Texas Auto Insurance Guide
Whether you’re taking in a concert in Austin, cheering for the Cowboys in Arlington, watching Astros baseball in Houston, doing business in Dallas
or driving along the Rio Grande to Laredo, the Lone Star State has thousands of miles of places to go. From El Paso to Port Arthur, Odessa to Nacogdoches, and all points in between, sightseeing or commuting,
car insurance
is crucial to being a responsible Texas driver.
Auto Insurance Resources for TX State Residents
As of 2010, there were more than 13.5 million licensed drivers in the Lone Star State. The Insurance Research Council estimates that 15% of
Texas drivers are uninsured; some sources put the number as high as 22%. That number rises to 25% in the Panhandle and South Plains counties.
In 2008, the Texas Department of Transportation Motor Vehicle Crash Facts reported that 242,698 people were injured in traffic crashes, 84,508
seriously. That same year, 3,468 people died in car accidents, with August and October tying as the two deadliest months on Texas roadways. Rural
crashes account for 54.1% of all traffic fatalities. 56% of those killed were not wearing their seat belts. Uninsured and reckless drivers are
good reasons to make sure you have enough car insurance while living and driving in the Lone Star State.
Texas State Minimum Auto Insurance
Texas state law requires you to carry a minimum amount of car insurance or face severe penalties. The Lone Star State has a tort-based system.
That means if you cause an accident, you can be sued. While Texas does not require you to carry uninsured/underinsured motorist coverage,
additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the
minimum requires shown below:
- $25,000 bodily injury per person per accident
- $50,000 bodily injury for all persons per accident
- $25,000 property damage liability
*NOTE: Effective January 1, 2011 – Texas minimum auto liability insurance will increase to $30,000/$60,000/$25,000, respectively.
Texas State Car Insurance Laws
Texas law requires that you carry proof of Texas auto insurance in your vehicle and produce it if a law enforcement officer asks to see it.
Texas uses a financial responsibility verification program, Texas Sure, that gives law enforcement officers real-time access to VIN-based insurance
information. If your VIN comes up as being uninsured, you will be cited and fined. Fines range from $350 for a first offense to $1,000 for a
second offense.
If you’re a repeat offender, you may also have your driver’s license suspended for 2 years. In addition, you will receive points on your driving
record. In Texas, anyone who accumulates 6 points in a 3-year period is assessed a fee of $100, plus an extra $25 for every additional point.
Texas also has a “two strikes and you’re out” law for uninsured drivers that allow the police to impound for 180 days any uninsured vehicle
if the owner has been issued a warning.
Regulating Agency and References
Texas Department of Consumer Help
This agency is responsible for regulating vehicle insurance policies sold in Texas. For more information, visit their website at
www.tdi.state.tx.us.
Texas Department of Transportation
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about Texas auto insurance
requirements, penalties and related information at
www.dot.state.tx.us.
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC
provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government
officials who regulate the conduct of insurance companies and agents in their respective states or territories.
Visit NAIC at www.naic.org
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at
www.iii.org/
Related Car and Motorist E Insurance Articles
Filing a Car Insurance Claim. What Happens After the Crash?
Could Auto Refinancing Help You Get Cheaper Car Insurance?
Traffic School Can Lower Your Auto Insurance Premiums
Filing an Auto Insurance Claim: OEM vs After-Market Parts