Texas Car Insurance Requirements

Texas vehicle owners are required to show their financial responsibility for any car accident they might cause. Most Texas drivers do this by buying car insurance, and state law requires certain minimum amounts of coverage when insurance is purchased. We'll discuss those minimums in this article, plus a few other important Texas car insurance rules.

Is Texas a No-Fault Car Insurance State?

Texas uses a "fault" system when it comes to liability for a car accident. In the words of the Texas Department of Insurance, a "fault" system is one that requires drivers to "pay for the accidents they cause." In most instances, it's the at-fault driver's car insurance company that pays for accident-related injuries and other losses.

What Are My Claim Options After a Car Accident In Texas?

In practice, Texas's status as a "fault" car insurance state means that after a traffic accident occurs, depending on the circumstances of the crash and the different car insurance policies that might be in play, an injured driver, passenger, or pedestrian may decide to:

• make a claim under their own insurance policy first (if they have personal injury protection or medical payments coverage for injuries, or collision coverage for vehicle damage; more on these later)
• seek compensation from the at-fault driver's insurance company, by filing a "third-party" claim with that driver's insurer, or
• go to court and file a personal injury lawsuit against the at-fault driver, seeking compensation for medical bills, property damage, pain and suffering, and other losses related to the accident.

(By contrast, "no-fault" states usually require a policyholder's own insurer to pay for their medical bills, lost income, and other out-of-pocket losses—up to certain minimums—regardless of who caused the accident. In no-fault states, an injured person must meet certain threshold requirements in order to step outside the no-fault car insurance system and make a claim against the at-fault driver.)

What Are the Minimum Car Insurance Requirements In Texas?

As touched on above, Texas requires drivers to demonstrate their financial responsibility in case they cause a car accident on the state's roads and highways. Most vehicle owners choose to comply with this requirement by purchasing car insurance. If you're buying car insurance in Texas, the law requires you to have the following minimum amounts of liability car insurance coverage:

• $30,000 for bodily injury liability per person injured in an accident you cause
• $60,000 for total bodily injury liability when two or more people are injured in an accident you cause, and
• $25,000 for property damage per accident you cause.

This basic coverage—known as "30/60/25" coverage for short—pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage.

Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Who Is Covered Under Liability Insurance In Texas?

Besides covering the policyholder when they're involved in an accident in their vehicle, most liability coverage will apply to:

• any member of the policyholder's family who is involved in an accident while driving the policyholder's vehicle, and
• anyone who borrows the policyholder's vehicle and gets into an accident, and

Liability insurance will also cover the policyholder if they get into an accident in a rental car.

Showing Proof of Car Insurance In Texas

You'll need to carry your insurance card or proof of insurance in your vehicle with you, in case you are asked to present it to a law enforcement officer during a traffic stop. Failing to carry insurance or to provide proof of insurance when asked for it can result in fines and other penalties, especially if you're involved in an accident.

Can I Show Digital Proof of Car Insurance In Texas?

Yes. Texas Transportation Code section 601.053 lets drivers use a digital device to produce evidence of financial responsibility.

The Minimum Required Car Insurance In Texas Won't Cover Your Own Losses

It's important to note that the liability coverage we've discussed here doesn't apply to your own injuries or vehicle damage after a car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. Let's look at a few options.

Do I Need "Personal Injury Protection" Car Insurance In Texas?

You're not required to have personal injury protection (PIP) in Texas, but car insurance companies must include $2,500 in PIP in any policy unless the customer declines PIP coverage in writing. If you don't decline PIP, you're free to increase the $2,500 minimum to a coverage amount that suits you.

PIP can be used to get your car accident medical bills paid pretty quickly, before any fault determination is made, since PIP applies regardless of who caused the accident.

The amount of PIP coverage you choose is "per person" injured in an accident. So if you go with the minimum of $2,500, you can make a PIP claim under your coverage, any passenger who was injured in that same accident while riding in your vehicle can also make a PIP claim under your coverage, and you can both receive up to $2,500 as compensation for financial losses resulting from the crash, including:

• car accident-related medical bills
• 80 percent of income lost because of the accident, and
• the cost of replacement services (including housework you're unable to do because of your injuries).

Remember that PIP won't apply to your vehicle damage.

Do I Need Collision Coverage In Texas?

It's not required, but it can come in handy. If your vehicle is damaged in an accident you cause, or if you're hit by an uninsured driver, collision coverage can pay for repairs to (or replacement of) your damaged vehicle after any kind of crash. Collision coverage is like no-fault car insurance for vehicle damage.

Do I Need Uninsured Motorist Coverage in Texas?

Texas does not require drivers to buy uninsured/underinsured motorist coverage, but it does require insurance companies to offer this kind of coverage, which can provide additional protection if you're in an accident with someone who has no car insurance, or whose policy limits aren't enough to cover your medical bills and other losses.

In Texas, all uninsured/underinsured motorist coverage is subject to a $250 deductible, which is the amount you must pay out of your own pocket before the insurance coverage kicks in.

Will My Texas Car Insurance Cover Me In Mexico?

A car insurance policy issued in Texas won't cover you in Mexico, but according to the Texas Department of Insurance, there are steps you can take to try to make sure you're covered while driving on the other side of the border:

• Some car insurance companies offer endorsements for short trips into Mexico, but you'll need to pay extra for it, and you'll also need to make sure that the coverage meets Mexico's legal requirements.
• If you're driving into Mexico, your safest move is probably buying a Mexican liability insurance policy, which some Texas insurance companies offer.

Are There Deadlines For Car Insurance Claims In Texas?

There's no law that sets a deadline for getting a car insurance claim filed in Texas, but the details of your policy might:

• set a claim-filing deadline (i.e. within 30 days after the accident) or
• require you to notify the insurance company "promptly" or "immediately" after an accident that could lead to a claim.

After you provide notice of a claim to your own insurance company, they usually have 15 days to respond and acknowledge your claim. And once your insurance company has all documentation and other information it needs from you, they have 15 days to accept or reject your claim. If the company denies your claim, it must tell you why, in writing.

Next Steps After a Texas Car Accident

The Texas Department of Insurance website offers more information on auto insurance in Texas, including advice on choosing the right coverage, and what to do after a car accident.

It's always a good idea to understand the car insurance rules where you live, but if you've been involved in a car accident in Texas, it might make sense to discuss your options with a lawyer, especially if you've been seriously hurt. Learn more about how a car accident lawyer can help if you've been injured in a crash.