What type of vehicle insurance coverage is required in Texas?

When it comes to Texas state law, vehicle insurance coverage, specifically for liability is a required policy. As a driver, you’ll be required to at least meet the state’s minimum requirements for liability coverage for any third parties. So, this comprehensive guide will help you to explore the details of the vehicle insurance coverage that is required in Texas, including the coverage benefits and some of the best companies in Texas that offer this policy. And if you have any further questions at the end of this article, feel free to leave it in the commend box for our experts to answer.

What is vehicle insurance coverage?

Vehicle insurance is a type of auto insurance policy that pays for damages to your vehicles, including cars, trucks, and motorcycles. If your car is damaged in an accident, collision, or natural disaster, the insurance plan helps cover the repair costs. Additionally, if someone is injured, the policy includes liability coverage for third-party medical expenses and property damage.

Types of vehicle insurance coverage in Texas

There are various types of vehicle insurance coverage available in Texas, each differing among policy providers in terms of cost, limitations, and benefits. The main types in the USA and Europe generally include:

Collision Coverage: Collision coverage pays for damages to your vehicle resulting from road accidents or collisions. When such damage occurs, your policy covers the repair costs, with the maximum benefit depending on your provider.
Third-Party Liability Coverage: This coverage is for individuals who may be injured or have their property damaged in an accident involving your vehicle. Medical expenses for the injured and costs for property replacement are covered within the policy.
Comprehensive Damage Insurance: This insurance protects your vehicle from damages due to theft, natural disasters like floods and fires. It’s not mandatory in some states but is a beneficial coverage type regardless.
Property Damage Insurance: Property damage coverage pays for damages your vehicle causes to others’ properties during an accident. This includes damages such as crashing into someone’s backyard or fence.
Uninsured Motorist Coverage: This coverage protects you and your passengers if you’re involved in a collision with an uninsured driver. It covers medical expenses, vehicle repair costs, and property damage expenses resulting from the collision.

What are the car insurance requirements in Texas?

Under Texas law, you must have at least $30,000 of coverage for injuries per person, up to $60,000 per accident, and $25,000 for property damage. This is referred to as 30/60/25 coverage. While these are the minimum requirements, it’s advisable to have insurance that exceeds these limits to protect yourself from having to pay out-of-pocket costs in case of a costly accident.

What is full coverage insurance in Texas?

Full coverage insurance in Texas typically refers to a combination of coverage types, including:

Liability insurance: It must meet the state’s minimum requirements, as it is intended to cover any third party who gets injured or suffers property damage during an accident.
Collision coverage: That pays for damage to your car from accidents or collisions.
Comprehensive coverage: Which covers non-collision-related damage, such as theft, vandalism or natural disasters.

All these types of insurance coverages ensure wider protection for both you and your vehicle in various scenarios.

Do you need car insurance in Texas?

Absolutely! Especially if you frequently drive, having a car insurance policy provides peace of mind on the road. Accidents can happen unexpectedly—you might collide with a stationary truck, slide off the road, or damage someone’s property. These incidents can occur anytime you’re driving. Having car insurance protects you from costs that come about due to these accidents, including repairing your car, covering property damage, and medical expenses for injured passengers.

Paying these expenses out-of-pocket can cause financial strain. Therefore, it’s wise to have a policy covering all these situations.

What are the factors that affect the cost of Vehicle Insurance Premium?

The cost of vehicle insurance premiums is influenced by several factors, including:

Vehicle Type: The make, model, and age of your vehicle influence the cost, with more expensive or high-performance cars often costing more to insure.
Coverage Amount: Higher coverage limits and additional coverage options increase premiums.
Claims History.
Location: Where you live affects premiums; urban areas typically have higher rates due to increased risk of accidents and theft.
Driver’s Age and Gender.
Driving History.

Best vehicle insurance companies in Texas

Listed below are some of the best vehicle insurance companies in Texas

Progressive: In Texas, the average premium cost is around $625, which includes various coverage benefits such as liability, uninsured and underinsured motorist protection, medical payments, personal injury protection, and comprehensive coverage. Alternatively, with Progressive, you can opt for liability coverage at an average monthly cost of $105.
State Farm: State Farm provides affordable car insurance rates for various drivers in Texas. You can obtain minimum liability coverage for as low as $50 per month on average, and full coverage for around $189 per month. Their policies include protection against collision damage, bodily injury, property damage, and also offer comprehensive coverage.
USAA: USAA offers cost-effective car insurance for Texas drivers. They are known for providing some of the most affordable and high-quality vehicle insurance options, including coverage for collision, liability, and comprehensive needs.
Geico: As a Texas car owner with Geico insurance, the average monthly cost for the state’s minimum liability coverage is around $63. If you opt for full coverage, the average monthly cost rises to about $195. However, you can reduce your expenses by taking advantage of the discounts offered by the company.
Nationwide: In Texas, Nationwide vehicle insurance offers affordable rates and a variety of policy discounts. Their coverage includes collision, comprehensive, and liability protection. You can select a plan that best fits your vehicle’s needs and enjoy comprehensive protection while driving.

Editor’s Remarks

Owning a vehicle and having insurance coverage for it is highly advantageous for car owners. Since a vehicle is a significant investment, protecting it ensures you protect yourself from potential future expenses or financial losses in case of an accident. Therefore, ensure that you have insurance coverage for it, and in case there are still some things you haven’t understood about the policy, feel free to explore our article anytime.

Frequently Asked Questions

What kind of car insurance do you need in Texas?

In Texas, it is mandatory for car owners to have liability insurance with a minimum coverage of $30,000 per person, up to $60,000 per accident, and $25,000 for property damage. These are the minimum required coverages. Other types of coverage, such as collision and comprehensive insurance, are optional.

What type of insurance coverage are you required to carry in Texas?

In Texas, all drivers must have liability insurance to protect third parties involved in an accident, covering bodily injuries and property damages. Drivers can also buy additional coverage to protect themselves and their vehicles in case of an accident.

What are the three types of generally mandatory minimum vehicle insurance in Texas?

The following are the three types of vehicle insurance required by Texas state law:

– 30,000 bodily injury liability per person.
– $60,000 bodily injury liability per accident.
– $25,000 property damage liability per accident.

Does Texas require collision insurance?

Collision insurance is not required in Texas, but as a car owner, you can choose to add this coverage to the mandatory insurance to fully protect your car from various unforeseen circumstances.

Is uninsured motorist coverage required in Texas?

Uninsured Motorist Coverage is not required by the state, but many insurance providers offer it because it can be very helpful if you’re involved in an accident with an uninsured or underinsured motorist.