Texas has a wider variety of natural catastrophe hazards than most states, which can make driving on its highways more dangerous. This includes hurricanes, tornadoes, hailstorms, ice storms, floods, and wildfires, said Mark Friedlander, senior director of media relations for the Insurance Information Institute (Triple-I).
“The Triple-I recommends all Texas drivers carry optional comprehensive coverage to protect themselves from the impacts of these severe weather and climate events,” Friedlander said.
Read on to learn the minimum requirements for car insurance in the Lone Star State, the types of optional coverage available, how to get the cheapest car insurance in Texas while still meeting your coverage needs, and more.
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Texas follows an at-fault auto insurance system, which means the driver responsible for an accident is liable for damages, and their insurance covers the other party’s costs. The state of Texas requires all drivers to purchase the following minimum amounts of car insurance coverage:
If someone is injured or dies in a car accident you cause, and you’re sued by the person or their family and found guilty, bodily injury liability coverage pays for the costs of the damages awarded for pain, suffering, and economic damages, such as lost wages. The minimum coverage amount is $30,000 per person, up to a total of $60,000 per accident.
Property damage liability coverage pays for the cost of repairing or replacing property that you damaged in a car accident. The minimum coverage amount for a basic policy is $25,000 per accident.
Insurance companies sometimes refer to these minimum liability limits as “$30,000/$60,000/$25,000” or “30/60/25.” Most policies also pay your attorneys’ fees if you’re sued because of an accident.
You can opt for additional car insurance coverage above the state’s minimum requirements. While your insurance premium will rise with the more coverage options you add on, you’ll generally be better protected and more financially insulated from all costs associated with accidents.
Learn more: The most common types of car insurance explained
You should consider buying additional liability coverage over the minimum liability limits in case you total another person’s car, cause severe injuries or death, or cause an accident involving multiple vehicles and those parties sue you.
Personal injury protection (PIP) covers the medical costs of treating injuries you and/or others on your policy have sustained in an accident as well as funeral expenses, lost wages, and other nonmedical expenses. In Texas, insurance companies are required to offer PIP, but drivers can decline that coverage by signing a waiver.
Medical payments coverage, or MedPay, covers medical costs and funeral expenses but not lost wages and other nonmedical expenses. Insurers are not required to offer this coverage, and it’s optional for drivers.
If you’re in an accident caused by another driver who is uninsured, underinsured, or a hit-and-run motorist, uninsured motorist coverage will pay the medical costs if you’re injured, but not the repair or replacement costs if your car is damaged. Insurers are not required to offer this coverage, and it’s optional for drivers.
Learn more: Here’s what to do if you’re involved in a hit-and-run crash
If you damage your own car, collision car insurance coverage will pay the repair or replacement costs.
Comprehensive car insurance covers any damage to your car that is not covered by collision, including costs to repair a broken window, damage from flooding, fire, vandalism, falling or flying objects, and if you collide with an animal. It also covers the cost to replace your car if it’s stolen.
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Accident while driving for Uber, Lyft (or another ridesharing service), or delivering items for Uber Eats, DoorDash, Instacart, or Grubhub
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Accidents while driving a company-owned car or any other vehicle that you don’t own
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Damaged equipment that wasn’t permanently installed in your vehicle
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Accidents while racing
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Accidents while driving in Mexico (though most policies in Texas cover accidents in Canada)
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If you intentionally cause damage
In Texas, parents can purchase a separate policy for their teenagers who’ve started driving, or parents can add them to their own policy, whichever is the cheaper option.
Some insurance companies will mandate that policyholders put the names of everyone living in their home who is 16 or older, the legal driving age in Texas. If they don’t, insurers can retroactively charge the additional premium for each individual and may not pay any claims or renew their policy.
Parents must keep teenagers over 16 on their policy even if they’re away at college. Although if they don’t have a car, parents might be able to receive a discount on their premium.
Drivers who tried and were unable to obtain a car insurance policy from at least two commercial insurance companies can buy a policy with the Texas Automobile Insurance Plan Association (TAIPA). Coverages include minimal limits on bodily injury liability and property damage liability, personal injury protection, and uninsured/underinsured motorist coverages — but not collision, comprehensive, or higher liability limits.
TAIPA coverage costs more than traditional policies, and even more if you’ve had an accident or have been cited for moving violations. However, your premiums might be reduced after a year if you don’t get into an accident or get any traffic tickets. After three years, the designated insurer is required to sell you a conventional non-TAIPA policy that’s cheaper.
In Texas, when you buy your car insurance policy, insurance companies are required to give you a copy of the Texas Consumer Bill of Rights for auto insurance. Contents include what types of coverage insurance companies must offer and what you need to do if you decline, the kinds of rights you have when filing a claim, and your rights surrounding renewals and cancellations.
Here’s some advice on how to get the cheapest car insurance in Texas.
Texas has a very competitive auto insurance market with more than 100 national and regional auto insurers offering coverage, Friedlander said.
When shopping for coverage, Triple-I recommends obtaining at least three quotes with comparable coverage, as prices can vary significantly among carriers.
Drivers can work with an independent insurance agent who has contracted with several different insurance companies, said Carie Ann Roach, director of technical affairs for the Independent Insurance Agents of Texas, based in Austin. They can efficiently obtain underwriting information from the driver and search using a wide variety of insurance companies on the driver’s behalf.
“They can also educate that consumer, for example, about why certain carriers would decline to write them and why other carriers would be interested in writing them,” Roach said. “They will also be able to educate that consumer about the coverage choices that they’re making and what happens when they choose lower limits versus higher limits.”
Drivers can compare sample car insurance rates and coverages among Texas car insurance companies on HelpInsure.com, a website provided by the Office of Public Insurance Counsel (OPIC) and the Texas Department of Insurance. The website also includes complaint information and the financial rating of the top car insurers in Texas.
Learn More: Find and compare auto insurance policies in Texas — HelpInsure
Texas auto insurers offer a variety of discounts, enabling drivers to significantly reduce their premiums, Friedlander said. Some of the most common discounts include bundling home and auto, multi-policy, new vehicle, good driver, paying your bill in full, bundling auto and renters insurance, and electronic billing. Because Texas has a large population of active-duty military members and veterans, those individuals should check into military-affiliated auto insurance discounts.
Insurers also use telematics to track driving habits — such as time of day you drive the most, miles driven, and acceleration and braking patterns — to determine potential discounts, Friedlander added.
“Telematics is another great way to save for safe drivers,” he said. “If you decide to sign up for a usage-based telematics, it’s important to read the fine print of how the program works, as some insurers can ding you with a premium increase if their telematics app detects poor driving habits.”
Learn more: Car insurance discounts: 17 ways to save
An independent agent will discuss other lines of insurance that are suitable for each consumer, whether it’s homeowners, renters, or excess coverage (as in umbrella), Roach said.
“Once they develop a relationship with that consumer and learn about their exposures and what phase of life they are in today, they can work with that consumer to put together an insurance program that helps them feel more secure,” she said. “The consumer will leave the conversation feeling much more aware and knowledgeable about the choices they made.”
The amount you’ll pay for car insurance in Texas is impacted by a number of different factors — some you can control, like driving safely and improving your credit, and some you cannot, like your age.
While not all companies use the same information, here are the typical items that determine the cost of your car insurance policy:
Factors that can’t be used to charge more for car insurance or turn you down include the following:
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Your race, color, religion, or national origin
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Your age, gender, marital status, geographic location, or disability — unless the insurer can demonstrate you’re a greater risk for a loss than others
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If your credit score was the only factor in the decision
Learn more: What is a car insurance premium, and how is it calculated?
Drivers must demonstrate they have liability insurance that covers both bodily injury and property damage. Those financing vehicles must also buy collision and comprehensive coverage to satisfy their lenders’ requirements.
Once teenagers obtain their provisional license at age 16, they can drive unaccompanied by an adult, but they must abide by these restrictions until they are 18:
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They are prohibited from driving between midnight and 5 a.m. unless they are working, going to school, or if they or another person needs emergency medical attention.
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They can’t drive with more than one person under 21 who doesn’t belong to their immediate family.
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They can’t drive after drinking any alcohol, per Texas’s Zero Tolerance laws.
You can be cited with a DWI if your blood alcohol concentration (BAC) is 0.08 percent or higher, or if a lower BAC affects your ability to drive.
Learn more: What’s the difference between DUI and DWI?
First offense penalties:
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Initial fines as much as $2,000 and an additional $3,000 fine upon sentencing
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A minimum of three days in jail and a maximum of 180 days
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Driver’s license revoked for up to a year
Second offense penalties:
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Initial fines as much as $4,000 and an additional $4,500 fine upon sentencing
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A minimum of one month in jail and a maximum of a year
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Driver’s license revoked for up to two years
Third offense penalties:
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Initial fines as much as $10,000 and an additional $6,000 fine upon sentencing
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A minimum of two years in jail and a maximum of 10 years
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Driver’s license revoked for up to two years
If you’re driving while impaired with a child in the car, additional penalties include:
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An additional fine of as much as $10,000
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A minimum of two years in jail
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Driver’s license revoked for another 180 days
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Child endangerment charges
This article was edited by Tim Manni.
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