Texas Car Insurance (The Ultimate Guide)

The Lone Star State. Mouth-watering barbeque. Sizzling hot summer temperatures. A powerhouse of the energy sector. Warm and friendly people with that extra dose of sweet, Southern hospitality.

These might be a few of the things that come to mind when you think of Texas. The Lone Star State is a crossroads of history and culture, bordering four other U.S. states along with the Gulf of Mexico and Mexico to the south.

If you’re one of the over 28.3 million individuals currently residing in the Lone Star State, finding the right Texas car insurance to safeguard all the drivers in your family at the rates you need is one of the single most critical decisions you’ll ever make.

When you consider the fact that Texas ranks number 16 out of all 50 states for uninsured drivers, with approximately 14 percent of all drivers in the state getting behind the wheel without coverage, the urgency to secure the best policy for all the motorists in your family is heightened.

Whether you’ve lived in Texas all your life or are gearing up for a move to the Lone Star State, if you are overwhelmed by the plethora of Texas car insurance companies to pick from—you’re not alone. With so many providers and coverage options available, your mind is probably buzzing with questions.

Which providers offer the best rates? What coverages are required under current Texas state law? What carriers have the best consumer ratings or most complaints across the board?

We’re so glad you asked.

We know how busy life can get, and sometimes, finding the right Texas car insurance provider can end up on the bottom of your to-do list.

That’s why we put together the ultimate Texas car insurance guide to answer all your burning questions about auto coverage in the state, including everything from carrier rates to insurer ratings to the laws governing policies to vehicle licensing laws and more.

Stop stressing about auto coverage and start saving big by getting your quote for multiple Texas car insurance providers in one place with our handy online rate calculator. Just enter your zip code to access your FREE quote!

Are you ready to dive into the ultimate Texas car insurance guide?

We thought so. Let’s get started

Texas Car Insurance Coverage and Rates

https://www.youtube.com/watch?v=0CLcSEdhXZI&t=20s

Texas is a virtual powerhouse of industry and energy, with energy providers like Shell serving as some of the primary employers in the state’s economy.

When energy prices dip, so typically does the state economy. The Lone Star State is considered to have excellent job growth numbers when compared to the rest of the country. In fact, the state grew 345 residents each day in the eight-year period between 2005 and 2013.

The weather gets very balmy in Texas, with temperatures in the late summer frequently soaring to the upper 90s and beyond.

From the exquisite views at the San Antonio River Walk to the glorious topography of Big Bend National Park to the wondrous beauty of Padre Island National Seashore, The Lone Star State has no shortage of things to see, do, and enjoy.

If state income tax has you down, Texas could be the answer. The state charges zero state income tax and even sales tax is pretty moderate. However, Texas’s property tax rates are some of the highest in the entire U.S.

With that said, the housing market in Texas is pretty affordable with housing sales increasing by 5.2 percent in early 2019 along with reduced mortgage rates.

Austin is renowned for its incredible live music industry, but the state as a whole is a thriving example of the music scene. From country to blues to hip hop to bluegrass—Texas has it in spades.

Let’s take a look at some interesting facts about Texas’s car culture that every driver in the state ought to know about.

– Texas’s Car Culture

Texas’s car culture scene is characterized by a history of drivers who just love modifying their vehicles—including everything from installing longhorns on the grilles to the yearly Houston Art Car Parade, during which residents can display their unique takes on car modifications.

In Houston in particular, a popular modified car style is the slab.

A slab is a massive, candy-hued luxury car from the glory days of American vehicles in the 1970s and 1980s, with favored models being Cadillacs and Buicks.

Slabs are low-riding cars with 30-spoke wire rims known as swangas, enhanced stereophonic sound, and a fifth car wheel with another integrated swanga.

Modified cars aren’t the only hub of Texas’s car culture, however, as residents of the Lone Star State buy one out of every six pickup trucks sold country-wide. The popularity of the pickup truck is a distinct representation of the independence and freedom that Texans love.

– Texas Minimum Car Insurance Coverage Requirements

The video above explains the minimum liability coverages required under current Texas car insurance laws. Check out the table below for the basic policy limits you need to carry before you get behind the wheel in the Lone Star State.

Let’s take a closer look at each of the coverages listed above in further detail:

• $30,000 bodily injury liability coverage per person: To cover the costs of injuries incurred per person due to an accident you are responsible for.
• $60,000 bodily injury liability coverage per accident: To cover the total costs of injuries incurred by two or more individuals due to an accident you are responsible for.
• $25,000 minimum property damage coverage per accident: To cover the costs of property damage sustained by other drivers in an accident you are responsible for.

The minimum liability coverages noted above serve to pay the costs of car damage, medical bills, and other expenses incurred by motorists, passengers, and/or pedestrians in the course of an accident you cause.

It is important to note, that these coverages are the absolute minimum required under Texas car insurance laws, but it is advisable and often recommended to carry policy amounts above these figures.

Why?

Well, let us suppose you that you cause an accident that results in serious, significant injuries and property damage to the other party or parties involved.

Once your policy limits are maxed out, you could be held personally liable for any remaining damages that are as of yet unpaid. Taking out coverages above the minimum amounts is worth serious consideration in order to protect your assets in the case of a serious collision.

Your liability coverage also applies if a member of your family is driving your car or if you have given another individual your permission to operate it.

These coverage amounts do not apply to any injuries or property damage you sustain due to an accident. This is where optional policy coverages like Medical Payments (MedPay) or Personal Injury Protection (PIP) come into play.

Texas adheres to the fault system regarding assessing liability for an auto collision. Essentially, whoever is responsible for the accident will pay for any damages incurred by another party or parties. In reality, the at-fault party’s Texas car insurance carrier will pay for these damages up to and until the insured’s policy limits are exhausted.

Following an auto accident, an injured individual may opt to file a claim with his or her Texas auto insurance carrier and/or file a claim with the at-fault party’s insurance.

An injured party may also file a personal injury claim against the at-fault driver to secure compensation for things like medical expenses, property damage costs, pain and suffering, and other related damages.

– Forms of Financial Responsibility in Texas

According to the Texas Transportation Code 601.072, motorists must carry the minimum liability coverages specified above of 30/60/25.

Under a different section of the same code known as the state’s financial responsibility law, Texas Transportation Code Section 601.053, acceptable forms of financial responsibility (proof of insurance) include:

• Your car insurance policy that meets the state’s minimum coverage requirements
• Your insurer-issued proof of insurance form
• Electronic proof of insurance
• An insurance binder that shows you are in compliance with the state’s minimum coverage requirements

In lieu of proof of insurance, other acceptable forms of financial responsibility include:

• A surety bond certificate in compliance with Texas Transportation Code Section 601.121
• A certificate of deposit with the comptroller covering your car in accordance with Texas Transportation Code 601.122 
• A copy of a certificate of deposit with the county judge covering your car in accordance with Texas Transportation Code Section 601.123
• A certificate of self-insurance or photocopy of same covering your car in accordance with Texas Transportation Code Section 601.124

You must carry one of the aforementioned forms of financial responsibility in your vehicle with you at all times. If you get into an accident or are pulled over and asked to supply proof of insurance, failure to do so can lead to fines, as well as more severe penalties.

More on that further down.

For now, let’s take a look at how much residents of The Lone Star State are paying out of their income to cover the costs of Texas car insurance premiums.

– Premiums as a Percentage of Income in Texas

The table above reveals the average personal incomes of Texas residents in the period between 2012 and 2014 as compared to the percentage of those earnings they spent to cover the costs of auto insurance premiums.

An individual’s average personal income is the money left to save or spend after taxes are taken out.

If you note the data our researchers gathered in this table, you’ll see that the cost of coverage rose by approximately $90 annually between 2012 and 2014.

The average Texan’s disposal income dipped slightly in 2013 (when the premiums as a percentage of income were the highest) but went back up again in 2014 which helped to narrow the gap.

Premiums as a percentage of income were at their lowest in 2012, rose by 0.13 percent in 2013, and only went down by 0.02 percent in 2014.

However, when you compare the figures for premiums as a percentage of income in 2014 in nearby states like New Mexico, premiums comprised 2.76 percent of the average New Mexico resident’s income that year.

In addition, residents of New Mexico brought home nearly $8,000 less than Texans did in 2014, earning around just $33,000 in disposable income.

In short, premiums as a percentage of income in Texas are in a healthy range but bear close watching in the years ahead to see whether they hit another spike again.

Use the calculator below to find how much your Texas car insurance premiums are subtracting from your personal income.

CalculatorPro

– Core Car Insurance Coverage in Texas

The table here reveals the latest data our researchers gleaned from a study conducted by the National Association of Insurance Commissioners (NAIC). Be prepared for Texas car insurance rates to rise significantly in 2019 and moving forward.

– Additional Liability Coverage in Texas

The table above reveals the most recent data collected from the NAIC regarding the average loss ratio for Texas car insurance companies in the years between 2013 and 2015. An insurance company’s loss ratio is the percentage of losses they sustain against what they are earning back in the premiums they write.

If a Texas car insurance company consistently experiences losses over 100 percent, this means that they are actually paying out more in claims to insureds than they are earning back in policy premiums. If such a pattern goes on, this could spell real trouble for the insurer.

The good news is, the data here shows that Texas car insurance companies are seeing healthy gains to losses for PIP, MedPay, and uninsured/underinsured motorist coverage.

While policy coverages like PIP, MedPay, and uninsured/underinsured motorist coverage are optional under Texas car insurance laws, it is wise to consider adding these on to your policy in the event you get into a collision.

MedPay helps to cover the costs of medical bills should you get into an accident, regardless of who is at fault. PIP is very similar, with the primary difference being that this type of coverage also provides for lost wages in the event of a collision.

If you get into an accident for which you are not responsible, and the other driver is either uninsured or does not have sufficient coverages to pay for the full extent of your damages, uninsured/underinsured motorist coverage could save the day.

Remember, Texas ranks 16th in the nation for uninsured drivers, with approximately 14.10 percent of all motorists hitting the road without coverage.

In the event that you are one of the unlucky motorists to run into one of these uninsured drivers, it’s essential to ensure any personal injuries you might sustain will be covered.

– Add-ons, Endorsements, and Riders

Here are the top Texas car insurance add-ons you’ll want to consider for your policy:

• Rental Reimbursement
• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Mechanical Breakdown Insurance
• Emergency Roadside Assistance
• Modified Car Insurance Coverage
• Non-Owner Car Insurance
• Pay-As-You-Drive or Usage-Based Insurance
• Classic Car Insurance

– Male vs Female Annual Car Insurance Rates in Texas

Have you ever wondered whether it’s really true that male drivers pay higher car insurance rates than female drivers? We did the research and broke down the data to determine whether this was fact or fiction.

Here’s what you need to know—

– Demographic and Insurance Carrier

If you examine the table above, you’ll note that Texas car insurance carriers charge the highest annual rates to teen drivers. Furthermore, teen male drivers are typically charged significantly higher rates than teen female drivers.

Take Allstate, for instance. They charge single, teen male drivers approximately $2,000 more in annual rates than they do single, teen female drivers.

The gap isn’t always this wide though. If you look at the middle of the table at GEICO’s teen driver rates, there’s only about a $200 rate difference between 17-year-old male vs. 17-year-old female drivers.

So, if you already have or are about to have teen drivers in your household, you don’t necessarily need to despair over Texas car insurance rates. It is absolutely possible to cover teen drivers without breaking the bank, depending on the insurer you go with.

Another item that is interesting to note is the fact that the disparity between the rates charged to male vs. female drivers lessens considerably as the motorist ages.

For example, Allstate charges 60-year-old male and female drivers the exact same rates, and only charges married 35-year-old male drivers approximately $35 more per year than married 35-year-old female drivers.

Your marital status is another component that can affect your car insurance rates, besides these obvious factors like age and gender.

The train of thought car insurance companies often adhere to is that married individuals are more responsible and stable, which translates to enhanced safety behind the wheel, making them a lower risk to insure.

– Rank by Demographic and Insurance Carrier

Take a close look at the table above and use the search bar to find your current insurer and see where they rank for premiums charged based on the age and gender of the driver.

You’ll notice that Progressive ranks number one for charging the highest annual policy premiums to 17-year-old male drivers and USAA the lowest at number 12.

That’s an almost $7,000 premium gap!

In the lowest ranking spot at number 56, USAA comes in again with the most affordable rates of all, which are charged to married 60-year-old male drivers.

– Highest and Lowest Rates in Texas by Zip Code

Use the search bar for the table above to see how Texas car insurance companies adjust their annual rates based on your zip code.

– Most Expensive/Least Expensive Carrier Rates by City

Use the search bar to navigate the table above and see how Texas car insurance companies assess consumer rates according to the city you live in. The size of a city or town may affect the rates insureds are charged.

Not surprisingly, insureds in Houston are charged approximately $1,600 more in annual rates than individuals residing in tiny, unincorporated towns like Knickerbocker.

Best Texas Car Insurance Companies

In addition to Texas car insurance requirements and rate variances based on factors like age and gender, another factor that you can (and should) use to determine which carrier is right for you is to review consumer ratings.

Keep reading for the financial ratings of the 10 largest Texas car insurance companies, the top carriers with the best consumer ratings, insurers with the most complaints in the state—and so much more.

Let’s delve right in.

– The 10 Largest Texas Car Insurance Companies’ Financial Ratings

The table above reveals the AM Best financial ratings for the 10 largest Texas car insurance carriers statewide. AM Best is a global rating agency that awards insurers ratings based on their creditworthiness and assessed financial strength.

The absolute highest rating AM Best awards is an A++, while any other A ratings reveal that the carrier has excellent financial strength and ability to meet their obligations to consumers.

The key component to bear in mind when reviewing a Texas car insurance company’s financial ratings is that the AM Best system is voluntary. As such, many, but not all insurers will be listed in their database.

This is why insurers like Consumers County Mutual Insurance don’t currently have a rating on file with AM Best. As always, financial ratings are one of a plethora of tools at your disposal to assess an insurer and should not be the only measuring stick for your final decision.

– Texas Car Insurance Companies with the BEST Customer Ratings

– Texas Car Insurance Companies with the MOST Customer Complaints

The table above reveals the most recent 2019 complaint data regarding Texas car insurance providers across the state as provided by the Texas Department of Insurance.

Just be aware that customer complaints typically measure overall consumer satisfaction and should be one of many components you consider before landing on the right Texas car insurance provider.

– Texas Car Insurance Rates by Provider

Here we have the cheapest Texas car insurance companies in the state, with their rates juxtaposed against the state average. Allstate charges the highest rates of the group and USAA the lowest, with an approximate $1,000 annual premium difference between the two.

– Commute Rates

The table we have here reveals the average annual rates Texas car insurance companies charge consumers based on their commute and annual mileage. Some insurers show a rate difference based on the commute, while others charge the exact same rates regardless of commute time.

Case in point, Allstate charges insureds with a 25-mile commute approximately $260 more in annual rates than individuals with just a 10-mile commute. On the other hand, companies like Nationwide and Progressive assess the same rates either way.

The moral of the story here is that there is no set approach insurers stick to across the board regarding commute rates, so it’s best to shop around before making your final choice to ensure you secure the rates you’re looking for.

– Coverage Level Rates

Depending on the Texas car insurance carrier in question, the coverage levels you pick can be another major factor in the annual premiums you will be expected to pay.

While companies like Allstate only charge insureds with higher coverage levels about $300 more annually than consumers with low coverage levels, companies like American Family show over an $800 rate difference between these two coverage levels.

As you might have noticed, USAA charges the cheapest rates across the board for high, medium, and low coverage levels, with a mere approximate $180 rate difference between high vs. low coverages.

– Credit History Rates

Other than in a few states where the practice is illegal, most car insurance companies use your credit score as another piece of the puzzle when determining your rates.

Texas car insurance companies are no different. The video above offers a brief overview of how your credit affects the cost of your car insurance.

Check out the table below to discover how your rates could change based on your credit history.

As the table above reveals, some, but not all Texas car insurance companies show drastic rate changes based on your credit history. Companies like American Family charge insureds with poor credit almost $3,000 more in annual rates than they do drivers with good credit.

On the other hand, a carrier such as Progressive charges consumers with poor credit about $1,000 more per year than individuals with good credit.

The premium gap for good vs. bad credit really comes down to the insurer you pick. Of the top Texas car insurance companies noted above, you’ll see that USAA charges the cheapest rates for drivers with bad credit and Allstate the highest.

A study conducted by Experian found that the average Texas resident has a VantageScore of 656 with a total of 3.06 credit cards to their name and a balance of $6,902. This credit score is 19 points below the national average of 675.

Just because you have poor credit doesn’t mean you can’t secure the Texas car insurance company and coverages you want without breaking the bank. As you’ve seen here, some carriers will charge you much higher rates for poor credit, while others are more forgiving.

Start fostering healthy credit habits now, by not spending more than you can pay off in any given month and paying your bill in a timely fashion. Also, remember that your credit history is simply one of many factors a Texas car insurance company can use to assess your rates.

– Driving Record Rates

It shouldn’t come as a shock that Texas car insurance companies can and do look at your driving record when assessing your annual premiums. Depending on the carrier you end up with, the disparity in rates charged to drivers with a clean record vs. one DUI or accident can be significant.

For example, Allstate charges insureds with one DUI almost $2,600 more in annual premiums than they do drivers with a clean record. Once more, USAA shows up with the cheapest driving record rates across the board.

USAA charges insureds with one DUI just about $1,400 more in annual premiums than individuals with a clean record, which is still noteworthy but definitely not as high as companies like Allstate.

– The 10 Largest Car Insurance Companies in Texas

– Number of Car Insurance Providers in Texas

Driving Laws in Texas

You’ve come such a long way—let’s keep going. Now that you have a better understanding of the primary components Texas car insurance companies use to assess consumers rates, it’s time to delve into the state driving laws every motorist needs to know.

Trust us, you won’t want to miss these.

– Texas’s Car Insurance Laws

In The Lone Star State, drivers can obtain their learner’s license as young as 15 years old. While some states permit you to turn left on a red light, you could easily get a ticket or even lose your license if you try this in Texas.

As of 2017, the Texas Legislature passed a ban on messaging with mobile devices while behind the wheel.

The prohibition includes writing or reading an email while driving. Depending on the area you live in, your local government might impose even more stringent ordinances, such as forbidding you from any use of your mobile device while driving.

Laws are frequently changing, so it’s paramount to stay up to date to ensure you stay safe when you hit the road next.

Let’s dive right into Texas’s car insurance laws.

– High-Risk Insurance

If your driving history is less than stellar, with multiple accidents, tickets and/or traffic offenses, you might find it difficult or nearly impossible to obtain Texas car insurance the standard way.

If you have been unable to secure coverage through the voluntary insurance market, high-risk insurance could be a viable option for you.

Texas’s high-risk plan for drivers is known as the Texas Automobile Insurance Plan Association, or TAIPA for short. The plan was created in 1952 in order to offer high-risk drivers an opportunity to secure coverage while fulfilling the state minimum Texas car insurance requirements.

Provided your application is accepted by the program, you will be added to the high-risk pool of insureds covered by member insurance companies licensed to write premiums in the state.

Each insurance company that is part of the high-risk TAIPA pool must take on a certain number of high-risk drivers annually to meet their yearly quota.

For example, a company that is responsible for 11 percent of the auto insurance market in The Lone Star State will also be assigned 11 percent of high-risk drivers from the TAIPA pool.

If Progressive comprised 20 percent of the insurance market in Texas, they would be required to take on 20 percent of high-risk drivers in the state, and so forth.

It is important to understand that you will not be able to choose your insurer directly when going through TAIPA. Rather, one will be assigned to you.

The good news is, you have a very strong chance of being assigned to a larger insurer. Also, if a company that is part of the TAIPA pool does not report to the program as required, they will have an even larger quantity of high-risk drivers assigned to them.

No matter what insurance company TAIPA assigns to you, your coverage will be pretty much the same for all practical purposes.

TAIPA’s coverage options are very basic, but the price of high-risk coverage is typically more than the regular policy you would be able to secure through the voluntary insurance market.

As such, the number of high-risk drivers in the TAIPA pool has gone down over the years as motorists have found it easier to secure insurance through carriers that specialize in covering high-risk individuals.

In order to apply to the TAIPA program, you must certify that you have tried to secure coverage in the prior 60 days and were rejected by two Texas car insurance companies.

Individuals serving in the military are considered eligible for coverage if they are stationed in the state or are a resident of Texas stationed elsewhere in the country.

If you are accepted into TAIPA and assigned to a carrier, your high-risk coverage will last for a period of three years. You can expect the same carrier rates during those three years.

Once the three-year period is up, if you are still unable to secure coverage through the voluntary market, you can opt to re-apply to the TAIPA program to be assigned to a different insurer.

It is key to note, that with TAIPA, you will only be able to take out the minimum Texas car insurance limits required under state law. Options like purchasing limits above the state minimums or adding comprehensive or collision coverage to your policy are not a possibility.

You may opt to purchase PIP and uninsured/underinsured motorist coverage for your policy if you so desire, but again, at the minimum liability limits.

You have three different options to pick from for paying your premiums through TAIPA. You can:

• Pay your annual premium in full when assigned to a high-risk insurer
• Pay a 25 percent down payment up front, then pay the remainder within 30 days of the assigned insurer’s billing notice
• Pay a 20 percent down payment up front, then pay the remainder to the assigned insurer in eight installments

You may apply for high-risk coverage through TAIPA online, via mail, or hand delivery. For more information regarding the program and application process, visit the TAIPA website.

Insurance fraud occurs when an individual willfully and with full knowledge deceives, misleads, or defrauds an insurance company. Examples include:

• Submitting false or deceptive information to a carrier with regards to an application for an insurance policy or claim
• With full intent to defraud the carrier, pays, procures, offers, or receives a benefit associated with a payment claim

In short, any action taken to intentionally deceive a Texas car insurance company in order to receive an insurance benefit is considered insurance fraud and will be prosecuted accordingly.

The penalties for committing automobile insurance fraud in Texas vary based on the amount of money involved in the offense. Fraudulent acts involving less than $50 are considered Class C misdemeanors with a fine of $500.

The more money at stake in the fraudulent act, the greater the penalty will be. The gravest penalty for Texas car insurance fraud is when the claim involves an amount of $200,000 or above.

If you commit a fraudulent act involving $200,000 or more, the crime is held to be a first-degree felony with penalties ranging from 5-99 years imprisonment and/or up to $10,000 in fines.

If you falsify information on an insurance application, you would be charged with a state jail felony. A state jail felony incurs penalties ranging from 180 days to two years imprisonment and/or up to $10,000 in fines.

To sum it all up—don’t commit insurance fraud. Ever.

As a note, your statute of limitations is not to be confused with the amount of time you have to file a claim with your insurance company following an accident. Most companies require you to notify them of a collision within a certain period of time after the accident, typically days, or at the most a few weeks after it occurs.

– Texas’s Modified Comparative Fault Rule

Just because you were involved in an auto accident in Texas and sustained injuries does not necessarily automatically mean that you are entitled to compensation of damages.

Texas is one of a group of states that adhere to the modified comparative fault rule when assigning blame and the damages that can be awarded following a crash.

Under Texas’s modified comparative fault law,  courts can hold each party to an accident liable for the percentage of fault they contributed to the accident. Furthermore, the law requires that any compensation you are awarded be reduced by the percentage of fault assigned to you.

For example, if the court awards you $50,000 in damages for your case, but finds that you were 40 percent at fault for the accident, your compensation would be reduced by 40 percent. You would only receive $30,000 of what you were originally awarded.

In addition, the state’s modified comparative fault rule also means that if you are found to be more than 50 percent at fault for a collision, you will not be able to recover any damages whatsoever.

– Texas’s Vehicle Licensing Laws

The REAL ID Act was passed by Congress following the terrorist attacks on 9/11, mandating certain requirements for state-issued IDs and drivers licenses to be accepted for federal reasons, such as to board a domestic flight or go inside a federal building.

According to the Texas Department of Public Safety, their office has already submitted their plan to the Department of Homeland Security to ensure compliance with the REAL ID Act.

All Texas IDs and drivers licenses are in compliance with REAL ID laws and can be used for associated purposes like getting on board a domestic flight or entering a federal building.

It is anticipated that all drivers licenses and ID documentation previously issued will still be accepted until the deadline of October 1, 2020.

After that date has passed, any IDs or drivers licenses that are not in compliance with the REAL ID Act will not be accepted.

This will bar any individual holding these older forms of ID from entering a federal building or getting on board a domestic flight unless they have another form of identification compliant with the Department of Homeland Security’s regulations.

The video above offers a helpful explanation of where things stand with REAL ID in Texas.

Let’s dig deeper into the vehicle licensing laws that all drivers in The Lone Star State need to know about.

– Penalties for Driving Without Insurance

The penalties for driving without insurance in the state of Texas are steep and not to be taken lightly.

If you ever get into an auto accident in The Lone Star State or are pulled over for a traffic stop, you should be prepared to offer proof of insurance to the responding officer.

Besides proof of insurance, you will also need to provide your vehicle registration in Texas and your driver’s license.

Acceptable forms of proof of insurance include:

• Your car insurance policy that meets the state’s minimum coverage requirements
• Your insurer-issued proof of insurance form
• Electronic proof of insurance
• An insurance binder that shows you are in compliance with the state’s minimum coverage requirements

Alternative forms of financial responsibility that are also acceptable include:

• A surety bond certificate
• A certificate of deposit with the comptroller
• A copy of a certificate of deposit with the county judge
• A certificate of self-insurance or photocopy of same

In most cases, carrying Texas car insurance that meets at least the state minimums and keeping proof of insurance with you at all times is going to be the easiest, most cost-effective option.

If you get pulled over, a Texas law enforcement officer can compare your insurance policy against the TexasSure database, the state’s vehicle insurance verification system.

If you are unable to provide proof of financial responsibility, be prepared to face fines anywhere between $925 all the way up to $1,750.

For first-time offenders who fail to provide proof of insurance, fines range from $175 to $350. In addition to this amount, you will be required to fulfill a yearly surcharge of $250 for a period of three years. When combined with the initial fine, you could face a payout of $925 to $1,100, just for your first offense.

If the responding officer issues you a ticket for driving without auto insurance, you may face higher auto insurance premiums when you do try to secure coverage as carriers could consider you a high-risk driver.

You could also be required to file an SR-22 form with the Texas car insurance company you select to confirm that you carry coverage in the state minimums.

If you are found driving uninsured a second time or any other following times, the penalties can increase significantly.

Not only will you be required to pay fines ranging from $350 all the way up to $1,000, but you will have to fulfill a yearly surcharge of $250 for a three-year period once more. The grand total could be anywhere between $1,100 to $1,750. Besides these hefty fines, it is also at the court’s discretion to order your vehicle be impounded until you can offer acceptable proof of financial responsibility.

You will have to pay fees for impoundment of $15 per day. For example, if your car is impounded for 180 days, you face $2,700 in impoundment fees alone.

In the event that you are fined for driving without auto insurance and cannot full the mandatory yearly surcharges, you might be eligible for the state’s Indigency Program.

If your income is at or falls below 125 percent of the federal poverty level, your required surcharge could be cut down to 10 percent of the original charge, which means you’d only need to pay a yearly amount of $25.

All of this can be avoided if you carry at least the minimum Texas car insurance coverages required under state law and carry proof of insurance with you in your vehicle at all times.

Fines, suspension of your driving privileges, and vehicle impoundment are all penalties you could incur if you choose to drive uninsured.

Furthermore, if you cause a wreck that leads to the serious injury or death of another party, you will have to pay a $4,000 fine. Based on the severity of the injuries involved, you could also face up to one year’s imprisonment.

In this scenario, you will also have to file an SR-22 form with your new insurer for three years following the wreck, plus your license and vehicle registration will be suspended for as much as two years. This, of course, doesn’t include any damages you will be liable for should the injured party file suit.

What’s the point here? Don’t ever get behind the wheel without proof of insurance or another acceptable form of financial responsibility. If you maintain proof of insurance and keep it with you in your car at all times, you’ve got nothing to worry about.

– Teen Driver Laws

Check out the teen driver laws applicable to all young motorists in Texas.

To secure your learner’s license in the state of Texas, you must be at least 15 years of age. Before moving on to a license or restricted license, you are required to:

• Hold your learner’s license for a minimum of six months
• Complete at least 30 hours of supervised driving time, 10 of which must be at night
• Be at least 16 years of age

Restrictions imposed during the restricted license period include:

• Nighttime restrictions preventing teen drivers from operating a vehicle between midnight and 5 A.M.
• Passenger restrictions prevent teen drivers from transporting more than one passenger under the age of 21

Both these restrictions can be lifted once the teen driver turns 18. Individuals who are 15 years of age or older but still under the age of 18 must complete and pass an approved driver education class in order to be issued a permit. The minimum license age for drivers who have not gone through drivers education is 18.

– Older Driver and General Population License Renewal Procedures

Here are the license renewal procedures that all drivers need to know about.

For the older driving population, you must:

• Renew once every two years if you are aged 85 or older
• Provide proof of adequate vision if you are aged 79 or older
• Mail or online renewal is not permitted if you are aged 79 or older

For the general driving population, you must:

• Renew once every six years
• Provide proof of adequate vision when renewing in person
• Either mail or online renewal is permitted every other renewal

– New Residents

If you are gearing up for a move to The Lone Star State or recently relocated there, here’s what new residents need to know to secure their new driver’s license.

In Texas, drivers can legally operate a motor vehicle with a valid, current driver license from another state, U.S. territory, qualifying country, or Canadian province for a period of up to 90 days following their move. You must apply for your new Texas driver’s license before the 90 day period comes to an end and surrender your old one.

To apply for your new driver’s license, you will need to provide:

• Proof of identity (such as your valid out of state license)
• Proof of residency
• Proof of U.S. citizenship or lawful presence
• Proof of social security number
• Proof of vehicle registration in Texas (assuming you have a car titled to your name)

Adult drivers education programs, knowledge, and skill exams are all waived for new residents over the age of 18 applying for a new license with their valid out of state ID. Visit the Texas Department of Safety’s Moving to Texas webpage for additional information.

– Negligent Operator Treatment System

Negligent or reckless driving is a very serious offense in the state of Texas, occurring when a motorist willingly or wantonly commits a reckless driving offense, operating their vehicle with complete disregard for the safety or property of others.

Reckless driving falls under the Texas Transportation Code Annotated 5405.401 (2016), which states that a driver can be found guilty of reckless driving even if they are not operating a vehicle on a public road.

The law applies to motorists driving on qualifying private properties which have been opened to the general public, like a parking lot at a mall.

Examples of reckless driving include:

• Driving at a dangerous or excessively high speed
• Putting other motorists at risks by running red lights or stop signs
• Willfully failing to offer the right of way to pedestrians and other motorists
• Driving while intoxicated or under the influence
• Drag racing with over cars
• Intentionally avoiding law enforcement officials
• Going over the double yellow line when driving in a two-lane highway
• Talking on your mobile device while operating a motor vehicle
• Passing a school bus that has stopped
• Failing to give hand or electronic signals as needed
• Driving in a manner that you are unable to exert proper control of your car

Reckless driving is categorized as a hybrid crime in The Lone Star State, which means if you are charged with reckless driving you face a misdemeanor conviction carrying with it up to 30 days imprisonment and/or $200 in fines. The conviction will be a permanent mark on your driving record.

Additional penalties for reckless driving could include:

• Suspension of your driver’s license
• Revocation of your driver’s license (if you have other suspensions or violations on your record)
• Points on your driving record
• Community service
• Paying restitution to the victims
• Loss of your job (if you drive as part of your job)
• Denial of security clearance

– Texas’s Rules of the Road

Alright, now it’s time to take a closer look at the primary rules of the road governing all drivers in the state of Texas.

Ar you ready? Let’s get this show on the road—

Let’s take a closer look.