MINIMUM TEXAS CAR INSURANCE COVERAGE
Texas requires drivers to carry at minimum the following auto insurance coverages:
- Bodily Injury Liability: $30,000 per person and $60,000 per accident
- Property Damage Liability: $25,000
- Personal Injury Protection (PIP): $2,500 unless you reject this coverage
- Uninsured Motorist Bodily Injury: $30,000 per person and $60,000 per accident unless you reject this coverage
- Uninsured Motorist Property Damage: $25,000 and a $250 deductible unless your reject this coverage
While these are the minimum coverages Texas requires you to have, everyone’s insurance needs are different.
1. Towing and labor coverage pays to tow your car if it can’t be driven. It also pays for labor to change a flat tire or jump-start your battery.
2. Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services.
Bundling, Telematics (usage based driving), College Degree, Memberships (see if yours qualifies):
Most policies cover you, your family, and people driving your car with your permission. Ask your agent or read your policy to know who your policy covers and if anyone is excluded from coverage.
What does my policy cover?
Coverages vary by policy and depend on the types of coverages you choose. This table shows some of the things most policies do and don’t cover. Read your policy or talk to your agent to be sure of your exact coverages.
|Most Policies Cover
|Most Policies Don’t Cover
|Damage to your car because of fire, hail, theft, flood, flying gravel, or hitting an animal (if you have comprehensive coverage)
|Accidents that happen while you’re driving for a ride-hailing service or delivering food or other items for a fee
|Accidents that happen while you or someone covered by your policy is driving a rental car
|Accidents that happen while you’re driving a car that doesn’t belong to you but you could use regularly, like a company-owned car
|Accidents that happen while you’re driving in other states and Canada
|Equipment not permanently installed in/on your car
|Your attorney’s fees if you’re sued because of an accident
|Accidents that happen while you’re driving in Mexico, driving for business, or racing
|Car repair, lost wages, and medical and funeral bills to other driver and passengers if you cause an accident.
|Damages you caused intentionally
WHAT HAPPENS IF I BUY A NEW CAR? IS IT COVERED?
Yes, but within certain limits:
If you get a new car, your current insurance will automatically cover it for about 20 days. The type of coverage depends on whether the car is an additional or replacement car.
- An additional car gets the same coverage as the car with the most coverage on your policy.
- A replacement car gets the same coverage as the car it replaces on your policy.
Tell your company about a new car as soon as you can to avoid a lapse in coverage.
AM I COVERED IF I’M DRIVING SOMEONE ELSE’S CAR?
Yes, and no. Check with your agent to be certain.
Rental agencies offer damage waivers and liability policies. The damage waiver isn’t insurance. It’s an agreement that the rental agency won’t charge you for damage to a car you rent.
You probably don’t need the rental agency’s liability policy. Your own auto policy will usually cover you while you’re driving a rental car for personal use. It probably won’t cover you if you’re driving the rental car for work, however.
Before you rent a car, ask your agent whether you need the rental agency’s liability policy and damage waiver.
If you cause an accident while driving a borrowed car, the car owner’s insurance pays claims. If the owner doesn’t have insurance, or doesn’t have enough to pay for the damages and injuries you caused, your insurance will pay.
If you don’t own a car, but borrow a car often, you can buy a non-owner liability policy that pays for damages and injuries you cause to other people while driving a borrowed car. It doesn’t pay for your injuries or damage to the car you’re driving.
If you borrow a car from a repair shop, your liability insurance will pay for damages to the car. It will also pay for other people’s injuries and damages if you’re at fault in an accident. Check your liability limits to make sure they’re enough to pay for the damages.