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Texas Liability Auto Insurance: What You Need to Know

Texas liability auto insurance

In Texas, the state requires minimum liability insurance coverage. However, it is estimated that as much as 20 percent of the drivers on the road there are not covered in any way. In addition to those drivers who do not have auto insurance, there are a number of others who do not have their license or their insurance. The minimum coverage amounts include:

Texas liability auto insurance

  • $25,000 towards a single person in an accident (bodily injury)
  • $50,000 in an accident (for more than one person)
  • $25,000 coverage per accident (for property damage)

There are no maximums for how much you can have- if you can afford more than the liability basics, it is well worth the cost to cover your vehicle. The average cost of car insurance in Texas is $808 per year.

If you would prefer not to use an insurance policy to meet the state’s legal requirement, there are other options that you can use instead. Those options include:

  • File a surety bond with the county clerk. However, that bond must include two people and both of those people must own real estate property in the state of Texas.
  • Put down $55,000 in securities or cash to the comptroller (of the county).
  • Put down $55,000 as cashier’s check or in cash to the county judge.

You can also certify with the Texas Department of Motor Vehicles to prove that you are a self insured provider. This is restricted to only people who have twenty five or more cars.

What if You Don’t Have Texas Liability Auto Insurance?

Texas participates in the TexasSure program, which electronically verifies that all licensed drivers have valid liability (or more) insurance. If there is a question about your coverage, your license and/or registration can be suspended. For a second suspension, the car can be impounded for as long as 180 days.

During the time that your car is impounded, the impound lot will charge $15 each day for a potential total cost of $2,700. In addition to this expense, you will have to prove that you have valid auto insurance before the car will be released. In most cases, you might be required to buy the more expensive type of insurance called a SR-22.  You may be required to carry this insurance for several years consecutively.

Reasons That You Might Consider Texas Liability Insurance More Important

There are more than 40,000 accidents in the state of Texas every year.  The leading causes of those accidents can vary, but the top of the list includes:

  • Speeding. Despite strict laws and stiff penalties, speeding drivers in the state of Texas are the number one cause of accidents.
  • Driver inattention. Drivers who are talking on their phones, texting, eating or doing any number of other things are also a leading cause of accidents in the state.
  • Failure to stay in one lane. Swerving, merging incorrectly and more also cause accidents.
  • Failure to yield while turning left is also a major cause of accidents.

Buying Texas Liability Insurance: All of Your Options

There are a number of ways that you can buy the required insurance if you do not want to use any of the other types of alternatives. These include:

  • Buying insurance from a licensed agent in person
  • Buying from the agent’s website
  • Buying from a discount insurance site online

Keep in mind that you should get at least two quotes to comparison shop, looking at prices and coverage amounts before you make your choice. Not all companies write the same coverage types. Not all companies offer the same kind of discounts, which can also dramatically change your insurance costs. Your agent will tell you about discounts, but you should be aware of the others that you might be eligible for. It never hurts to ask about certain discounts that you have heard of in the past. The worst they can do is say no.

Potential Liability Insurance Discounts

Some of the discounts that you might be able to get from your agent or other sources include:

  • Multiple policy (home, health, life and more)
  • Good driver insurance
  • Having certain cars or certain safety equipment
  • Certain types of occupations may qualify for discounts
  • Paying in full, paying online or having your payment automatically withdrawn from your bank account may also give you a discount