Texas Minimum Car Insurance Requirements

Like most states, Texas has a financial responsibility law that requires drivers to demonstrate that they are able to pay for damages in accidents they cause. Most drivers in Dallas achieve this by purchasing auto insurance. You must carry at least the minimum coverage limits that the state requires, although you may choose to purchase additional coverage for your protection.

Minimum Auto Insurance Requirements in Texas

Texas only requires that drivers carry liability insurance. Basic liability pays for the people in the other car in an accident that you cause.

The minimum coverage you must carry is: 

  • $30,000 per person;
  • $60,000 per accident; and
  • $25,000 for property damage per accident.

This is referred to as 30/60/25. It’s highly recommended to consider buying additional coverage to increase your policy’s limits. With the increasing cost of medical care and auto body repair, the minimum limits might not be enough to adequately cover the damages of the other party if you’re ever at fault in an accident.

If you don’t carry enough coverage, the other party will be able to sue you for the difference to recover their damages.

Additional Types of Coverage

Basic liability insurance only covers the other party’s damages; it does not cover you or damage to your vehicle. If you are still making payments on your vehicle, your lender may require you also keep collision and comprehensive coverage that will cover the cost of replacing your car if it’s damaged. There are other types of coverages available that you’ll want to consider.

There are three chief types of additional coverage to talk with your agent about: 

  • Uninsured/underinsured bodily injury: uninsured/underinsured motorist insurance covers you if the other party has insufficient or no liability insurance, or in the case of a hit and run. Texas requires drivers to carry $30,000 per person and $60,000 per accident unless you reject the coverage in writing. 
  • Uninsured/underinsured property damage: Texas requires drivers to carry a $25,000 minimum with a $250 deductible to cover damage to your vehicle if the other driver is at fault and has insufficient coverage. You can choose to reject this coverage in writing, but with all the uninsured drivers on the road, this is not advisable. 
  • Personal Injury Protection (PIP): PIP covers the medical payments coverage and 80 percent of lost income for you, your family members, and passengers in your car, regardless of who caused the accident. Texas requires insurance companies to offer drivers at least $2,500 in PIP. You can select this amount, purchase more, or reject the coverage in writing.

Legal Help from an Auto Accident Liability Attorney

The repercussions of not keeping adequate auto insurance are quite weighty. Not only you risk lawsuits, but you will also face fines of up to $1,000, driver’s license suspension, and vehicle impoundment if you’re repeatedly caught driving without insurance. Auto insurance may be difficult on a family’s budget, but it’s not worth the risk of letting it lapse.

For questions regarding insurance, liability, or claims in Dallas, contact attorney Julie Johnson for a free consultation today: 214-290-8001.

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