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Texas State Minimum Car Insurance

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CoverageMinimum AmountCompany12-Month Policy Rate
Bodily Injury Liability $30,000Bristol West$564
Property Damage Liability$25,000Mercury$684
Personal Injury Protection (PIP)$2,500Dairyland$732
Uninsured Motorist Bodily Injury$30,000Quantum$756
Uninsured Motorist Property Damage$25,000SafeAuto$792

Did you know that in the United States there are minimum insurance requirements? When it comes to auto or car insurance, each state sets its own insurance minimums. Read on to learn about the type of car insurance you are required to have in Texas.

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Best Texas State Minimum Car Insurance:

State Minimum Rates in Texas

If you live in Texas, you are required to carry a current car insurance policy. You may be wondering how much it’s going to cost you. Your auto insurance rate will depend on a number of factors, including the type of vehicle you drive, your driving record and your age. To find out what each insurance company would charge for your auto insurance policy, you should get a quote from them. Here are some of the average rates for an annual policy. 

Company12-Month Policy Rate
Bristol West$564
Mercury$684
Dairyland$732
Quantum$756
SafeAuto$792

*Quotes were obtained using the following profile: 40-year-old female, 2015 Ford Taurus, excellent driving record. For an accurate quote based on your metrics get a custom quote here.

Texas State Minimum Car Insurance Requirements

The minimum requirements for Texas car insurance specifies having a policy that includes specific types of coverage. 

  • Bodily injury per person per accident: In Texas, you are required to have at least $30,000 of coverage for bodily injury per person per accident. The bodily injury per person per accident coverage means that you can receive coverage for up to $30,000 for 1 person’s medical bills. 
  • Bodily injury for all persons per accident: Texas law also requires you to have $60,000 worth of bodily injury coverage per accident. This limit is the most your insurance company will pay for medical expenses caused by the accident, no matter how many people were injured. 
  • Property damage liability: You will need to carry a policy with a minimum coverage of $25,000 for property damage. Property damage liability coverage is what you will use if you cause damage to another person’s property. If you cause a collision with another car, this coverage can be used to pay for the repairs to the other person’s car. You can also use this coverage if you hit another type of property with your car, such as a mailbox. 
  • PIP (personal injury protection): You will need to carry a minimum of $2,500 in PIP coverage. This coverage can be used to pay for the medical bills for yourself and your passengers if you are injured in a car accident. It can also offer coverage for nonmedical costs, such as lost wages due to your injury. 

Texas Driving Laws

There are a number of driving laws in Texas designed to increase public safety. Some of the driving laws in Texas are:

Auto insurance: Every driver needs to have an auto insurance policy with basic liability coverage. If you don’t have auto insurance, you may be fined up to $350 for your 1st offense. If you’ve received a ticket for not having insurance in the past, you could be fined more.

Cell phones: 

  • Drivers who have a learner’s permit are not allowed to use cell phones within the first 6 months of driving.
  • Drivers who are younger than 18 are not allowed to use any wireless communications devices.
  • School bus drivers are not allowed to use cell phones while driving if there are children on board.
  • You cannot use handheld devices while driving in school zones.
  • You cannot send or receive text messages if you are driving.
  • Some areas of Texas may have additional local laws.

Impaired driving: You cannot operate a vehicle in a public place while you are intoxicated.

Speed limits: You must adhere to the speed limits that are posted on the road you are driving on.

Car Insurance Premiums in Texas

You’ve probably heard of something called underwriting during your research about insurance policies. Underwriting is a process that insurance companies use to determine whether it will sell you a policy and how much it will charge you for your policy. Here are some of the factors an insurance company will consider when determining your premium:

Your age: Auto insurance premiums are usually higher for drivers under 25 and over 70. This is because insurance companies consider these age brackets as being higher-risk drivers.

Your credit score: Some companies may also use your credit score when determining your premium. Insurance companies may take a look at this to see if you are a reliable customer who will keep up with your premium payments. 

Your driving record: Obviously, one of the highest risks for an insurance company will be if you have a poor driving record. If you’ve gotten tickets or had accidents in the past, you can expect a higher premium on your auto insurance. If an insurance company doesn’t feel comfortable with your driving record, it may not sell you a policy at all.

The type of car you drive: The type of vehicle you drive is important. If your car is damaged, a large part of the cost to repair it depends on how much the parts are. Some parts are more expensive than others. An insurance company may charge you a higher premium if your car requires costly parts. You can also expect higher rates for luxury, sport and high-performance vehicles.

What your car is used for: When you get a quote, you will probably be asked what you use your car for and how many miles you drive on average. The more you’re on the road, the more risk there is of an accident. Insurance companies use this information to determine risk and your rates.

Where you live: Insurance companies also factor where you live in your auto insurance policy. For example, Houston car insurance may cost more than Amarillo car insurance. Insurance companies consider the risk of theft and accidents higher in highly-populated areas. Premiums may also vary within the same city depending on where in the city you live.

Best Car Insurance in Texas for State Minimum Coverage

Which insurance companies can offer you the best car insurance in Texas? Remember, you’ll want to get a quote from auto insurance companies to see the most accurate rates for your situation.

1. Best Overall in Texas: SafeAuto

SafeAuto offers auto insurance policies for a number of needs, making it a great company to get a quote from no matter your situation. It offers the basic minimum coverage as required in Texas, as well as policies that are designed for high-risk drivers. You can receive discounts on your auto insurance policy from SafeAuto if you switch to the insurance company from a different insurance company.

You can also receive discounts for having more than 1 vehicle, owning a home and even for being a good student. As a SafeAuto customer, you will have access to benefits such as an online account and mobile app to manage your policy and 24/7 claims assistance.

Pros
  • Backed by Farmers Insurance Group
  • Mobile app can help you make payments and view policy details
Cons
  • Doesn’t provide much information about its policies on the website
  • Doesn’t offer the option to purchase a policy online

2. Cheapest in Texas: Bristol West

If you can get the job done without spending a lot of money, that’s what you’ll want to do, right? If you’re looking for cheap car insurance, Bristol West is worth looking into. One of the great things about Bristol West is that it offers auto insurance drivers to higher-risk drivers.

Some auto insurance companies that insure higher-risk drivers offer bare minimum policies and benefits. With Bristol West, you can expect to receive access to benefits including discounts for bundling multiple policies and scheduling your premium payments ahead of time. 

Pros
  • Cyber coverage for protection against online attacks and other additional homeowner coverage available
  • Rideshare insurance available
  • Offers competitive rates
  • Mechanical breakdown protection
Cons
  • Limited options to customize policies
  • Low homeowners insurance customer satisfaction
  • Policies must be purchased through an agent
  • Only available in 11 states
  • Low auto insurance claims satisfaction ratings

3. Best for Mechanical Protection: Mercury

Generally speaking, Mercury offers pretty basic auto insurance coverage at affordable rates. On the surface, it’s a company that may not seem so special and may be often overlooked. Mercury offers mechanical protection as an optional add-on coverage to its auto insurance policies, setting it apart from competitors. Mechanical protection coverage basically acts as an extended warranty for your car.

If your car has a serious issue such as a bad transmission, you can use this coverage to help cover the cost of getting a new transmission. You can choose from several mechanical protection coverage levels and there are no limits on the number of claims you can make. 

4. Best for Covering High-Risk Drivers: Dairyland

While Dairyland isn’t the cheapest option for Texas car insurance, it offers other benefits. If you’re a high-risk driver, you may have a difficult time finding an insurance company that will sell you a policy. High-risk drivers may be ones that have a history of traffic accidents, DUIs and other driving violations.

Dairyland offers auto and motorcycle insurance to high-risk drivers. You can choose from flexible payment options to make your premium payments fit your budget. You can also receive a policy even if you’ve never had auto insurance before.

5. Best for Coverage for Traveling to Mexico: Quantum 

If you live in Texas, you may be wondering if your auto insurance will cover you if you take a trip across the border. Your American-based car insurance policy will be void as soon as you cross the border. In Mexico, you will need to be covered by a Mexico auto insurance policy.

Mexican law requires its own minimum coverage, including liability insurance and roadside assistance. Quantum can offer access to unique auto insurance policies that can meet your needs, whether you need a standard policy or one that will cover trips to Mexico.

Which Insurance is Right for Me?

Not sure what type of auto insurance you need? Don’t worry, you can rely on the quote process to help you out. Getting a quote is a quick, easy and free way to see what your auto insurance options are and how much it will cost.

Frequently Asked Questions

Q: How do I ensure that I’m properly covered?

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Q: How do I ensure that I’m properly covered?
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The best thing you can do is talk to your insurance carrier or agent and be honest about your car and driving history. If you have made any modifications to your vehicle, let your insurance company know so that you will be covered in the event of a loss. It’s a good idea to maintain more than the state minimum coverage — you want to replace your car for the full value if you have to.

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Q: How much is my car insured for?

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Q: How much is my car insured for?
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With a standard auto insurance policy, your vehicle is insured using actual cash value, which means that a deduction may be taken for depreciation based on age or usage. As your vehicle ages, it’s worth less money which reduces the insurable value. If you own a collectible or classic car, you’ll want to consider a specialized classic car insurance policy that insures your vehicle to its full value without a deduction for depreciation.

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Q: What is usage-based auto insurance?

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Q: What is usage-based auto insurance?
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Usage-based insurance covers a broad range of situations ranging from devices that monitor driving habits and offer a discount based on safe driving to streamlined policies that provide coverage based on actual use. The former is still more common and many insurers now offer a smart device or mobile app that monitors speed, hard braking events, sudden swerves, miles driven, and the time of day you drive. By demonstrating safe driving habits, you can often earn a sizeable discount.

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