Best Car Insurance in Texas: Everything You Need to Know (2024)

All drivers in the state of Texas are required by law to have car insurance and personal injury protection coverage that covers any injuries that they and their passengers may have in case of an accident. Given the fact that the same insurance policy can vary in price from $44 to $153 per month, searching for the best car insurance in Texas involves researching the best deals for your particular situation.

What Determines Car Insurance Rates?

Many factors influence auto insurance costs, including different state guidelines. An insurance cost estimate is typically an average, and your exact cost greatly depends on a variety of things, according to The Zebra. All of the following variables can affect your rate:

• Your age and the age of other people in your family that may drive the car
• Your driving record up to that point
• Your personal credit score
• Your exact location within the state
• Your car's characteristics, such as its mileage and whether it's used for personal or commercial purposes

Rates also depend on the chosen level of insurance coverage. The minimum rates required by the Texas Department of Insurance for 2021 are as follows:

• At least $30,000 per injured person in case of an accident
• A maximum of $60,000 per accident
• Property damage costs of $25,500 per accident

A policy with the exact coverage requires by Texas law is known as 30/60/25 coverage.

Liability Insurance Policy Limits and Optional Coverages

Standard liability insurance helps you in case of an accident by paying for injuries and property damage that you may have caused, up to the limits set in your policy. However, it doesn't help you pay for treating any of your potential injuries or car damage. Although you are free to choose a policy that only covers the state minimums, you should be aware that those figures may not be enough to cover the repair and medical care costs of an accident. NerdWallet mentions that liability insurance that covers up to 10 times the state's minimum is highly recommended.

Drivers may also opt for additional optional coverage, such as:

• Personal injury protection
• Additional medical coverage
• Uninsured/underinsured motorist and motorist property damage
• Comprehensive coverage
• Collision coverage
• Roadside assistance and towing coverage
• Rental car reimbursem*nt

If you financed a loan for your car, you may find that comprehensive and collision coverage are mandatory for the duration of the loan.

Consequences and Alternatives for Those without Car Insurance

There are severe penalties for not having car insurance in the state of Texas. If you don't have a valid insurance policy, you can expect the following:

• A $175 to $350 fine for your first offense.
• A $350 to $1,000 fine plus your car being impounded and your driver's license suspended for two years if you are a repeat offender.
• A fine of up to $2,000 and/or 180 days of jail time for driving without a valid license.

MoneyGeek reports that Texas motorists can access an automated database called TexasSure, where they can check and see if they have valid insurance. Those who, for whatever reason, do not have liability insurance can still drive their cars under Texas law if they provide proof that they are financially sound enough to pay for any eventual damages. The Texas Transportation Code states that there are four ways to do that:

• By filing a surety bond with at least two other people who own property in Texas, as long as the property included in the bond is worth at least the state's minimum insurance requirements.
• By depositing $55,000 in cash or securities with the Texas comptroller.
• By depositing $55,000 in the form of cash or a cashier's check to the county judge where your car is registered to.
• By earning a certificate of self-insurance from the Department of Public Safety. This can be done if you own more than 25 vehicles and you commit yourself to reimburse a third party for any damages caused by an accident with one of your cars, up to at least the minimum state liability requirements.

How to Choose the Right Car Insurance

ValuePenguin says that although most car insurance companies choose to promote their low premiums, sometimes choosing the cheapest deal isn't the best solution. Ideally, you should do some research and find policies that adequately cover your car in case of a crash and find the best value instead of the cheapest deals.

Some of the factors that most influence your insurance rates are:

• Your age: Your age is a major factor in determining your insurance costs. Insurance costs are highest for drivers in their teens and 20s but gradually become more affordable as the driver gains road experience. Despite this, proper research may help you discover affordable rates for drivers in their 20s. Older drivers also tend to pay more, typically starting at the age of 65, but researching the market may help you find good deals if you are in that age group.
• Being in a military family: If you or any close family member are currently or formerly in the military, according to Bankrate, you may be eligible for a relatively inexpensive insurance rate from the United Services Automobile Association (USAA).
• Having a speeding or distracted driving ticked on your record: Such a ticket may significantly affect your insurance rate, although actually causing an accident will typically cause a more dramatic rise in insurance costs. A speeding ticket or a similar offense is likely to increase your insurance rate by 7 percent.
• Having a DUI on your record: Driving under the influence in Texas can lead to spending up to six months in jail, losing your license for up to a year, and paying fees up to $2,000. Doing so repeatedly will attract even harsher penalties. Besides these consequences, this behavior can cause your insurance costs to rise by as much as 72 percent.
• Having bad credit: Your rate may also be affected by your perceived credit, as low-credit drivers may be perceived as more prone to causing accidents than those with good or great credit.

Having the right car insurance can help you in difficult situations and give you peace of mind. Before committing to an insurance policy in Texas, it's best to do some research and understand all the options available.

Sources used:

https://www.valuepenguin.com/car-insurance-rates-texas-study

https://www.bankrate.com/insurance/car/texas/

https://www.moneygeek.com/insurance/auto/cheapest-car-insurance-texas/

https://www.nerdwallet.com/blog/insurance/cheapest-car-insurance-in-texas-tx/

https://www.thezebra.com/auto-insurance/texas-car-insurance/