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Auto Insurance Basics for Texas Drivers

auto insurance

If you have recently purchased a vehicle, obtained your driver’s license, or moved into Texas, you are required by law to purchase automobile insurance. Like all states, Texas has specific laws and guidelines for drivers. Part of that relates to insurance to ensure that everyone on Texas roadways has protection if an auto accident occurs. In short, Texas auto insurance policies serve as proof that you are financially responsible for your actions while driving. Here are some auto insurance basics for Texas drivers, residents, and visitors.

Texas Insurance Requirements

Texas law requires drivers to obtain a minimum amount of coverage. You can always purchase additional coverage, but you must purchase at least the following:

  • Bodily Injury Coverage Per Person – $30,000
  • Bodily Injury Coverage Per Incident – $60,000
  • Property Damage Coverage Per Incident – $25,000

These figures, or 30/60/25 coverage for short, are the minimum amounts the law requires. However, depending on your individual coverage needs and insurance carrier, these amounts may appear differently on your policy.

Uninsured/Underinsured Motorist

Texas law does not require you to purchase an uninsured/underinsured motorist policy (UM), however, you should know that Texas is considered a tort or “fault” state. A “fault” state means that drivers responsible for causing accidents will be legally liable for financial losses and injuries they cause to others. The benefits of UM coverage are clear. If you are injured in an accident caused by someone who does not have insurance, you will not be left out to dry with no relief options. Instead, your uninsured/underinsured motorist coverage will kick in, allowing you to file a claim with your own insurance provider to get compensation for personal injuries or property damage.

Again, you do not have to purchase UM coverage. However, Texas insurance providers must give you the option. Furthermore, you must decline this form of coverage in writing. There are thousands of drivers on Texas roadways who do not have proper insurance coverage, and their irresponsible (and often illegal) choices put you and your family at risk.

Personal Injury Protection

Personal Injury Protection (PIP) is another type of coverage that offers protection for those on Texas roadways. PIP coverage amounts range, with the minimum standard amount starting at $2,500. You have the option of purchasing additional coverage. PIP coverage is helpful because it covers, not only medical expenses and losses, but also up to 80% of lost income and care giving expenses for someone injured in an accident.

Have Questions? Contact a Texas Personal Injury Attorney

These basic insurance guidelines can be helpful in understanding Texas law and how insurance works after an accident. Unfortunately, thousands of people are hurt each year on Texas roadways due to drivers who do not have insurance. Lack of insurance is just one way that drivers are negligent. Many accidents are simply the result of drivers who behave negligently on the road.

If you have questions about your rights or need help understanding your insurance coverage after an auto accident, contact Daic Law. At Daic Law, we understand how confusing and frustrating managing insurance after an accident can be, and we are here to help! For a free consultation, call us at 877-893-6040, or email us at

Daic Law helps Texan’s manage difficult legal matters involving auto accidents, business disputes, and debt defense in Texas.

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