Texas Car Insurance Requirements

Texas, like all states in America, has certain car insurance requirements with which all drivers and vehicle owners must comply if they expect to register and legally operate their cars.

All vehicles in Texas must be insured at all times. Self-bonding – handing over the amount of money equivalent to the minimum car insurance requirements – is an option in Texas, but not the most cost efficient option. Therefore, most Texans opt to purchase at least the minimum requirements for car insurance rather than set aside a huge chunk of money to cover the costs of an accident should one occur.

The minimum car insurance requirements in Texas are as follows:

$15,000: to cover damages an accident causes other property

$20,000: to cover any bodily injury or death of one person per accident

$40,000: to cover any bodily injury or death of two or more persons per accident

While many drivers and vehicle owners in Texas choose to purchase the minimum car insurance requirements in Texas, it is always wise to plan ahead, and planning ahead means purchasing more coverage in the event that the minimum car insurance requirements do not cover the entire cost of damages, bodily injuries, and deaths that can result from car accidents.

Of course, if you do not fully own your vehicle – meaning, you financed, borrowed, or have a lien holder – you will be required to purchase comprehensive insurance, which is more than the minimum car insurance requirements and based on various factors. Banks, finance companies, and lien holders feel safer with their investments if they know the vehicle they've helped you purchase is fully covered.

If you fail to purchase and maintain the minimum car insurance requirements in Texas, or comprehensive coverage if required, you will be fined after your first two offenses, and your license will be suspended and your car impounded after your third offense.