Texas Car Insurance: Requirements

Texas has its own set of requirements for its residents when it comes to auto insurance. For information pertaining to specific state regulations consumers can contact the Texas Department of Insurance, located in Austin, by calling 800-252-3439 or by accessing their website at http://www.tdi.state.tx.us/. In the meantime there are some basic rules that everyone should know.

All Texans are required to maintain liability coverage on their vehicles at all times. Liability will pay for necessary medical and repair expenses for the other party following an accident for which the insured is responsible. The state has mandated a minimum level of coverage that is considered acceptable. Liability minimums in TX are:

• Twenty thousand dollars for medical expenses incurred by a single individual (driver who is alone in the car at the time of the accident)
• Forty thousand dollars for the combined medical expenses of all of the occupants of the vehicle when it was struck.
• Fifteen thousand dollars for any necessary property repairs, including those for the victim’s vehicle

Although it is not required it is strongly suggested that all drivers purchase a comprehensive and collision policy. This will pay for repairs to the vehicle of the insured following an accident that they have caused (liability will leave the party responsible holding the bag for the complete cost of their own repairs). In the event that the necessary repairs to the vehicle cost more than the car’s Blue Book value insurance will “total” the vehicle and award the owner the cash value of the car. Collision insurance may be required for vehicles still under lien, and for those vehicles whose Blue Book value is less than the balance on their lien for whatever reason gap coverage may be available. Gap coverage is intended to help “bridge the gap” in the event that the car must be totaled.

TX uninsured car insurance is also a wise investment. There are many states in the US that do not require liability insurance, and at any given point in time these drivers may be loose on Texas’s city street. In addition to accidents involving uninsured motorists this coverage will also assist those who become the unfortunate victims of a hit and run.