Many Texas residents may be confused as to exactly how much car insurance they must have. Some may believe that full coverage is necessary, no matter what the circumstances, while others are aware that there is a “state minimum,” but they are concerned as to whether or not they qualify for just the “state minimum” or if they need full coverage.
Texas Car Insurance Requirements
The only Texas car insurance requirements necessary for you to meet “state minimum” requirements is what is commonly as “liability only” insurance. Simply put, this means that you take out only enough insurance to pay for repair or replacement of another person’s car if you are at fault. (Texas is not a no-fault state; in most instances, fault will be placed—usually by law enforcement officials—on one of the drivers involved).
Liability Insurance & Medical Expenses
Additionally, liability insurance covers any medical expenses of the other party involved should there be any. Liabilities only insurance does not cover repairs to or replacement of your car, nor does it cover medical expenses if you are injured.
If your car is paid for and is an older model, and if you are not required by your employer to carry full-coverage auto insurance, you can opt for liability-only insurance coverage. The dollar amounts required for bodily injury liability are $25,000/$50,000; for property damage liability it is $25,000.
The first thing you need to do is find out for sure if you are required to have full coverage. If you aren’t, and you want to go with just “state minimum” coverage, compare rate quotes between different insurance companies to find the best price.