Every vehicle on a Texas roadway should be legally insured. However, many individuals are not quite sure exactly what type of insurance they need to have on their vehicle. Here, we want to discuss the Texas car insurance requirements, specifically the minimum mandatory requirements set forth under state law. Additionally, we will discuss other types of insurance that you should consider purchasing if you regularly drive in Texas.
What Does Texas Law Require?
Every state in this country sets minimum requirements when it comes to the types of insurance that vehicle owners must purchase and maintain at all times. Currently, Texas law requires that drivers purchase and maintain the following:
Bodily injury liability of $30,000 per person and $60,000 per accident
Property damage liability of $25,000 per accident
There are a multitude of insurance companies in Texas that individuals can choose from when it comes to obtaining car insurance. We strongly encourage that every driver shop around for the best rates when it comes to how much insurance they wish to purchase.
Why You Need to Consider Additional Insurance
When we examine the minimum insurance requirements in Texas, the reality is that the minimums are not very high. This can be a problem if you end up being at fault for an accident. Suppose, for a moment, that you slam into another vehicle and the other driver sustains $35,000 worth of medical bills. If you only have the minimum $25,000 of bodily injury coverage per person, this means that you will personally be on the line for the additional $10,000 if the other driver files a personal injury lawsuit against you.
How can you get around being held personally responsible?
The answer is that you should consider purchasing higher minimum amounts of bodily injury and property damage liability coverage. Even doubling your liability coverage amounts will not increase your premiums by too much, but it will significantly increase your protection if you cause an accident.
Additionally, the state of Texas does not require individuals to carry uninsured or underinsured motorist coverage. However, we strongly encourage every driver to consider purchasing this additional type of coverage to protect themselves.
What if You’re in an Accident With an Uninsured Driver?
The Insurance information institute (III) says that around 8.3% of all motorists in Texas operate their vehicles without insurance, which could put you in a tricky position if you are struck by an uninsured driver. If you carry uninsured motorist coverage, you will have bodily injury and property damage liability coverage up to the limits of your policy.
If you end up being struck by a driver who does not have enough insurance to cover your injury or property damage expenses, your underinsured motorist coverage could help make up the difference.
Are There Additional Requirements for a Leased Vehicle?
Finally, if you lease your vehicle, you are required to carry collision and comprehensive coverage. However, even if you do not currently lease your vehicle, we strongly encourage that you carry these two types of insurance coverages. Collision coverage helps pay for damage to your vehicle caused by another vehicle or another object. Comprehensive coverage helps pay for damage to your vehicle caused by non-collision incidents, such as theft, fire, natural disasters, animal damage, following objects, and more.