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Why is it mandatory to have car insurance in Texas?

Being a Texan come with rights and responsibilities. One of them is to follow the law for your safety and all citizens. If you’re a driver -or a new one- and live in Texas, keep reading. This is substantial for you.

What is the purpose of auto insurance?

Most states require auto insurance for a simple reason: the law knows -based on statistics- each driver is likely to get involved in a car accident throughout their life, and most of which could not afford the outcome for themselves let alone, another party.

Additionally, causing a car accident without any insurance will affect your financial situation while you’ll try to cover the total cost for you and the other driver. Besides, could run into legal troubles to do not follow the rules.

Which kind of coverage do you need to have at minimum?

You can get a policy that fits your needs, but at minimum,  you need liability coverage. This policy protects a third party if you collide with them. It can pay any necessary medical bills and other expenses. 

Texas laws require 30/60/25 coverage.

What does this mean?

* $30,000 of coverage for injuries per person

* $60,000 per accident

* $25,000 of coverage for property damage

In short words, it doesn’t protect you or pay for your damages. That’s why it’s important to consider additional coverage that protects your car, your health, and your passengers.

In Texas, around 20% of people are uninsured and it’s a dangerous number because liability coverage doesn’t protect you from them. If they are at fault in a car accident they couldn’t pay you.

Types of insurance coverage in Texas

Liability coverage

Is the minimum required by law and it only brings protection to the other driver  if you are at fault in a car accident. But if the damages exceed the 30/60/25 amount you’ll have to pay out-of-pocket or you may struggle with a lawsuit.

Collision coverage

Repair or replace your car after an accident. It works if you hit an inanimate object like lampposts. 

Comprehensive coverage

Protects you against things that are out of human control things like fire, flood, vandalism or deer accidents.

Medical payments coverage

It’s about your well-being. It pays for you and your passengers’ medical bills in case of a car accident.

Uninsured coverage

Can pay for a hit and run accident or if you are hit by an uninsured driver.

Rental reimbursement coverage

Pays for a rental vehicle if your car is stolen or repaired after an accident.

Source: Texas Department of Insurance

What happen if you don’t have auto insurance in Texas?

Think twice before take lightly this requirement. The fines for uninsured drivers are expensive, more than a policy. 

The first offense could cost between $175 and $350, subsequent offenses could be fines up to $1,000, license suspension, and policies could take your car and your driver license and recover one of them it’s most expensive and complicated than you think.

What are the benefits of car insurance in Texas?

It’s not only necessary to follow the law, but car insurance could also help you in a variety of ways. Let’s say you’re an excellent driver but most people aren’t, right? Be honest, even when you’re driving at least once you thought that. 

Texas Department of Transportation reports that in 2018 there’s no day without car accidents on Texas roads. That’s a shocking fact and proof everyone is susceptible to get involved in this situation. 

1. Financial Liability

Will you burn your money? When you don’t have auto insurance it seems like that. Auto insurance gives you financial support to repair all the damages occured during a car accident. When you’re covered it’s like a deal between you and your insurance company.

In a car accident you may only need to pay your deductible and your insurance company may pay for the rest of the damages. Without, you might pay for all your losses and that could affect your financial situation for several years.

2. May cover you from a lawsuit

Auto insurance gives you the benefit to potentially avoid lawsuits and get involved in that complicated process. They can provide you with lawyers and take care of you and your situation.

3. You can recover your losses and damages

Depends on your type of coverage (like comprehensive or collision) you don’t need to worry about damages or a total loss of your car.

4. Protect you from paying medical costs

Car damages and losses hurt but nothing is more important than your well-being. There are types of coverages that protect you and your passenger in a car accident by paying for your medical bills.

What is the most important part of car insurance?

Type of coverage

Be sure you’re getting the right policy for your needs. If you have sons you need to have special coverage for that or if you want your car for uber service you may need separate coverage for that. 


It’s what you have to pay out of pocket before your insurance company pays for their part. Each company has a minimum required deductible but you can increase it depending on how much you can pay.

The higher deductible, the lower premium and cost of your insurance. That sounds great but remember you’ll need a lot of money out of pocket after an accident. The thing about car insurance is to be covered in case of an accident. So, consider it!

You’re the person who decides how much you can pay now instead of how much you want to pay later.


Your premium is also determined by your type of coverage. The more security you want, the more you’ll pay. 


Look at the contract and see what is covered and what isn’t. It’s very important to clarify this point before signing the deal. Some policies could cover some natural disasters but not all or if you are in another country driving your car, damages caused intentionally by yourself or belongings inside your car.


Contracts always include rights and responsibilities for the stakeholders and an insurance contract isn’t an exception. Look what your responsibilities and obligations are as an insured driver and what the insurance agent’s duties , in a nutshell, to avoid misunderstanding when you need the insurance coverage service. 

There’s no reason to feel afraid when we talk about auto insurance. You might think at the beginning insurance coverage is expensive but how much does peace of mine cost? It’s worthy. 

Keep in mind what you need and look for the best rate for your budget. Driving without protection is a risky decision and may infringe your legal and financial situation.

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