It’s sometimes a surprise that auto insurance Texas requirements are not the same as in every other state. In fact, each state is allowed to come up with its own individual rules and laws on auto insurance for their inhabitants. Texas has many particular requirements and penalties that all drivers in the state should be familiar with so that they do not run afoul of the lawman.
Texas like most states maintains requirements for how you are capable of paying for any and all injuries and damages if you are in a car accident for which you are at fault. The way that Texas expects for most people to fulfill this legal requirement is through purchasing liability auto insurance. Assuming that you decide to meet the law’s auto insurance requirements through the liability insurance route, there are certain minimum limit amounts that your policy has to carry. You must have:
Auto Insurance Texas – Requirements
- $60,000 per incident for injuries
- $30,000 per person for each injured individual
- $25,000 for any property damage
Besides these amounts and coverage, there are other kinds of optional auto insurance coverage that can safeguard you and your finances. These include the following:
Comprehensive Coverage – assists with any damages to your car that are unrelated to car accidents. This would cover hail that falls and makes dents in your car, for example.
Collision Coverage – covers damage your vehicle suffers from because of accidents with other vehicles on the road.
Under-insured/Uninsured Driver Coverage – protects you from damages inflicted by the 20% of present Texan drivers who are illegally uninsured.
Towing and Labor – pay for tow trucks and towing labor should you break down or be involved in an accident.
What else do I need to know?
There are some alternatives to buying auto insurance Texas drivers should purchase. The state offers some additional means of demonstrating your financial responsibility to cover accident costs. You could purchase surety bonds from two separate sureties who are property owners in the state of Texas. However, the limited coverage will have to be the same as with the liability insurance requirements. This means that you need a $55,000 cashier’s check or cash deposit with the county judge where the car registration is on file. You also need a $55,000 securities deposit or cash deposit made with the state Comptroller.
Alternatively, you could provide a certificate of self-insurance. In order to be eligible for self-insurance and the accompanying certificate, you must possess a fleet of in excess of 25 cars. This form of proof of financial responsibility is really intended for businesses with fleets of cars or other commercial driving enterprises.
Carrying proof of auto insurance in Texas is not only a good idea, but it is also the law. The company that provides your auto insurance will supply an insurance card that you can utilize for your proof of auto insurance. You must be ready to show this to any Texas law enforcement officer upon demand when you are in your car.