pays for car accident-related expenses, such as:
- funeral costs
- pain and suffering compensation
- car replacement or repair costs and car rental costs
- people driving your vehicle who have your permission, you, family members who are away attending college, the occupants of your car, such as family members or in-laws living with you in your home and even separated spouses.
Your liability insurance can even cover you in the event of an arrest following an accident for up to $250 in bail expenses. Texas minimum liability coverage laws require that you have at least have liability.
To cover collision costs or damage to your vehicle, the minimum insurance coverage in Texas for your policy is determined by your insurance provider if you still owe money on your car.
Texas vehicle insurance requirements for comprehensive coverage covers things, such as repair and replacement costs in the event of theft or fire damage.
Additional Medical Payments Coverage
Sometimes meeting the minimum required coverage isn’t enough. If you’re health insurance plan or auto insurance plan doesn’t fully cover the cost of all your healthcare needs related to a crash, then taking on an additional medical payments coverage plan may provide the extra financial help you’ll need. This type of plan even covers the funeral costs or medical bills of pedestrians or bicyclists involved in the accident.
Uninsured/Underinsured Motorist Coverage
If you’re involved in a hit-and-run accident or you find out the driver of the other vehicle does not have sufficient insurance or any at all, then uninsured/underinsured motorist coverage can help you cover unexpected costs.
These costs include bodily injury costs, such as disfigurement, lost wages or disability. It also covers property damage costs, including car rental expenses and vehicles repair costs. However, you are required to pay a minimum of $250 deductible in the event of property damage before the insurance company pays for the rest of the expenses.
While no Texas state minimum car insurance requirements exist for tow coverage, it’s still critical to consider this option in the event you are unable to move your vehicle if it breaks down or you need a new battery.
Rental Renumeration Coverage
There are no Texas minimum car insurance requirements for rentals. However, you’ll want to consider this in the event of theft or an unexpected event that results in damaging your vehicle, such as a fire.
Other Texas insurance requirements you may need to consider include commercial vehicle coverage. Texas commercial auto insurance requirements also must meet minimums.
Where Do Texas Car Insurance Laws Cover You
The states and countries Texas car insurance laws extend to include all states in The United States and Canada. However, since Mexico doesn’t recognize U.S. vehicle liability policies, you’ll need to get additional coverage should you decide to drive into Mexico.
How to Shop for Texas Auto Insurance
Always think about the type of coverage you need when shopping for Texas auto insurance. Also, consider who will drive the car and ask about what discounts you may qualify for.
Shopping for the minimum auto insurance coverage in Texas for standard vehicles may not be enough if you need commercial vehicle insurance as well. So, it’s important to consider all the vehicles you need to insure and the type of vehicles that require insurance so that you meet Texas insurance minimums.
What to Do After a Car Accident?
Ensure that everyone involved in the car accident is safe. Check for vehicle damage and contact the authorities. Also, call your car insurance company and exchange your insurance information.
Get Help with Texas Liability Insurance Requirements from Benchmark Today
Navigating Texas auto insurance laws doesn’t have to be complicated. With the right guidance, you can get sufficient automobile insurance to meet Texas minimum insurance requirements.