If you move to Texas or simply buy your first car, then you will need to need to buy car insurance. However, not just any policy will do. Like most states, Texas requires drivers to carry minimum levels of coverage to be able to drive legally. Those who don’t could face significant penalties.

Let’s take a closer look at what the Texas requirements for car insurance are, and the benefit of not only buying this coverage, but also increasing it to your satisfaction.

Why does Texas require car insurance?

Most states have established laws that help the authorities determine whose fault a car accident is when it occurs. These laws also influence how auto insurers are supposed to pay for different losses.

Texas uses an at-fault system, which means that drivers who cause accidents must not only pay for their own vehicle damage, but also the damage they do to other parties. In other words, if you hit another car from behind at a stoplight, then the accident is your fault. You might have to pay for the other driver’s vehicle repairs and their injury costs.

To ensure that you have the appropriate coverage to repay those to whom you cause harm, Texas has instituted a mandatory liability insurance requirement. Drivers therefore must always have coverage in place. If they don’t, then they could face significant penalties.

What are the minimum insurance requirements?

When you buy a Texas car insurance policy, you must have at least the following policy limits:

• $30,000 bodily injury liability coverage per person
• $60,000 bodily injury liability coverage per accident
• $25,000 property damage liability coverage

Liability insurance is often called at-fault insurance because it pays for the harm that you cause to others (who were not passengers in your car) when accidents are your fault. Bodily injury coverage applies to those third-party injuries while property damage coverage pays for damage to their vehicle or other property. Bodily injury liability coverage pays in split limits, so it will only pay up to $30,000 for one person’s injuries, but a maximum of $60,000 if more than one person gets hurt in a wreck.

Though these policy limits are required for you to be able to drive, there is no restriction on you buying more coverage. If you increase your liability coverage limits, then you will have more money available in case someone files a massive liability claim against you. You will significantly reduce your risk of having to pay out of pocket for these losses.

Keep in mind, liability coverage does not pay for any of your own damage from an accident. That’s why you should work with one of our agents to augment your policy with collision, comprehensive, uninsured motorist and other benefits.

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