Texas Auto Insurance

Texas law requires that you have auto insurance to operate a motor vehicle.  That’s enough to keep the law from nabbing you, but usually not enough coverage with the price of other peoples’ cars these days.  If you see a $120,000 Bentley, we recommend admiring it from a very safe distance while driving.

After a home purchase, the second biggest investment most people make are on automobiles.  Roughly 25% of all drivers in the state of Texas do not have auto insurance.  This is why it is even more important to have your autos insured with the appropriate amount of coverage.  If you are involved in an accident, you could be responsible for the damages including car repairs, medical bills, and car rentals.  Let the insurance professionals at Ryan Everet Insurance Agency customize a plan that fits your needs and budget.

Explanation of State Minimum Liability Coverage in Texas:

Auto insurance is a legal requirement in Texas, and drivers must carry at least the state’s minimum coverage levels. If you are a new driver or simply want to brush up on your knowledge of Texas auto insurance laws, this guide will help you understand the state minimum requirements and why it is important to have adequate coverage.

What is State Minimum Auto Insurance in Texas?

In Texas, state law requires drivers to carry liability insurance that covers at least $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage. This coverage is often referred to as “30/60/25” coverage.

Liability insurance is designed to protect you if you are at fault in an accident and cause injury or property damage to others. It does not cover your own injuries or damage to your own vehicle. For this reason, many drivers opt to purchase additional coverage to protect themselves and their assets in the event of an accident.

Why is it Important to Have Adequate Coverage?

While state minimum auto insurance may seem like an attractive option for those looking to save money on premiums, it is important to remember that this coverage may not be enough to fully protect you in the event of an accident. If you are found to be at fault in an accident and the damages exceed your coverage limits, you may be held personally liable for the remaining costs.

For example, if you cause an accident that results in $50,000 in bodily injury costs for the other driver, but you only have the state minimum coverage of $30,000 per person, you would be responsible for paying the remaining $20,000 out of pocket.

In addition to liability coverage, drivers may also want to consider purchasing additional coverage, such as collision and comprehensive insurance, which can help cover the costs of repairing or replacing your own vehicle in the event of an accident, theft, or other covered incident.

How Can You Find Affordable Auto Insurance in Texas?

Finding affordable auto insurance in Texas can be a challenge, but there are several steps you can take to help reduce your premiums. Here are a few tips:

  1. Shop around: Compare quotes from multiple insurance providers to find the best deal.
  2. Consider a higher deductible: Choosing a higher deductible can help lower your monthly premiums, but be sure to choose a deductible that you can afford in the event of an accident.
  3. Take advantage of discounts: Many insurance companies offer discounts for things like safe driving, multiple policies, and good grades for student drivers.
  4. Maintain good credit: Your credit score can impact your auto insurance premiums, so be sure to maintain good credit by paying your bills on time and keeping your debt levels low.
  5. Drive safely: Maintaining a clean driving record and avoiding accidents and traffic violations can help keep your insurance premiums low.

Limits of liability and uninsured/underinsured motorist coverage is expressed as three numbers such as 30/60/25 or 50/100/50 for example.  The first number refers to the maximum amount of money (in thousands) your insurance will cover for bodily damage per person in an accident.  The second number refers to the maximum amount your policy will cover for bodily injury per accident (when there are two or more passengers in the car you hit), and the third number refers to the maximum amount of property damage that will be covered.  Property damage is mainly to replace or repair the other person’s car but also covers property inside their car that might have been damaged.

The State of Texas currently requires at a minimum that each driver carries 30/60/25 limits of liability, but we recommend higher limits of at least 100/300/100.  See why we recommend this below:

Example:

Let’s say you’re driving down the road and look down for 3 seconds and end up rear ending a $55,000 Chevrolet Suburban that has been pulled over and that Suburban gets pushed into on coming traffic.  The vehicle you accidentally tapped is now being hit head on by a large truck and the 2 people in the car you end up incurring $140,000 worth of medical bills.  In this case, if you only have the state minimum liability limits of 30/60/25, your policy will pay $25,000 for the car, and $30,000 for each person’s bodily injuries and $60,000 total. Since the policy only pays $25,000 for the other driver’s car  valued at $55,000 you would be on the hook for the $30,000 difference AND the $80,000 in medical bills that were not paid.

Do you have an extra $110,000 in your checking account?