Congratulations on getting that new car or gifting a recent graduate with their first vehicle. But before you even think about getting behind the steering wheel, know the facts about obtaining the minimum amount of liability auto insurance required by the state of Texas in order to drive legally. Failure to have valid insurance in place causes untold financial harm and headaches when an accident occurs and there are repair damages and medical injuries but neither driver can prove financial responsibility. Here are some answers to the most frequently asked questions about Texas auto insurance:
How Much Will Texas Auto Insurance Cost Me?
The rates you pay for insurance are determined by a number of factors, including where you live, the kind of car you drive and your past driving record. Recent statistics indicate that on average, Texas drivers spend $1,022 annually to obtain car insurance. Texas ranks 5th among the most expensive states in which to purchase comprehensive automobile insurance coverage but ranks 20th for the amount its drivers pay to obtain minimum levels of liability insurance.
Why Must I Buy Car Insurance?
The Texas State Department of Insurance requires that all drivers in Texas demonstrate what’s called financial responsibility, meaning that they show proof that they can pay for any damages they cause as a result of a car accident. The easiest way to acquire this proof is to purchase auto liability insurance coverage from a reputable company licensed to do business in Texas in amounts that at least meet the minimum requirements of 30/60/25 set by state law.
What’s the Minimum Amount of Insurance I Must Purchase?
Texas has a 30/60/25 formula which means that their minimum amount of coverage required to handle damages during a traffic accident include $30,000 for every person involved, $60,000 total for all people involved, and $25,000 in coverage to handle property damage that results from a traffic accident.
How Can I Obtain Texas Auto Insurance?
There are a number of reliable and reputable insurance vendors authorized to sell insurance policies to drivers in Texas, all of which have an online presence making it easy to obtain free, no-obligation price quotes. Comparison shopping is one of the best ways to compare the features and rates offered by one company with another in order to select the auto insurance policy which best meets the needs and financial resources of every driver.
How Can I Get the Best Auto Insurance Rates?
Most major insurance carriers in Texas offer a variety of discounts to drivers who qualify to help them reduce their annual insurance premium rates. Among the categories for receiving a discount between 10 percent and 50 percent are safe driving records, good student grades, having anti-theft devices on your vehicle, insuring multiple automobiles with the same carrier, having more than one type of insurance policy with a carrier, being a student away at school, completing a safe driving education course and for driving an alternative fuel vehicle. Carrying a larger deductible, the amount you pay out of your own pocket, can also help further decrease your insurance rates.
What’s the Penalty in Texas for Failing to Have Insurance?
Fines for first convictions for failing to have minimum liability coverage on your registered automobile range between $175 and $350. A subsequent conviction could cost a driver a $1,000 fee, having their vehicle impounded and their driver’s license suspended. Officials in the state often warn drivers that “if you’re not covered, you’ll be discovered” because Texas uses the TexasSure verification system that alerts law enforcement and county tax officials if a vehicle has dropped its insurance policy recently or the driver has never purchased a policy with the required amount of liability insurance coverage.