What are state minimums for car insurance in Texas?

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Things to remember...
  • In the United States, it’s customary that each state has its own minimum coverages for automotive insurance
  • In most states, including Texas, drivers are no longer required to purchase insurance for vehicles that are inoperable
  • Although state minimums are designed to make the roads safer and reduce financial risk to drivers, drivers who drive often or who have a history of accidents are recommended to purchase more coverage

In the United States, it’s customary that each state has its own minimum coverages for automotive insurance. These minimums insure that each driver on the road has at least some financial coverage in the case of an accident where they are found to be at fault.

Although there are exceptions in certain states, Texas requires a minimum of 30/60/25 coverage. Make sure you are getting the best rate with our free quote tool above! 

Understanding Types of Insurance

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There are several different types of automotive insurance, providing for different occasions and types of accidents. In general, these different types can be explained as follows:

  • Bodily Injury Liability  One type of liability insurance, insurance meant to protect you if you’re found to be liable (or at fault) in a car crash. This specific type is meant to cover bodily injuries for passengers in other vehicles that are involved in the crash. This is usually rolled into one plan with property damage insurance.
  • Property Damage Liability Like bodily injury liability insurance, this type is meant to cover the driver who is found to be at fault. This type protects against financial liabilities if property is destroyed in a car crash, often (but not always) involving the other car. This is often combined into one plan with bodily injury coverage.
  • Personal Injury Protection (PIP) This type of insurance is meant to insure the driver against injuries inflicted upon themselves, regardless of who is found liable for the crash. It can also be used to account for wages lost as a result of a crash, often from drivers missing work after collisions. The state of Texas requires all insurance companies to offer their customers PIP, with most benefits ranging between $2,500 and $5000.
  • Collision  Exactly what it sounds like, this type of coverage covers damage to the driver’s own car, designed to repair or replace parts after a crash. This coverage does not only provide financial safety in the event of a two-car collision but also in the event of a crash into a tree or other inanimate object.
  • Comprehensive Considered a vital type of coverage to hold, comprehensive plans protect against financial debt in instances that do not always involve a car crash. These plans cover automotive theft, fires that damage the vehicle, hitting animals, and a variety of other conditions.
  • Uninsured and Underinsured Motorist CoverageAlthough all drivers in the state of Texas are required to have insurance, that is not always the case. This coverage protects against collisions where another driver is found to be at fault but doesn’t have insurance.

Usually, insurance policy minimums will be written in a set format which consists of the amount in thousands of dollars in the order of bodily damage or death for one person, multiple people, and property.

In Texas, for example, the minimums are

  • $30,000 because of bodily injury to or death of one person in any one accident and subject to the limit for one person;
  • $60,000 because of bodily injury to or death of two or more persons in any one accident;
  • and $25,000 because of injury to or destruction of property of others in any one accident.

This is written as 30/60/25 coverage. Although it can be hard to get a handle on how insurance policies are written, they’re simple once you know that the minimums are always written in that order.

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– Other Texan Laws

In the state of Texas, drivers are also required to prove that they can be financially responsible for any fees that might result from an automotive accident. They are considered to have taken financial responsibility when a vehicle has been officially and legally registered in their name.

In most states, including Texas, drivers are no longer required to purchase insurance for vehicles that are inoperable.

They are, however, required to return their state-issued license plates to a DMV location to insure that the vehicle is not used. They can also submit their vehicle and title to the DMV for demolishing.

These laws are designed to insure that every vehicle on the road has someone who takes financial responsibility for any damages that result from its operation.

Being found in violation of these laws by driving without valid insurance is a misdemeanor, the first offense consisting of a fine between $175 and $350.

In subsequent offenses, these fines increase to between $350 and $1,000, and the driver can have their license and registration revoked until proof of insurance is provided to a local DMV.

– The Trap of Minimum Coverage

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Although state minimums are designed to make the roads safer and reduce financial risk to drivers, drivers who drive often or who have a history of accidents are recommended to purchase more coverage.

The bills resulting from all but minor accidents are usually higher than what minimum coverage offers the average driver, so most industry experts recommend at least $100,000 in coverage for each involved person and $300,000 for the accident as a whole.

Car insurance is offered from a variety of companies in each state, and drivers are recommended to find the plan that suits them every customer is different and has different needs, so don’t be afraid to spend time shopping around before you decide on coverage.

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