Texas Auto Insurance FAQ
- What Does My Auto Insurance Policy Cover?
- What Are the Requirements for Liability Insurance?
- Who Does Liability Insurance Cover?
- What Is Collision Coverage?
- What Is Comprehensive Coverage?
- What Is Personal Injury Protection Coverage?
- What Is Uninsured Motorist Coverage?
- Are Other Types of Coverage Available?
- What Are the Penalties for Violating Texas Car Insurance Law?
- Does My Policy Cover Me Outside Texas?
1. What Does My Auto Insurance Policy Cover?
It depends on the types of coverage you choose to carry in your auto policy. Your insurance may pay for expenses covering repair and replacement of your car, medical expenses, court costs, towing, and others. The coverage you receive also depends on your deductible, which is the amount you must pay before any insurance payout will occur.
2. What Are the Requirements for Liability Insurance?
To meet Texas auto insurance law requirements, you must carry minimum liability insurance of $30,000 for each person who is injured — for a total of $60,000 per accident — along with $25,000 for property damage in any accident.
3. Who Does Liability Insurance Cover?
Liability insurance in your auto policy covers you and relatives who live with you, including your spouse, children and in-laws. It also covers other people who you give permission to drive your car, along with family members who are away from home while attending school. A spouse living in another home during a separation also is covered.
4. What Is Collision Coverage?
Collision coverage can be required by your auto loan lender if you financed your vehicle. It covers the cost of repairing or replacing your car in the event of an accident.
5. What Is Comprehensive Coverage?
Your auto loan lender will also require that you carry comprehensive coverage if you financed your vehicle. Comprehensive coverage pays to repair or replace your vehicle if someone steals it or if it becomes damaged due to fire, hail, vandalism or other events other than a collision.
6. What Is Personal Injury Protection Coverage?
PIP coverage pays medical expenses, along with a portion of your lost income after an accident, regardless of who was responsible for the accident. PIP coverage also pays for hiring a caregiver for someone who is injured in an accident. Insurance providers are required to offer you $2,500 in PIP coverage, but you also may buy additional coverage.
7. What Is Uninsured Motorist Coverage?
Uninsured/Underinsured Motorist coverage pays your expenses in the event you are in an accident caused by a driver with no insurance or without sufficient insurance. It also pays in the event of a hit-and-run accident. Insurance providers are required to offer UM/UIM coverage.
8. Are Other Types of Coverage Available?
Texas drivers can purchase coverage that goes beyond the minimum requirements of the state. These additional forms of auto insurance coverage in Texas can include:
- Towing and labor coverage
- Reimbursement for renting a car
- Stereo equipment
- New or additional cars
- Medical and funeral bills that result from an accident
9. What Are the Penalties for Violating Texas Car Insurance Law?
If you fail to have auto insurance as required by Texas law, you can be subject to fines and penalties, including:
- For a first conviction, fines of $175 to $350.
- For additional convictions, fines of $350 to $1,000.
- Potential suspension of driver’s license.
- Potential impoundment of the uninsured vehicle.
10. Does My Policy Cover Me Outside Texas?
If you drive in states other than Texas or in Canada, your auto policy should remain valid. However, if you drive in Mexico, your policy likely will not provide you with coverage; Mexico does not recognize auto liability policies written in the United States. Check with your provider to know where you are and aren’t covered!