Texas Car Insurance Requirements

Texas state law requires all motor vehicle drivers to carry auto liability insurance in the form of Bodily Injury Coverage and Property Damage Coverage. As well, if the vehicle is still under lien, the lender will require that the policy holder also carry Collision and Comprehensive Coverage.

In Texas the required minimum coverage for Bodily Injury Liability Coverage is:

o $20,000 per person injured in any one accident

o $40,000 for all persons injured in any one accident

The required minimum coverage for Property Damage is $15,000 for injury to or destruction of the property of others in any one accident.

Optional insurance may include:

Uninsured/Underinsured Motorist (UM/UIM) Coverage: Bodily Injury UM/UIM will pay lost wages; medical bills; pain and suffering; disfigurement; and permanent or partial disability. There is no deductible. Property Damage UM/UIM will pay for damaged items in the accident vehicle, repairs and rental cars, however there is a $250 deductible. UM/UIM coverage must be offered by insurance companies. If the policy holder chooses not to purchase this coverage, he/she must put the rejection in writing.

Collision Coverage: Will pay for repair or replacement of the vehicle regardless of fault, however payment is limited to the cash value of the vehicle minus the deductible.

Comprehensive Coverage: Will pay for damage to the vehicle caused by other incidents besides collision, i.e., vandalism, storm damage, and theft.