Texas Auto Insurance Guide

Texas has a lot of wide, open spaces, and Texans need a good car that can take them to those places. The state wants drivers to be safe on the road, so they have imposed traffic laws and other regulations to keep drivers safe. One of Texas's requirements for drivers is that they assume financial responsibility when they are on the road. This usually involves buying auto insurance in Texas.

Texas Insurance Regulations

Texas auto insurance laws don't require drivers to purchase insurance, although for most people, that is the most convenient option. Drivers can file a surety bond with the county clerk, make a deposit of $55,000 with the county comptroller or county judge, or certify that they are self-insured with the Texas Department of Transportation. The self-insurance option is only available to people that own 25 or more cars, so it is usually only used by dealers, and perhaps a few ultra-rich car collectors. Those that don't have $55,000 in cash lying around will need to buy auto insurance in Texas.

Mandatory Minimum Coverage in Texas

If a car owner purchases auto insurance in Texas, they are required to purchase a minimum of $25,000 in bodily injury liability coverage for one person, $50,000 in bodily injury liability for everyone involved in an accident, and $25,000 in property damage liability per incident. Drivers are welcome to purchase more insurance if they wish; if they have an auto loan, their lender may require them to purchase uninsured, underinsured, comprehensive, and collision insurance.

Motorcycle Coverage Requirements

The auto insurance requirements in Texas also apply to motorcycles. Although it is not a required component of auto insurance in Texas, motorcycle riders that plan on carrying passengers on their bikes should consider purchasing guest liability insurance as well. The normal liability insurance that is a part of the required auto insurance coverage does not include passengers, but a passenger on a bike could sue if they are injured in a motorcycle accident.

Texas Auto Insurance Advice

According to the Texas department of insurance, 20% of drivers in the state could be uninsured at any given time. Uninsured and underinsured insurance isn't very expensive, and it could save you a lot of headache if you ever do get into an accident with someone who does not have any (or enough) insurance. You can save money on auto insurance in Texas by paying the entire six-month policy up front, or by raising your deductible. Driving carefully and maintaining an excellent credit score will also help you lower your auto insurance rates.