Texas law requires all drivers to have adequate car insurance. According to state law, Texas drivers need to have minimum insurance coverages of $30,000 per injured person, up to at least $60,000 per accident. Additionally, Texas drivers must have coverage for property damage of at least $25,000. Insurance and legal professionals refer to these coverage requirements in shorthand 30/60/25 coverage.
These requirements, however, are simply minimums, and there’s no guarantee that minimum coverage will address all the costs of recovery and repairs if you’re injured in an accident.
Although Texas doesn’t require drivers to have insurance against uninsured and underinsured drivers, it’s a good idea to consider including it in your policy. This type of insurance protects you if you’re injured in an accident caused by a driver who didn’t have insurance, or who didn’t have enough coverage to take care of the damages.
Proof of Insurance
In addition to purchasing appropriate auto insurance in Texas – again, 30/60/25 at the very least – you also need to show proof of insurance if police request it. Police officers who pull you over for a traffic violation will ask to see proof of insurance along with your license and registration. Additionally, you’ll need to produce proof of insurance if you’re involved in an accident, as well as to register your car and get a Texas driver’s license or renew either your registration or your license. The law requires you to show proof of insurance as part of your annual vehicle inspection.
When you purchase your car insurance policy, your insurance company will send you ID cards. You should immediately put these in your glove compartment and keep them there, so that you can access them immediately after an accident or if a police officer asks to see them.
Types of Insurance Coverage in Texas
While the state minimums are fairly straightforward, more insurance means more protection in case of an accident, so it can be helpful to understand your coverage options beyond the state minimum requirements. Depending on the type and amount of insurance you have, your insurance company – or the insurance company of the at-fault driver in 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 different types of coverage can help you decide what insurance to buy as well as help you navigate the insurance system in the event of an accident.
- Liability coverage – which is all that’s legally required in Texas – pays costs such as medical bills and funeral expenses, as well as lost wages in case of a serious injury and pain and suffering compensation. It also covers property damage such as repairing or replacing a damaged vehicle or paying for a rental car while repairs take place.
- Collision coverage – something a lender will require when you finance the purchase of a new car. It covers damage to your car while you still owe money on it. This type of insurance will pay out either your car’s actual value, the amount necessary to repair or replace itor the amount on the insurance declaration page – whichever is the least amount.
- Comprehensive coverage – similar to collision coverage but covers the cost of repairing or replacing your car in incidents other than a collision – like if someone stole it or it was damaged by vandalism, hail, or other non-collision events.
- Uninsured/Underinsured Motorist coverage – will pay out damages for bodily injury and property damage if you’re in an accident caused by a driver who doesn’t have insurance. Although Texas law requires insurance, many drivers ignore the law, so this can be a good added protection.
There are other types of insurance available as well, so it’s important to do plenty of research before you buy and understand your options. If you were involved in a vehicle collision and need experienced legal advice, consider speaking with an Austin car accident lawyerwho can help you understand how insurance affects your legal options.
FAQs
Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage. Think about buying more liability coverage.
What documents do I need for car insurance in Texas? ›
What documents do I need to get car insurance?
- Full name.
- Date of birth.
- Address.
- Social Security Number.
- Driver's license number.
- Driving history (including any recent accidents)
- Claims history.
You aren't legally required to have insurance for a teen with a learner's permit, but you should always let your insurance company know if a teen is learning to drive in your vehicle.
How long do you have to insure a car in Texas? ›
In the event that you purchase a new car, “your current insurance will automatically cover it for about 20 days.”[4] After that, it is your responsibility to inform your insurance of your new car to maintain coverage on that vehicle.
Who has the cheapest car insurance in Texas? ›
Is Texas a fault or no fault state? ›
Texas is not a no-fault state.
Texas is one of 38 at-fault states, meaning that the party that is found to be at fault for the accident will be responsible for compensating the injured party for the amount he or she is responsible for.
Do you need insurance to drive someone else's car Texas? ›
Borrowing a Friend or Family Member's Car
If you borrow a car from a friend, family member, or other acquaintance for a short time period, your policy will extend liability and other coverage to you while driving that vehicle. This assumes you have permission to use the car.
What is the average cost of auto insurance in Texas? ›
The average cost of liability-only insurance in Texas is $683 per year, and the average cost of full-coverage insurance is $2,205 a year. Insurance rates in Texas are slightly higher than the national average.
Do you need Texas insurance to register a car? ›
Texas provides Texas Sure, a program that requires vehicle owners to carry minimum insurance amounts to protect themselves and their fellow Texans. You cannot register or renew your vehicle registration without meeting the state insurance requirements.
How long can I stay on my parents car insurance in Texas? ›
And unlike health insurance, there is no age limit that would prevent you from staying on your parents' car insurance.
A: Texas is a “permissive driver” state. This means that, if someone else who is not you is driving your car and gets into an accident, they are covered by your insurance policy. This is true for any individual, regardless of whether they are listed on your policy, so long as they have permission to drive your vehicle.
Do my parents have to add me to their car insurance? ›
Generally speaking, insurers will ask you to list all household members when applying for a car insurance policy. Young children (typically under the age of 14) should be exempt, but the other individuals in your household should be disclosed, including: Spouse. Significant other.
What are Texas minimum car insurance requirements? ›
In Texas, you must have at least $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25.
Can I drive a car without insurance if I just bought it in Texas? ›
You're required to carry car insurance while driving in Texas. If you don't have auto insurance, you could get a fine of up to $1,000, your vehicle impounded for up to 180 days and your driving privileges suspended for up to two years.
Do I need full coverage on my car in Texas? ›
Texas does not require drivers to purchase full insurance coverage. State law only requires drivers to purchase the minimum policy limits of liability coverage. However, insurance companies must offer personal injury protection (PIP), uninsured, and underinsured coverage, which policyholders can decline in writing.
Do you need a Texas driver's license to get car insurance in Texas? ›
Don't be discouraged! As you shop around, you will be able to find a company that offers auto insurance for unlicensed drivers. Contact Pronto Insurance for an insurance quote. We'll find the perfect policy for you, meaning a deductible you can afford and the coverage you need.
What are the requirements to get insurance license in Texas? ›
How to Get Your Texas Insurance License
- Complete an Insurance Prelicensing Course. Prelicensing Education Hour Requirements. ...
- Pass Your Texas Licensing Exam. ...
- Get Fingerprinted. ...
- Apply for a Texas Insurance License. ...
- Plan to Complete Required Insurance Continuing Education (CE) Credits.
You must provide proof of liability insurance when you title and register your vehicle. If you do not provide proof of insurance, you may apply for 'title only'. The Vehicle Inspection Report (VIR), which is proof of inspection, must be provided if a record of current inspection is not in the state database.
What is 30 60 insurance in Texas? ›
Texas minimum liability insurance is called “30/60/25 coverage.” For each accident, there is $30,000 for each injured person, up to $60,000 per accident, and up to $25,000 for property damage per accident.
