car insurance in texas

Lone Star state law requires all drivers to carry auto liability insurance. Also, if money is still owed on the car, lenders require drivers to carry collision and comprehensive coverage as well. Texas auto insurance policies cover damages, injuries, and other losses that are included in your policy. From time to time, review your policy and check the exclusions section that lists all the things it doesn’t cover. Become familiar with the Declarations page (first page of the policy) which lists important information such as your policy number and coverage/deductible amounts.

Texas auto insurance is supplemented by an auto insurance Consumer Bill of Rights. Geico, State Farm, or any other auto insurance company in Texas can send you a copy of your policy or policy renewal, which you should read to see how Texas law covers you.

Texas Drivers Responsibilities Statement

All Texas drivers must show proof of financial responsibility when it comes to paying for accidents for which they are at fault. Liability insurance is key for most Texas drivers. Under Texas law, each injured person is covered for a minimum of $20,000 and up to $40,000 for everyone involved in the accident, plus $15,000 in property damage. In Texas, this form of coverage is called ’20/40/15′ coverage. However, many Texas drivers may find that basic coverage is not adequate enough. Buy more than the basic policy if you think you will one day be responsible for an accident (poor show of confidence, but necessary!)

The penalties for violations of the financial responsibility laws of the state of Texas are severe. A fine of $175 to $350 is the penalty for your first offense. Additional offenses can result in fines of $350 to $1,000, suspension of your driver’s license, and possession of your vehicle by the state.