Texas Car Insurance


The good news? Just about every major insurance carrier in the country is licensed to do business in the state of Texas. The bad news? At any given time you can pretty much guarantee that about 20% of the people operating motor vehicles in Texas are uninsured. We at CarInsuranceReviews.com want to make sure you are not one of those people.

Establishing Financial Responsibility in Texas

While purchasing a car insurance policy is certainly the easiest option, the state of Texas does allow drivers other methods for proving financial responsibility. Your other options include obtaining a surety bond to file with the county clerk, making a deposit to the county comptroller in the amount of at least $55,000 cash, or making a deposit to the county judge in the amount of $55,000 cash. Drivers who own more than 25 cars can self-insure, but this option usually only applies to transportation companies and car dealerships.

Current Minimum Insurance Requirements in Texas

Texas law currently states that all drivers must carry bodily injury liability coverage in the amount of $25,000 per person and $50,000 per accident in order to pay for medical bills or death expenses. Drivers must also have at least $25,000 in property damage liability coverage to pay for damage to another person’s vehicle or real property, such as a telephone pole or house.

These are the minimum coverage limits allowable by law but Texas law does not place a limit on the maximum amount of coverage you can buy. Purchase the highest limit you can afford to ensure you have enough coverage to protect your assets if you are ever involved in a serious accident.

Changes to the Minimum Limits in Texas

The above limits are the current minimum limits, but the state of Texas will be increasing the minimum limits of liability coverage drivers must obtain effective January 1, 2011. When the new changes to into effect, drivers will be required to have $30,000 per person and $60,000 per accident in bodily injury liability coverage. The property damage liability limit will remain the same. Ask your insurance company how these changes will affect your current policy or any policy you purchase before January 1st, 2011.

Proving You Have Texas Insurance Coverage

Texas insurance carriers are required to submit electronic proof that you have purchased car insurance. As long as you maintain coverage, you’ll probably never hear from the DMV.

Failure to maintain coverage is another story. If you don’t respond to a notice asking to verify insurance, or if you are caught without it, the DMV will suspend your driver’s license and registration. Subsequent offenses can result in your car being impounded for up to 180 days, during which time you will be charged a fee for each day your car is locked away. To reinstate your privileges you’ll have to purchase insurance and pay fees up to $350 to reinstate all of your licenses.

Let CarInsuranceReviews.com Help You

Don’t get caught without insurance in Texas. Simply put your zip code into the form below and we’ll put you in touch with some of the most reputable car insurance companies in the state. You’ll be on the road before you know it.

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