Auto Insurance in Texas: What You Need to Know Before You Buy

Texans truly love to hit the wide open spaces in their favorite truck and other trusted vehicles with the Texas Department of Transportation maintaining more than 79,000 miles of farm-to-market, ranch-to-market, U.S., and interstate highways.

That’s more roadway than any other state and by some estimates approximately 700,000 total lane miles – almost double California's next highest state.

Of course, all those roads come with a whole lot of drivers as Texas has more than 18 million licensed drivers: that’s more drivers than Wyoming, Vermont, Alaska, North Dakota, South Dakota, Rhode Island, Delaware, Montana, Hawaii, Maine, West Virginia, New Hampshire, Idaho, Nebraska, New Mexico, Mississippi, and Kansas combined!

Nearly 20,000 Texans Suffer Death or Serious Injuries Yearly in Vehicle Crashes

Auto insurance in Texas is a serious topic as all those drivers and roadways come with the grim reality that there were 4,481 deaths on Texas roads in 2022 (up from 3,060 in 2010) with 15,299 serious injury crashes that caused 18,880 people to suffer serious injuries.

There were no deathless days on Texas roadways in 2022 – a statistic backed by these sobering facts from the Texas Motor Vehicle Traffic Crash Facts Calendar Year 2022:

• 1 person was killed on Texas roadways every 1 hour 57 minutes.
• 1 person was injured in Texas vehicle crashes every 2 minutes 9 seconds.
• 1 reportable crash occurred in Texas every 57 seconds.

The pain and suffering caused by these vehicle crashes resulted in an estimated $55.9 billion in economic losses, up from $22.3 billion in 2010.

“Driver behavior is one of the causes, but also one of the most important solutions,” Transportation Commissioner Laura Ryan said. “This is not (to) blame. These are facts. We all have a role. TxDOT can do more, and we accept that responsibility. The driving public can do more. For instance, in 2021, a total of 1,522 people were killed because of speed, and a total of 1,219 people were killed because they were not wearing a seat belt. These were decisions made by people that could have potentially saved 2,741 lives.”

Another factor completely in the driver’s hands is the type of auto insurance they have for their vehicles and family.

Auto Insurance: Protect Your Family and Your Assets

Even if Texas law did not require all drivers to carry auto liability insurance, it’s an important tool to protect you, your family, and your assets.

Auto insurance can:

• Financial Protection: Even minor accidents can result in significant costs for property damage and medical bills. Liability insurance covers these expenses for the other party if you are at fault, preventing you from facing financial ruin.
  
  
• Protect Your Passengers: Auto insurance can help protect you, your loved ones, and any passengers in your vehicle.
  
  
• Peace of Mind: Knowing you have liability coverage provides peace of mind while driving. You can focus on the road without worrying about the potential financial consequences of an accident.
  
  
• Legal Defense: If you are sued after an accident, liability insurance can cover your legal fees, saving you from the high cost of hiring an attorney.
  
  
• Compliance with Rental Car Requirements: Most rental car companies require you to have liability insurance to rent a vehicle.
  
  
• Compliance with Lenders and Leasing Agents: Most auto loan lenders or leasing agents require auto insurance.
  
  
• Potential Discounts: Some employers and organizations offer discounts on car insurance or other benefits to employees who maintain liability coverage.
  
  
• Protecting Assets: Without liability insurance, a lawsuit arising from an accident could lead to the seizure of your assets, such as your home or savings, to cover the damages.
  
  

30/60/25 Coverage and Other Texas Auto Insurance Specifics

Two important aspects of buying auto insurance in Texas are that you are responsible for accidents you cause in the state, and state law requires a minimum level of liability coverage called 30/60/25.

“State law requires people who drive in Texas to pay for accidents they cause. Most people do this with liability insurance,” explains the Texas Department of Insurance (TDI). “Most people do this with liability insurance. A liability policy pays to repair or replace the other driver's car and pays other people's medical expenses if you’re at fault in an accident.”

The 30/60/25 law in Texas requires drivers to have at least the following coverage:

• $30,000 in liability coverage for each injured person.
• $60,000 in total liability coverage for all injured persons per accident.
• $25,000 for property damage per accident.

In reality, injuries and property damage costs can run much higher in accidents, so opting for only the minimum coverage may not be prudent.

“Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the costs if you're at fault in an accident. Other drivers could sue you to collect the difference. Consider buying more than the minimum limits to protect yourself,” advises TDI.

More Tips from TDI on Buying Auto Insurance in Texas

TDI offers these other helpful tips to Texas drivers before they buy auto insurance:

• Decide what kinds of other coverage you need.
  • Liability insurance doesn't pay to repair or replace your car or to treat your injuries. Other types of coverage to consider include:
    • Collision – pays for damage to your car.
      
      
    • Comprehensive – pays for damage from fire, hail, vandalism, or theft.
      
      
    • Uninsured or Underinsured Motorist – pays for auto damage, medical treatment, lost wages, pain and suffering, and other expenses if the driver who caused the accident didn’t have enough insurance or didn’t stop.
      
      
    • Medical Payments – pays medical bills resulting from an accident.
      
      
    • Personal Injury Protection – pays for medical bills, plus 80 percent of lost income and the cost of a caregiver for an injured person.

• Do not be afraid to get price quotes from several companies, an independent insurance agent such as Dean & Draper can help drivers with this and ask about an insurance company’s complaint record. Check out TDI insurance complaint resources here. You can also verify that an insurance company’s license is current by calling the TDI Help Line at 800-252-3439.
• Decide on a deductible: A deductible is the amount you must pay before the insurance company will pay. For example, if you have a claim for $2,200 and a deductible of $500, the insurance company will deduct $500 and pay you $1,700. The higher your deductibles, the lower your premium.
• Ask about discounts: Most companies offer discounts if you reduce the chances of a loss. Common discounts include taking defensive driving or driver’s education courses, maintaining a good driving record, having more than one car on a policy, and having other policies with the same company such as a homeowners policy.
• Avoid gaps in coverage: Never cancel a policy until you get your new policy or a written statement that proves you have coverage. TDI says to keep shopping if a company turns you down. If you have trouble finding insurance, ask an insurance agent about getting coverage through the Texas Automobile Insurance Plan Association.

Contact Dean & Draper today for help in getting a customized Texas auto insurance policy that best protects you, your family, and your prized assets.

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