If you’re a driver in the Lone Star state, this resource was designed with you in mind. We’ve researched Texas auto insurance requirements, coverage options, cheapest companies, and more–to provide you the inside scoop.
Texas Car Insurance Requirements
The law is the law. If you get into an accident or are pulled over, you have to be insured for the following, at minimum, or you can find yourself in a lot of trouble:
- $30,000 for each injured person
- $60,000 for injuries per accident
- $25,000 for property damage
Rarely is the bare minimum coverage enough. The following additional coverages are popular among Texas drivers, providing peace of mind and added financial support if you find yourself in a number of situations not covered by the state minimums.
Collision Coverage – If you smash your car into someone else’s, make sure you have this insurance to pay for the damage.
Comprehensive Coverage – Don’t end up paying for the damage yourself if you hit an animal, have storm damage, or fall victim to a vandal. This insurance can help pay for all of that.
Uninsured/underinsured Motorist Coverage – People driving around without insurance are ticking time bombs. If one hits you, expect to pay for it out of your own pocket if you don’t have this insurance.
Towing and Labor Coverage – Get a tow after an accident without having to pay for it if you have this kind of coverage.
Proof of Insurance
Proving you’re insured is just as important as making sure you are. While you will get an insurance card from your auto insurance provider when you get a policy, Texas government agencies verify proof of insurance electronically through the TexasSure program. The goal of it is to try and reduce the number of uninsured drivers in Texas—since it’s estimated that law-abiding Texas motorist end up paying close to $1 billion in extra costs in insurance premiums every year to help protect themselves against the millions of under and uninsured drivers. The following agencies use TexasSure:
- The Texas Department of Public Safety
- Police and sheriff departments
- Vehicle registration offices
The TexasSure program can detect issues with your car insurance information and may prompt you to receive one of the following notices:
Unmatched notices- You will receive this notice if you are recorded as having car insurance but the insurance doesn’t match with your car.
Uninsured notices- You may receive this notice if you have registered a vehicle with no record of insurance for the car.
Getting Caught Without Insurance
If you get caught driving without car insurance, you can face the following fines and penalties:
- You’ll pay $175 – $350 in fines for the first offense
- You’ll pay $350 – $1,000 in fines for additional offenses
- Your driver’s license could be suspended
- Your car could be impounded
Obey the law and you won’t have to worry about this.
How Your Rates Are Calculated
What an insurance company quotes you is based on a number of factors that help them determine your risk level. While many of the same variables are used from one company to another, companies can place more of an emphasis on certain ones. For example, one insurance company may see a PhD student as a lower risk then a student who only has a G.E.D. The second company may not use a drivers education level at all when providing quotes. That’s why insurance rates can vary so drastically for the exact same driver. Here are the most common factors that go into determining your rates:
- Driving/claims record
- Make and model of car
- Credit score
- How car is used
Texas Car Insurance Discounts
See if you qualify for the following popular discounts when shopping for car insurance:
- Safe Driver
- Claims Free
Additionally, the state also offers drivers ways to save. By completing a state-approved drug and alcohol driving awareness course, you will pay lower rates. If you are required to take this course as punishment for a DUI, you won’t be able to get the discount.
What Texans Pay For Auto Insurance
Our research shows that Texas drivers on average pay $1,211 a year in insurance—making it the 12th most affordable state. Here are the companies we found that provided the cheapest quotes:
|Average Annual Rates|
|Auto Club Enterprises Insurance||$703.33|
|Texas Farm Bureau Mutual||$775.61|
Insurance rates are unique to you, so it’s important to know how much drivers like you are paying. Here is our full analysis of the costs of car insurance in Texas.
Have you been deemed a high-risk driver and rejected by two insurance companies in the last 60 days? You can apply for insurance with the Texas Automobile Insurance Plan Association (TAIPA) if that happens. To do so, you must:
- Pay the full annual premium up-front or,
- Put down 20% of the policy or $40 (whichever is more), and pay eight installments throughout the year
After three years of a spotless driving record, you can probably get back on the horse and apply for insurance with another company. It might even be cheaper by that point, too.
Texas’s Most Commonly Stolen Cars
Ever heard of the expression, one bad apple ruins the bunch? It’s those rotten thieves in this case who love stealing certain cars. Since specific cars get swiped more than others, you’ll probably pay for it in higher insurance premiums. Here are the ones that go missing the most*:
- Ford Pickup (Full Size)
- Chevrolet Pickup (Full Size)
- Dodge Pickup (Full Size)
- Honda Accord
- Honda Civic
- GMC Pickup (Full Size)
- Chevrolet Tahoe
- Toyota Camry
- Chevrolet Impala
- Ford Explorer
*According to www.nicb.org
Agents Ready to Help with Your Texas Insurance Policy
With years of helping Texas drivers find the best insurance policies, our insurance agents can help you compare rates from top companies. Call to get a free quote today at 855-462-2213 .
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