Texas Auto Insurance

The state of Texas requires all drivers to have auto insurance, or to show financial responsibility by posting a financial bond to become self-insured.

Minimum Texas auto insurance

All drivers in the state of Texas who have liability insurance must meet the following minimum amounts, though many companies recommend that you purchase more than this limited coverage:

• Bodily Injury and Death: $25,000 to cover one person in any one accident, and $50,000 to cover all injuries
• Property Damages: $25,000 

Like many other states, Texas has a Tort system. This means that in an accident, one of the drivers involved will be found to be at fault for causing the accident. This person will be financially responsible for paying for all of the damages through their Texas auto insurance company. Alternately, if a Texas driver's coverage isn't sufficient enough to pay for the property damages, medical bills, and so forth, they will have to pay out of pocket. For this reason, most insurance companies recommend that drivers buy more than the minimum coverage requirements to protect their finances in case of an unfortunate collision.

It's also worth noting that 1 in every 8 drivers in Texas has no auto insurance coverage, which means that you have a high chance of being involved in an accident with someone who can't cover the costs of the accident.  Uninsured motorist coverage, though not required in Texas, is a great purchase – considering its low cost.

Penalties without Texas auto insurance

If you're caught driving without enough auto insurance coverage, you face a heavy fine. The first time you're found to be driving without insurance, the fine can range between $175 and $350 ; for future offenses, you can be fined up to $1,000. In addition, you can also have your driver's license suspended and your vehicle impounded.

You're not only at risk for being caught if you are pulled over, but any time your insurance policy lapses or is cancelled, the company will inform the Texas Department of Motor Vehicles, and you may face additional penalties. The aforementioned are just a few reasons why Texas auto insurance is a wise purchase.