Texas Car Insurance Rules and Regulations


Are you considering moving to Texas or currently residing there but thinking about looking for a new auto insurance carrier? If so, it is important for you to understand a little bit about Texas car insurance rules so that you can ensure you're purchasing the correct level of coverage.

Texas Financial Responsibility Laws

In the state of Texas, every driver is required to have automobile liability coverage on the vehicle he is driving. There are no alternative methods for proving financial responsibility and there are absolutely no exceptions to this rule, no matter what type of vehicle you are driving.

Texas Minimum Liability Requirements

Texas car insurance rules state that all drivers must carry a minimum amount of bodily injury liability and property damage liability. The bodily injury liability minimum is $20,000 per person with coverage up to $40,000 for the entire accident. The property damage liability minimum is $15,000 per accident.

Optional Car Insurance Coverage in Texas

Every state has different rules regarding the coverage options that are mandatory versus optional. Texas car insurance rules only mandate you purchase the liability coverage options mentioned above. There are, however, several other coverage options available to drivers. These include:

- Uninsured car insurance – to pay for damages to your vehicle or self if you are involved in an accident with an uninsured driver. This coverage is important because some states do not require their drivers to purchase any insurance at all. Gap insurance - to pay for the difference between the Kelley Blue Book value of your vehicle and the amount you may still owe on a loan if your car is totaled and you need to continue making payments to the finance company.

- Comprehensive and collision coverage to pay for damages that you may cause to your own vehicle should you cause the accident yourself. Collision covers damage caused by an actual impact (or collision) and comprehensive covers damages caused by fire, theft, vandalism, and other uncontrollable risks.

Finding Texas Car Insurance

You have several options for finding cheap car insurance in Texas but the best is to simply use our site to search online. All you have to do is enter your personal data, one time, and we'll use it to shop your insurance to several qualified carriers. You'll compare the quotes, decide which is best for you, and be well on your way to complying with Texas car insurance rules!

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