Understanding Texas car insurance requirements is key for getting the best Texas car insurance coverage. From large cities to small towns from farms to oil refineries, Texas offers its residents many different environments to live in and thrive in. A big part of life in Texas involves driving. Whether driving for work, for your personal needs, to school, or for your own business Texas car insurance requirements must be met. Meeting the requirements set forth by Texas law will ensure that you have the coverage you need.
Texas Car Insurance Requirements for All Drivers
Texas follows a tort system which means that the person at fault in an accident is responsible, either personally or through their insurance, for the damages. Anyone holding a Texas driver’s license must carry Bodily Injury Liability $25,000 per person or $50,000 per accident. Property Damage in the amount of $25,000 is also required. Driving without these minimum amounts will result in fines, possible jail time, and lose of license.
You may wonder why these two types of coverage are required. Since Texas follows a tort system, if you do not have the minimum coverage, you can be sued by the other driver. Bodily Injury Liability covers death or bodily injury that you cause to another person. Part of having this coverage also protects you if you are sued by the other party involved in the accident.
Bodily Injury Liability can cover law suits for loss of income, medical bills, or pain and suffering. It will only cover up to the minimum amounts of $25,000 per person and $50,000 per accident. This will allow you to not lose your personal money or assets because of a law suit unless the settlement is for more than the coverage amount. Bodily Injury does not cover damage to you or another person on your policy.
Something to keep in mind is that the minimum required amounts may not be enough to cover your financial responsibility if you are in an accident. This is especially true if there is serious injury or death. A general rule of thumb is to have coverage in an amount close to the worth of your personal assets. This way you are covered and your personal assets are protected.
Property Damage Liability covers you if another person’s property is damaged by your vehicle. This includes another car, a house, a fence, or other property that may be damages as a result of an accident. The legal ramifications are the same as discussed above. You want to make sure you have enough coverage should you caused damage to another person’s property.
More than Texas Car Insurance Requirements
Having the minimum coverage will protect you under Texas law, but it still might not be enough. For example, if your vehicle is financed or leased, you may be required to carry Comprehensive Coverage. This type of coverage covers your vehicle from most others situations other than collision. This includes damage from weather such as tornadoes, hurricanes, hail damage, and flood. It also covers damage from fire and if your vehicle is stolen.
This type of coverage has a deductible. Once you pay your deductible, the insurance company will cover the rest of the damages. When choosing you deductible you want to make sure that it is high enough to make your monthly payments affordable but not too high so that you cannot pay it when necessary. Deductibles are typically in $500 increments.
Before getting insurance, check with the finance company that you have your car loan with to see if they require comprehensive coverage. Most finance companies do. Another reason to have this coverage is if you have a newer vehicle or a specialty vehicle. These types of vehicles can be expensive to replace or fix, so having comprehensive will help you take care of these expenses.
Finding a Good Deal on Texas Auto Insurance Requirements
Finding a good deal on Texas car insurance starts with shopping around. Even if you have been with an insurance company for a long time, it is still a good idea to shop around at least one a year to make sure you are still getting your best deal. When shopping around remember that cheaper isn’t always better. You want to make sure you have adequate coverage as well as an affordable price.
One way to shop around is to compare prices in one place. You can use a comparison tool like ours at the top of the page to compare prices from different car insurance companies. Comparing prices and coverage will help you make a decision for your insurance coverage. Remember, you must meet the Texas car insurance requirements, but you also want to consider adding additional coverage.
Get started finding the best Texas car insurance today!