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Texas State Minimum Auto Insurance Requirements (2021)

When it comes to auto insurance, each state has its own set of requirements. However, Texas legally requires drivers to get auto liability insurance in order to cover the cost of potential accidents. As a fault state, Texas mandates minimum requirements to get auto insurance.

Besides, getting auto insurance in Texas reflects your financial responsibility. Remember that auto insurance coverage can cover the cost of benefits to injured individuals in the event of an accident. However, the insurance doesn’t cover the cost of damages or injuries to the vehicle.

With changing laws and mountainous technical information, auto insurance has become a complicated topic for drivers across Texas. So, it makes all the more difference to learn about the minimum auto insurance requirements.

Let’s look at the minimum auto insurance coverage requirements set forth by Texas in 2021:

Auto Insurance Coverage in Texas: You Don’t Have to Go All In

Drivers in Texas don’t have to buy the most expensive auto insurance coverage. The right course of action would be to opt for coverage that suits your budget. Plus, paying excessive auto insurance coverage can make you a prime target for lawsuits.

But drivers with better auto insurance coverage are better off than drivers with minimum coverage. As a driver, you don’t want to attract unwarranted attention. Just make sure you have a balanced approach to buy auto insurance coverage in Texas.

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Minimum Requirements of Auto Insurance in Texas

As a fault state, Texas requires drivers to get liability insurance. According to updated Texas auto insurance guidelines and laws, drivers need to adhere to minimum liability insurance coverage amounts.

BI or Bodily Injury Liability

If you cause an accident, BI offers $30,000 per person for an automobile accident. But it covers more than $60,000 for bodily injury when multiple people get injured.

BI coverage is ideal when there are multiple injuries involved. You can ease the pain and sorrow of victims through BI as it can cover their medical bills and lost wages.

PD or Property Damage Liability

If you cause an accident, PD will cover the cost of $25,000. It is crucial to understand that PD coverage covers the damage “you” cause to another individual’s property. And the damage is not always a vehicle. Instead, it could be a mailbox or other property item.

Pitfalls of Not Getting Auto Insurance Coverage in Texas

Without auto insurance coverage in Texas, drivers can get a suspension, fines, and impoundment. Without auto insurance coverage, drivers are more vulnerable to lawsuits due to their inability to cover accident costs. In fact, Texas law enforcement makes sure drivers have suitable auto insurance coverage.

Other Auto Insurance Coverage Options

In most cases, you probably will have to get other kinds of auto insurance coverage like:

Underinsured Motorist Coverage

UMC comes into the picture when a person causes a car accident and doesn’t have coverage to cover the expenses. As the title suggests, underinsured motorist coverage is ideal to cover the additional costs.

Uninsured Motorist Coverage

If a driver causes a car accident without insurance coverage, this type of insurance coverage option will cover “your” expenses. It means you won’t have to cover the out-of-pocket expenses.

Comprehensive Insurance Coverage

If harsh weather, falling object, or theft causes damage to a car, then comprehensive insurance coverage can cover the cost of replacement or repairs of the vehicle.

Collision Coverage

If you caused an accident on your own, collision insurance coverage offers compensation to cover the replacement or repairs of the vehicle.

Personal Injury Protection Insurance Coverage

Even in 2021, drivers still confuse PIP with medical payments insurance coverage. In short, PIP covers the costs for you and involved passengers in a car accident. PIP also covers the costs for funeral expenses, child care, and lost wages.

Medical Payments Insurance Coverage

Yes, this type of insurance coverage is not so different from personal injury protection. It covers the cost of medical bills for you and involved passengers in an accident. This type of insurance coverage also covers the cost when you’re hurt while riding another person’s car.

On the other hand, you can also get rental reimbursement insurance coverage and towing and labor insurance coverage in Texas.

Texas’ Minimum Coverage Requirements for FR-44 and SR-22 Policies

If you’re driving license is suspended because of an accident, you will have to file an SR-22 (Financial Responsibility Insurance Certificate). It will confirm that you have updated liability insurance coverage. The current minimum insurance coverage required by Texas is $30.

Sum Up

Ideally, you should compare various auto insurance quotes from reputable car insurance companies in Texas. It is best to ensure Texas’ minimum auto insurance requirements. In essence, your objective should be to get the most out of your auto insurance and get the ultimate protection.

If you’ve had any involvement in a car accident, the last thing you want to do is get caught in the cobweb of medical bills and cover the costs of property damage. Instead, get suitable auto insurance coverage to compensate for damages and cover financial loss.

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