AUTO INSURANCE REQUIREMENTS IN TEXAS: Do I have to have it?

The simple answer is; yes. The State of Texas requires that you carry LIABILITY coverage – current minimum required is 30/60/25 ($30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident).

Why? Drivers are obligated to pay for the costs of the accidents they cause. Liability insurance coverage covers many of these expenses incurred by an insured’s negligence or wrongdoing. These expenses include:

   • Car repair or replacement costs
   • The cost of a car rental
   • Medical and funeral costs, lost wages, compensation for pain and suffering

If your vehicle is financed, your lenders will likely require that a you carry PHYSICAL DAMAGE (aka collision and comprehensive coverage).

What’s not required, but worth understanding and considering:

   • Car repair or replacement costs
   • Personal Injury Protection (PIP) coverage
   • Med Pay
   • Uninsured/Underinsured motorist coverage (UMBI/UMPD)
   • Towing and Labor coverage
   • Rental Reimbursement coverage

Still have questions? More information is available at the Texas Department of Insurance.