The Texas Car Insurance Requirements Guide: What Are the Minimums?
Texas car insurance requirements aren’t just rules—they’re there to keep you financially protected on the road. The state sets minimum coverage limits for bodily injury and property damage to help cover costs if you’re in an accident. Knowing what’s required and when extra coverage might be a smart move can save you from costly surprises.
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Texas Car Insurance Requirements
Car insurance laws in Texas require drivers to carry minimum liability coverage to cover costs if they cause an accident. The required limits include $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage. These amounts help pay for the other driver’s expenses when you’re at fault. While these limits meet state requirements, they may not fully cover damages in serious accidents. Drivers can choose higher coverage amounts for better financial protection.
Texas Car Insurance Laws
Texas car insurance laws go beyond just minimum coverage requirements. Drivers must maintain continuous insurance coverage on registered vehicles, even if the car isn’t being driven. Cancelling insurance without surrendering license plates can result in fines, vehicle impoundment, and registration suspension.
Additionally, Texas uses the TexasSure database, allowing law enforcement and state agencies to verify insurance status electronically. If you’re caught driving without proof of insurance, drivers can face fines, license suspension, and surcharges.
Minimum Insurance Requirements in Texas for a Leased Vehicle
In Texas, the minimum insurance requirements for a leased vehicle typically exceed the state’s standard liability coverage. Leasing companies generally require drivers to carry comprehensive and collision coverage, which protects the vehicle regardless of fault. They may also mandate higher liability limits, commonly referred to as the 100/300/50 rule—meaning $100,000 for bodily injury per person, $300,000 per accident, and $50,000 for property damage. Additionally, gap insurance is often required to cover the difference between the vehicle’s value and the remaining lease balance if the car is totaled. Reviewing your lease agreement ensures you meet all insurance obligations.
Liability Insurance in Texas
Liability insurance is mandatory in Texas. If you’re found at fault in a car accident, you’ll be responsible for covering the cost of the other driver’s vehicle repairs and any medical expenses resulting from their injuries. This financial responsibility makes liability insurance essential for legal driving in the state.
Keep in mind that liability insurance only covers the other party’s damages. It won’t pay for repairs to your own vehicle, your medical expenses, or a rental car while your vehicle is being fixed. Unless you can afford to cover such costs out of pocket or have a backup vehicle, minimum liability limits might not be enough. Consider purchasing additional coverage to reduce your financial risk in the event of an accident.
Penalties For Driving Without Car Insurance in Texas
- First Offense: Fines range from $175 to $350, plus court costs. Additional fees may apply from the Texas Driver Responsibility Program.
- Subsequent Offenses: Fines increase to $350 to $1,000, along with possible vehicle impoundment and license suspension.
- SR-22 Requirement: You may be required to file an SR-22 form, proving you have insurance, for up to two years.
- Vehicle Impoundment: If caught repeatedly, law enforcement can impound your vehicle until proof of insurance is provided.
- License Suspension: Driving privileges can be suspended for repeat offenses or accidents involving uninsured drivers.
Is Texas a No Fault Car Insurance State?
Texas is not a no-fault car insurance state. It follows a “fault” system, meaning the driver responsible for causing an accident is liable for damages. Drivers in Texas must carry minimum liability insurance to cover injuries and property damage if they are at fault.
Car Insurance Companies in Texas
Some of the best car insurance companies in Texas include State Farm, USAA (for military families), Geico, and Progressive. These insurers are known for strong customer service, reliable claims processes, and a range of coverage options. Allstate and Farmers also have good reputations for personalized policies and local agents.
To see which companies have the best ratings, check websites like J.D. Power, AM Best, and Consumer Reports. These sources rank insurers based on customer satisfaction, financial stability, and claims handling. Texas Department of Insurance also provides information about company complaints and performance.
Least Expensive Texas Car Insurance Companies
Some of the least expensive car insurance companies in Texas include State Farm, Geico, and USAA. These companies often offer competitive rates, especially for drivers with clean records. Progressive and Allstate also provide affordable policies with customizable coverage options. However, the cheapest insurance isn’t always the best choice. Lower premiums might mean higher deductibles, limited coverage, or poor customer service. It’s important to balance affordability with reliability and coverage options.
Look for an insurer with a strong claims process, good customer reviews, and 24/7 support. Discounts for safe driving, bundling, or multi-vehicle policies can also make a quality policy more affordable. Financial stability is another key factor—choose a company known for paying claims on time. Cheap insurance isn’t worth it if you’re left without proper protection when it matters most.
Filing a Car Insurance Claim in Texas
Filing a car insurance claim in Texas doesn’t have to be super stressful if you know what to expect. Here’s a simple breakdown of the process:
- Report the Accident: Call the police if there are injuries or significant damage. In Texas, you’re legally required to report accidents with damage over $1,000 or involving injuries.
- Document the Scene: Take pictures of the vehicles, license plates, damages, and the surrounding area. Exchange insurance and contact information with the other driver(s).
- Contact Your Insurance Company: Notify your insurer as soon as possible. Provide details about the accident and share any photos or reports you’ve collected.
- File the Claim: Your insurer will guide you through filing the claim, including determining fault and coverage details. Be honest and thorough with your statements.
- Work With the Adjuster: An insurance adjuster will assess the damage and estimate repair costs. They’ll contact you if more details are needed.
- Get Repairs Done: Once the claim is approved, take your car to a trusted repair shop. If you have rental car coverage, arrange a rental while your vehicle is being fixed.
- Stay Informed: Follow up with your insurance company throughout the process. Keep records of all communications, estimates, and receipts.
How Much Does Car Insurance Cost in Texas?
Car insurance costs in Brownsville, TX, can be higher than the state average due to its dense traffic and accident rates. On average, minimum liability coverage costs between $600 and $900 per year, while full coverage with collision and comprehensive typically lands around $2610 annually, depending on your driving history and vehicle type. Insurance rates also depend on factors like age, credit score, and mileage. Drivers with clean records can qualify for discounts, while younger drivers or those with past violations may pay more. Adding safety features or bundling policies can help lower premiums.
Since Brownsville is near the U.S.-Mexico border, some insurers offer cross-border coverage if you frequently drive into Mexico. Comparing quotes and asking about local-specific coverage options can help you find the best policy at the right price.
More Options for Texas Car Insurance
Here are additional car insurance coverage options in Texas that provide extra financial protection beyond the state’s minimum requirements:
- Collision Coverage: This pays for repairs to your vehicle after an accident, no matter who caused it. If you hit another car, a pole, or even slide on ice, collision coverage can help pay for the damage.
- Comprehensive Coverage: This covers damage caused by things other than accidents, like theft, vandalism, fire, or natural disasters. If a tree falls on your car or it gets stolen, comprehensive coverage has you covered.
- Uninsured/Underinsured Motorist: If you’re hit by someone without insurance or with too little coverage, this helps pay for your repairs and medical bills. It’s especially useful since not everyone follows the law and carries insurance.
- Gap Coverage: If your car is totaled and you owe more on your loan or lease than the car’s value, gap coverage covers the difference. This can save you from making payments on a car you no longer have.
- Medical Payments Insurance: This helps pay for medical expenses for you and your passengers, regardless of who caused the accident. It’s useful even if you already have health insurance, as it can cover out-of-pocket costs like deductibles.
- Personal Injury Protection (PIP): Similar to medical payment coverage but more comprehensive. It covers medical expenses, lost wages, and even services like childcare if you’re unable to work after an accident.
- Rental Car Reimbursement: If your car is in the shop after an accident, this coverage pays for a rental car so you can keep moving without extra expenses.
- Roadside Assistance: If your car breaks down, roadside assistance can help with towing, fuel delivery, jump-starts, lockouts, and even flat tires. It’s like having a helping hand whenever you need it.
The Texas Car Insurance Requirements Conclusion
Understanding Texas car insurance laws can help you stay protected and avoid expensive surprises. While meeting the minimum requirements is necessary, having the right coverage can make a huge difference when life throws the unexpected your way.
At Boggus Tipton, we’re here to help with more than just car shopping. If you have questions about insurance or anything else while choosing your next vehicle, we’re happy to help. Stop by or reach out—we’re here to make your car-buying experience easy and stress-free. We’re in Brownsville but we serve the entire state including Pharr, Weslaco, Harlingen, and even San Antonio and Austin. Whether you need a new car, an oil change, or 4×4 accessories, we can help!
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