Texas Auto Insurance
When you live in Texas and own a vehicle, there are things you should know. Assuming you want to save money on insurance premiums, you need to know which insurers offer the least expensive rates. It may help to know the largest insurance companies that provide auto/truck coverage in Texas.
You should be aware of the minimum insurance requirements in Texas. A word of caution: Texas homeowners and those with, at least, moderate income should know the minimum liability coverage may not be sufficient for these people. Only consider choosing minimum coverage requirements when you’re on a very tight budget if you meet the above profile.
Minimum Auto Insurance Coverage in Texas
All Texas drivers must have liability insurance coverage in the following minimums.
- Bodily injury or death must equal $30,000 coverage per person,
- $60,000 bodily injury or death liability insurance per accident, and
- Property damage liability coverage must equal, at least, $25,000 per crash.
If you are determined to be “at fault” for an accident, your liability insurance coverage will help pay the cost of medical treatment expenses and property dåamage for each injured passenger (including the driver of the other vehicle), but does not cover reimbursement for your injuries and/or your vehicle repairs.
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With the high cost of autos currently, the $25,000 property damage coverage could be insufficient to cover the repair costs of the other vehicle involved in the crash. This is an example of the potential insufficiency of Texas minimum coverage limits. If the other auto also has multiple injured passengers, the $30,000 limit per person may not be enough to reimburse the escalating medical costs of treatment.
If your budget allows for higher coverage limits, you would be smart to opt for higher limits, such as $100,000 for bodily injury per person, $300,000 for bodily injury per accident, and $50,000 property damage per accident. Since you are responsible to “go into your own pocket” for costs that exceed your insurance limits, your financial security is at risk when you don’t have sufficient liability coverage.
Additional Insurance Coverage to Analyze and Consider
Evaluate the cost of these additional coverages and the protection they offer when you shop for cheap auto insurance in Texas.
Collision Insurance Coverage:
Since your liability insurance pays for the other vehicle damage, but not yours, this coverage pays you to repair your vehicle, even if it’s a one-car accident you have, such as hitting an electrical pole. If your vehicle is new or fairly new, the cost of repairs may strain or destroy your bank account.
Uninsured or Underinsured Motorist Coverage:
When you are hit by a driver who has no in-force auto insurance or who has not enough coverage to reimburse you for your medical and repair costs, this becomes vital coverage. Your medical bills can quickly rise if you’re injured, particularly if you cannot work at your job, and your income stops. In Texas, there is a mandatory deductible of $250.00 for this coverage.
In the event of animal collisions and/or non-collision losses, such as vehicle theft, auto fire, or vandalism, this protection reimburses you for your out-of-pocket costs. This coverage also comes with a deductible of your choice.
Medical Payments Insurance Coverage:
This insurance (MedPay) helps pay for your medical bills, including your passengers, regardless of which driver is “at fault.” Should the accident involve a fatality, this coverage will help to reimburse funeral costs for the deceased person.
Personal Injury Protection:
Similar to medical payments coverage, personal injury protection (PIP) pays for injuries (or funeral expenses) for you, your family and passengers after an accident, without decisions of “at fault” crashes. This coverage also pays up to 80 percent of the income you may lose because of your injuries, along with the cost of professional caregivers during your recuperation. You also can choose the limits you want within an acceptable range of benefits. If you want the most “complete” insurance you can check out our article on full coverage car insurance.
Insurers Offering the Cheapest Auto Coverage Premiums in Texas
For 2016, these are the least expensive auto insurance rates and the companies that offer them in Texas. These rankings are based on average quotes for good drivers and are the best companies for cheap auto insurance in Texas.
- USAA Insurance
Open to active military, veterans, and their families.
The Gecko and Caveman insurance company.
- State Farm Insurance
- Farmers Insurance
The Highest Texas Car Insurance Rankings for Customer Satisfaction
These car insurance Texas ratings result from J.D. Power customer satisfaction surveys.
- Texas Farm Bureau
- Allstate Insurance
- State Farm Insurance
- Farmers Insurance
- Progressive Insurance
- AAA Insurance
- GEICO Insurance
- Liberty Mutual Insurance
- Nationwide Insurance
USAA Insurance – This company was the highest-rated company in Texas surveys. Remember, this insurer only permits current military, veterans, and their families to be covered.
What Happens When You Add a New Car?
When you buy a new car in Texas, it is covered by your current insurance policy for up to 20 days. Should you have a crash during this period, your insurer will use the same protection limits stated in your present policy to reimburse you.
Be sure to notify your insurer of new cars before the 20 days run out, as you’ll have no coverage past this period. After you notify your insurance company you bought a new car, you can select the coverage you want for the additional vehicle. If you trade-in your former auto, advise your insurer that you no longer own this vehicle, so the company can replace the insured auto.
When You Travel from Texas to Mexico in Your Insured Vehicle
Since you are in a different country, your Texas car insurance will not travel with you. To be sure you have coverage while driving in Mexico, select one of the following options.
Request a policy change (endorsement).
Purchase Mexican liability coverage.
Buy Mexican liability insurance with a “tourist” endorsement that extends your Mexican coverage limits.
If you’re in the military, a veteran, or have a military family member, you should consider USAA for car insurance in Texas.
There are other good options to evaluate – and you should do so. You will find the least inexpensive rates matched to outstanding claims-processing service.