Question 1

Is car insurance required in Texas?

Accepted Answer

Yes. You need to have car insurance in Texas if you want to drive in this state legally. At the very least, your policy should meet Texas’ minimum insurance requirement, which is 30/60/25 with PIP coverage of $2,500 (unless you waive the PIP component). If you cannot show proof of insurance — or if your policy does not meet the minimum coverage limits — you may be subject to various penalties. These could range from fines to jail time.

Question 2

Do you need car insurance to register a car in Texas?

Accepted Answer

To have your car registered in Texas, you will have to present several documents, with proof of insurance being one of them. Other requirements include the results of VIN verification and a safety inspection. If you previously registered your car in another state, you also have to show out-of-state title and registration.

Question 3

What is “basic” car insurance in Texas?

Accepted Answer

Basic insurance typically refers to the minimum car insurance requirements in Texas. It is a liability-only policy with at least 30/60/25 coverage and PIP coverage of $2,500 (the PIP component may be waived).

Question 4

Does insurance follow the car or driver in Texas?

Accepted Answer

Generally, car insurance in Texas provides coverage to the car, regardless of who is driving it. If you loan your car to someone and cause an accident, your insurance carrier will still cover costs of damages up to your purchased limits.

An exception to this is when you’re renting a car in Texas — insurance may follow the driver if you bought additional coverages that extend to rental vehicles.

Question 5

Can you get car insurance without a license in Texas?

Accepted Answer

Yes, you can purchase car insurance in Texas even if you don’t have a license. It may make finding an insurance carrier more challenging than usual since one of the first things they ask for is your driver’s license number, but it is possible.

Although it may seem illogical, having car insurance in Texas even if you don’t drive may prove beneficial in some situations. One example of this is if someone frequently drives you to and from different locations. Since insurance in Texas generally follows the car, you will still be covered regardless of who is behind the wheel in an accident.

Question 6

Is Texas a no-fault state and what does that mean?

Accepted Answer

Texas is a tort state or an at-fault state. It means that if you get into an accident and are at fault, you will have to shoulder the other driver’s expenses, including medical costs and property damage.

Question 7

Is PIP coverage required in Texas?

Accepted Answer

Personal injury protection is required in Texas unless you explicitly decline it by signing a waiver. Not having this coverage may leave you vulnerable if you’re injured in an accident and can't work. Carriers in Texas are required to offer at least $2,500, but you can increase limits to ensure you have more financial protection on the road.

Question 8

Does Texas require uninsured motorist insurance?

Accepted Answer

Although uninsured motorist insurance is not part of the minimum car insurance requirements in Texas, it’s a good idea to purchase it. Despite car insurance being mandatory in Texas, many drivers still do not carry it. Texas ranks 40th with regards to the number of uninsured drivers, which is approximately 8.3%.

Question 9

Does Texas allow for diminished value compensation after an accident?

Accepted Answer

Diminished value refers to the difference between a car’s market price before and after an accident. Even after being repaired, a car will still have less value than before the accident happened.

In Texas, you can file a diminished value claim if you are involved in an accident. Texas car insurance laws state a diminished value claim must be filed within two years of when the accident occurred. If you were at fault for the accident or the damage was caused by anything other than a collision, then a diminished value claim is not possible.

Question 10

How do car insurance requirements change after a DUI in Texas?

Accepted Answer

Being convicted of driving under the influence in Texas results in the suspension of your driver’s license for at least 90 days. To have it reinstated, you need to file an SR-22, which assures the state that your policy meets the minimum car insurance requirements in Texas. Having an SR-22 classifies you as a high-risk driver and may cause your insurance premium to increase significantly.

Question 11

What is a CARCO inspection and is it required?

Accepted Answer

Some states require a car to undergo a pre-insurance inspection before allowing you to purchase collision and comprehensive insurance. It prevents fraud by providing a record of the car’s physical condition before insurance coverage takes effect. CARCO is the primary company that puts the reports together and sends them to the insurance carrier.

CARCO inspection is not mandatory in Texas. There are only five states that require it — Florida, Massachusetts, New Jersey, New York and Rhode Island.

Texas Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

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What Is the Minimum Car Insurance Requirement in Texas?

What Does This Minimum Coverage Mean?

How Much Does the Minimum Car Insurance Cost in Texas?

Cheapest Minimum Liability Car Insurance in Texas

Cheapest Minimum Car Insurance in Texas

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What Is the Minimum Car Insurance Requirement in Texas While Leasing a Car?

Penalties for Driving Without Car Insurance in Texas

Frequently Asked Questions About Car Insurance in Texas

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