Texas Auto Insurance Requirements

Living in Texas, if you have recently bought a new car, obtained your driving license or have moved to Texas you must have clear knowledge with regard to Texas auto insurance requirements. In Texas, you cannot register your automobile with the state until and unless you insure it. As per Texas auto insurance requirements, you are supposed to give proof of your financial responsibility in case of occurrence of accident in which you are involved.

Following are some of the ways through which you can demonstrate your financial responsibility according to Texas auto insurance requirements.

·         Purchase auto insurance policy: -

You can purchase auto insurance policy from an insurance provider whereby you agree to pay a premium in return for the company’s promise to cover for damages that occur in an accident. Just like other states in the US, Texas auto insurance requirements are also specified for residents. There is a minimum level of auto insurance that a person must get. The minimum level of insurance required is as follows: -

1.      Bodily injury coverage up to $30,000 per person

2.      Bodily injury coverage up to $60,000 total per incident

3.      Property damage up to @25,000 per incident.

Apart from this minimum coverage, there are additional insurance options available that you can avail living in Texas. Collision coverage, which pays for damages that occur to your car which occur due to accident with some other car. Comprehensive coverage allows you to insure your car against damages caused by factors like weather conditions. As per uninsured/underinsured drivers coverage, you can insure your car against damage caused by uninsured and underinsured drivers.

·         Purchase a surety bond: -

You have an option of purchasing a surety bond from two residents of Texas who provide assurance that in case you get involved in an accident, these two individuals shall cover the losses thorough selling their real estate. The surety has the same coverage limitation as the minimum liability insurance.

·         State comptroller: -

You can also keep a security deposit with the state comptroller amounting to $55,000 as per Texas auto insurance requirements.

·         County judge: -

Just as keeping a deposit with the state comptroller, you  can keep depositing cash or cashier’s check of $55,000 with the county judge  in which the vehicle is registered.

·         Certificate of self-insurance: -

If you possess a fleet of 25 or more cars you can obtain a certificate of self-insurance for yourself.

As per Texas auto insurance requirements, you must obtain your auto insurance card from your auto insurance provider. This will be used as a proof of insurance in various circumstances. For instance, when a police officer asks you to show proof of your car insurance, when you register or renew registration of your car, when your car is being inspected by ay government officials, when you apply or renew your driving license or when you get involved in an accident.

Like any other state, the Texas auto insurance rate depends a lot on your driving history. If you have a bad previous record you might face difficulty in obtaining insurance. On the other hand, good driving record can help you avail discounts.