(800) 253-1482How Much Auto Insurance Do I Need in Texas?
Summary: Texas drivers need at least the state’s minimum liability coverage, but that may not be enough. Accidents are common, especially in high-risk areas like Dallas and Houston. If you lease or finance a car, live in a high-theft area, or face severe weather risks, extra coverage can help. Uninsured motorist protection and higher liability limits can prevent major financial setbacks, especially with rising healthcare costs after an accident. Estimated Read Time: 6 mins
Table of Contents:
- Recommended Auto Insurance Coverage for Texas Drivers
- How Much Auto Liability Insurance Do I Need in Texas?
- How Much Property Damage Car Insurance Do I Need in Texas?
- Do I Need Comprehensive and Collision in Texas?
- How Much Uninsured Motorist Coverage Do I Need in Texas?
- How Much Medical Payments Coverage Do I Need in Texas?
- How Much Personal Injury Protection Do I Need in Texas?
- Need Auto Insurance? Compare Coverage Recommendations in Texas
Every driver in Texas needs at least enough liability coverage to stay legal on the road but that’s just the tip of the iceberg. Considering there’s an accident, on average, every minute of the year in the Lone Star State, how you protect yourself matters. Evaluating your personal risk and budget is key and you’re going to need to enroll in enough car insurance to ensure you aren’t left with major financial setbacks following a wreck, in the event your vehicle is stolen, or even incidents to your vehicle that happen when you’re not driving.
Recommended Auto Insurance Coverage for Texas Drivers
It’s one thing to have car insurance in Texas and another to be adequately protected.
Drivers have several options, allowing for personalized protection built through multiple coverages within a single policy.
The goal should be finding the right level of protection that also fits your budget, so that if there is a major loss, you’re prepared to restore it without exposing your financial assets.
These are figures that will vary for a couple of reasons:
- Everyone has different risks and budgets.
- Each coverage has a specific purpose and based on your personal risks, the limits that benefit you will look different than for others and vice versa.
Remember, it’s better to pay for an affordable premium and enjoy peace of mind than be left without a safety net, forced to cover the cost of your vehicle’s repairs, property damage to another party, and the rising cost of healthcare for affected parties.
How Much Auto Liability Insurance Do I Need in Texas?
Your liability coverage helps you cover losses related to bodily injuries and property damage suffered by other parties. However, if you simply follow the minimum coverage dictated by law, you may be forced to suffer tremendous financial losses.
For example, we’ll stick with looking at bodily injuries for now. Let’s say you have the minimum required liability coverage, cause an accident, and the injuries sustained by the other party were serious. Because you don’t have enough coverage, you’re paying for the rest out of pocket.
Increasing your bodily injury coverage limits is critical for accident-prone drivers or those living in areas more prone to serious accidents.
Residents of Harris, Dallas, and Bexar counties have more fatal accidents in the Lone Star State than anywhere, as these are major urban centers, as a result, drivers may benefit from higher bodily injury coverage limits.
Healthcare continues to rise, and if you’re at fault for an accident, you’ll need to cover these medical expenses. Without proper insurance, even if you’re legal, you could face legal action and the loss of assets.
How Much Property Damage Car Insurance Do I Need in Texas?
Just like bodily injury, if you don't have enough property damage coverage to match your assets, you could face serious financial consequences.
For example, if you only have $25,000 in coverage but cause more damage in an accident, you could be sued for the extra costs by the other party.
If they win, they could take money by garnishing your paycheck, or savings, or even put a lien on your home.
Do I Need Comprehensive and Collision in Texas?
Comprehensive insurance and collision coverage provide extra protection beyond basic liability only, making them a smart choice for many drivers. This is particularly true for the following drivers:
- Suppose you have a newer car or a vehicle with a higher value. In that case, these coverages help protect you from covering repair or replacement costs after an accident, theft, or other unexpected events. Without them, you’d have to pay out of pocket for major repairs, which can be financially overwhelming.
- If you have a loan or lease, your lender will likely require both coverages until the loan is paid off to help limit their risks.
- Even if you own your car outright or own an older vehicle, these coverages can still be beneficial, especially if you live in an area prone to theft, severe weather, or frequent accidents.
- Younger drivers typically cause more accidents, and because they are a higher-risk group, often benefit from having more coverage.
Furthermore, by combining comprehensive and collision coverages with liability, you’ll receive what is commonly known as full coverage. This unlocks discounts while protecting you from a wider range of perils.
How Much Uninsured Motorist Coverage Do I Need in Texas?
Carrying uninsured motorist (UM) coverage equal to or greater than your liability limits is essential for balanced protection, despite believing in everyone to do the right thing, too many often don’t insure themselves while out on the road.
In Texas, UM coverage typically includes underinsured motorist (UIM) protection, helping if the at-fault driver lacks sufficient coverage. Furthermore, Texas also allows stacking UM/UIM coverage across multiple vehicles or policies.
When choosing UM/UIM coverage limits, several factors should guide your decision, including rising medical costs, the potential for lost wages, and the value of your vehicle.
For underinsured drivers, you can still attempt to collect payment, but it’s often a long, complicated, expensive legal process.
You’ll have to take them to court, sue them for damages, and go through the stress of it all.
Hit-and-run situations are even worse because there’s no guarantee that you’ll even find the responsible party. Then, you’ll also have to go through a complex, expensive legal matter.
Furthermore, drivers who fail to maintain coverage are typically irresponsible and may not have the means to restore your losses, even after going through the legal process.
Additionally, your financial situation plays a role—consider how much you could afford to pay out of pocket if you’re hit by an uninsured driver.
Like other types of coverage, personal risk is the main consideration, and managing these risks with affordable insurance is the goal.
The best thing you can do is assess your risks while choosing an appropriate level of coverage that will protect you from paying large repair bills, legal expenses, and medical costs.
How Much Medical Payments Coverage Do I Need in Texas?
The idea behind your medical payments coverage (MedPay) is to cover healthcare expenses after a car accident, no matter who is at fault.
Therefore, if you're looking to avoid already expensive yet rising healthcare costs to passengers and other parties following an accident, consider limits ranging from $1,000 to $10,000 per person.
Ultimately, if you often find yourself driving passengers in your vehicle and are accident-prone, then your coverage limits should be higher for proper protection.
How Much Personal Injury Protection Do I Need in Texas?
While MedPay covers medical bills, personal injury protection (PIP) offers broader benefits, including lost wages and funeral costs.
PIP coverage limits may need to be elevated for drivers who can’t afford large financial responsibilities after an accident, live in affluent areas with high-income earners, or both.
Need Auto Insurance? Compare Coverage Recommendations in Texas
In many ways, enrolling in auto insurance is far from a straightforward process. Fortunately, our team is here to simplify your coverage and keep you protected for less.
Everyone has different needs, and through our partnerships with top-rated auto insurance companies in Texas, we help you assess your risks, compare coverages and discounts, and build a personalized policy that meets your budget.
Get a free, no-obligation quote using our tool below, or call us at the number above for recommended auto insurance coverage that fits your coverage and budget needs.
