Texas Vehicle Insurance Coverage

Texas is known for being a large state, and with that comes a large number of roads and highways that Texas drivers use daily. Ensure you and your vehicle are properly insured with the appropriate Texas car insurance policy. Because Texas is a "fault" car accident state, drivers must demonstrate financial responsibility for any accident they may cause. The majority of Texas drivers accomplish this by purchasing car insurance, and state law require certain minimum levels of coverage.

Texas As A "Fault" State

Texas employs a " fault " system for liability for a car accident, and Texas employs a "fault" system. A "fault" system, according to the Texas Department of Insurance, requires drivers to "pay for the accidents they cause." Following an accident, an injured driver, passenger, or pedestrian may choose to file a "first-party" claim with their auto insurance carrier first. The injured person may also seek compensation from the other driver's insurance company by filing a "third-party" claim. Finally, an injured person may choose to go to court and file a personal injury lawsuit against the at-fault driver, seeking compensation for medical bills, property damage, pain and suffering, and other losses resulting from the accident.

Car Insurance Laws

You'll need proof of auto insurance in Texas if/when you:

• Obtain a vehicle inspection
• Register a vehicle
• Complete the necessary transactions for your driver's license.
• Are stopped by law enforcement

Driving without insurance in Texas can result in a fine of up to $1,000, plus surcharges to the annual driver's license fee. Avoid the headache and hassle by carrying at least the bare minimum of auto insurance coverage.

Types Of Insurance Coverage In Texas

While the state minimums are fairly straightforward, more insurance means more protection in the event of an accident, so understanding your coverage options beyond the state minimum requirements can be beneficial. Depending on the type and amount of insurance you have, your insurance company – or the at-fault driver's insurance company in the case of an accident you didn't cause – may pay not only for medical bills and car repairs but also for a rental car, court fees, and other costs. Knowing the various types of coverage can assist you in deciding what insurance to purchase and navigating the insurance system in the event of an accident.

Liability Coverage

As a Texas resident, your insurance policy must include two types of liability coverage: property damage and bodily injury.

• If you are found legally responsible for a covered accident, property damage protects your assets. It protects you against damage to another person's property or vehicle.
• If you are found legally responsible for a covered accident, bodily injury protects your assets, including certain expenses associated with bodily harm sustained by the other parties.

If you are sued due to a covered accident, liability coverage will pay for your legal defense costs.

Comprehensive Coverage

This type of Texas auto insurance coverage is used to repair your vehicle when it sustains physical damage due to an incident that is not a collision (subject to deductible). Theft, fire, vandalism, glass breakage, and animal contact are examples of such incidents.

Collision Coverage

This type of insurance will pay out the lesser of your car's actual value, the amount required to repair or replace it, or the amount listed on the insurance declaration page.

Uninsured/Underinsured Motorist

Protects you in the event of an accident in which the other party is at fault and either does not have insurance or has insufficient insurance limits to reimburse you for the damages caused.

• Property damage insurance may protect you if you are involved in an accident and the other party is at fault and uninsured/underinsured for damages to your vehicle and other covered property (subject to deductible).
• Bodily injury may protect you if you are involved in an accident and the at-fault party is either uninsured or does not have enough insurance to cover the costs of your bodily injury damages.

Although Texas does not require drivers to have uninsured and underinsured motorist coverage, it is good to include it in your policy. This type of insurance protects you if you are injured in an accident caused by an uninsured driver or have insufficient coverage to cover the damages.

Personal Injury Protection (PIP)

May reimburse eligible injured parties for a portion of wage loss, medical expenses, and essential services incurred due to an accident (i.e., passengers or pedestrians). When selecting medical benefits, this option may not be available.

Minimum Insurance Requirements In Texas

As previously stated, Texas requires drivers to show financial responsibility in the event of a car accident on the state's roads and highways. Most vehicle owners choose to meet this requirement by purchasing car insurance. When purchasing car insurance in Texas, the law requires that you have the following minimum amounts of liability coverage:

• $30,000 in bodily injury liability for each person injured in an accident caused by you.
• $60,000 for total bodily injury liability when you cause an accident that injures two or more people, and
• $25,000 in property damage per accident caused by you.

This basic coverage, also known as "30/60/25" coverage, pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident caused by you, up to the coverage limits. In some cases, you can (and in some cases should) carry more coverage to protect yourself in a serious car accident that results in significant car accident injuries and vehicle damage. Remember that you are personally liable once your policy limits are depleted, so higher insurance limits can help protect your assets in a serious accident. If a family member is driving your vehicle or if you permit someone else to use it, your liability coverage will kick in. It will almost certainly cover you if you have an accident in a rented car.

Proof Of Car Insurance

In addition to purchasing adequate auto insurance in Texas – at the very least, 30/60/25 – you must also show proof of insurance if the police request it. Police officers who stop you for a traffic violation will request proof of insurance and your license and registration. You'll also need to show proof of insurance if you're in an accident, register your vehicle, obtain a Texas driver's license, or renew your registration or your license. As part of your annual vehicle inspection, you must show proof of insurance. You should keep your insurance card, or proof of insurance in your vehicle in case of a law enforcement officer requests it during a traffic stop. Failure to carry insurance or provide proof of insurance when requested can result in fines and other penalties, particularly if involved in an accident. When you purchase car insurance, your insurance company will send you identification cards. You should immediately place these in your glove compartment and keep them there so you can access them in the event of an accident or if a police officer requests to see them.