Texas Liability Insurance: What It Covers - NerdWallet (2023)

ALSO NOTE:cheap car insurance not texas||Best Auto Insurance in Texas||The best home insurance in Texas||Best Affordable Renters Insurance in Texas

Texas liability insurance protects your finances when uncertainty hits the road. Suppose you are driving on Interstate 30 and a slow train is in front of you. You want to change lanes, but you can't see the truck next to you. They crash into the truck and slam it against the rail. Everyone is fine, but the other driver's truck is damaged.

Without insurance, you would be responsible for paying the other driver for a replacement truck. But you have sufficient liability insurance to foot the bill for you.

Third party insurance is required to drive legally in Texas and will pay for injuries and damages you cause if found guilty after an accident. But not everything is paid for.

Read to learn:

  • What Texas Liability Insurance Covers (and What It Doesn't Cover).

  • The minimum liability insurance required in Texas.

  • The average cost of the minimum auto insurance required in Texas.

  • The consequences of driving without liability insurance in Texas.

What Does Texas Liability Insurance Cover?

When purchasing liability insurance in Texas (or anywhere else) you will find that it has two parts:

  • liability for personal injury. This pays the cost of others for things like medical bills, lost wages, pain and suffering, and funeral expenses if they are injured in a car accident that you cause. It can also cover your own legal or court costs if you are sued after an accident.

  • liability for property damage. This pays the cost of a third party to repair items that have been damaged in a car accident that you caused, such as B. someone else's car or fence. You can even pay for someone else's property destroyed in a car accident or a rental car for the other driver.

" FORWARD: Motor vehicle liability insurance: what it covers and how it works

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What Does Texas Liability Insurance Not Cover?

Here are some examples of what Texas auto liability insurance doesn't offer. pay:

  • Your own medical bills, pain and suffering, or lost wages.

  • Medical expenses for family members injured in an accident caused by you.

  • Cost of repairing or replacing your car or truck.

  • Towing service for your vehicle.

  • A rental car while yours is in the workshop.

Texas Liability Insurance Requirements

In Texas, drivers must have a minimum amount of liability insurance to legally drive. These minimum requirements are expressed as “thresholds” and are broken down into three parts:

  • Personal injury limit per person ($30,000).This is the maximum your insurer will pay for injuries to a single person following an accident that you cause. You must have at least $30,000 in liability insurance per person in Texas.

  • Maximum personal injury limit per accident ($60,000).This is the maximum your insurance will pay for the combined injuries of all people injured in an accident. (except you and family members). In Texas, you must have a minimum of $60,000 in personal accident insurance.

  • Accidental Property Damage Limit ($25,000).This represents the maximum your insurance company will pay for all the property damage you cause in an accident. You must have a minimum of $25,000 in Texas property damage liability insurance.

Leave a Comment:If you lease your vehicle, your leasing company will likely require you to have liability limits that are higher than Texas minimum requirements, plus collision and collision damage waiver insurance.

🤓Nerd Rat

As a rule, you should take out adequate liability insurancenet worth, which is the value of all your money and investments and things you own minus your debts. While Texas liability insurance minimum limits are all you need to drive legally, medical and repair costs after a serious accident can run into hundreds of thousands of dollars. You must pay out of pocket and are personally responsible for any expenses that exceed the limits of your policy. The people you wronged can sue you for that money and you could lose your home or have your wages withheld.


Should I get more than one liability insurance policy in Texas?

You may be wondering what you can do to protect yourself. and whose family members have to pay for repairs or hospital visits out of their own pockets after an accident. While other drivers are liable for damage they cause to you and your passengers, there are many other situations you could find yourself in.Types of car insuranceInsurance can be helpful.

In the table below, we highlight the common types of coverage that can help you after a claim (regardless of fault):

cover type

What do you pay

without insurancejUnderinsured Driver Protection

Medical and repair costs for you and your passengers after an accident with a driver with no or minimal insurance. In Texas, you must notify your insurance company in writing if you decline this coverage.

collision protection*

Your own car repair costs for traffic accidents, whether you are at fault or not.

full coverage*

Your own car repair costs arising from events beyond your control such as B. weather events, theft or being run over by an animal.

Protection against personal injury

Medical expenses, lost wages, funeral expenses and more for you and your passengers as a result of an accident, regardless of fault. In Texas, you must notify your insurance company in writing if you decline this coverage.

Health insurance

Medical costs for you and your passengers after an accident, regardless of fault.

roadside assistance

A battery replacement or towing service if your vehicle breaks down.

* If you lease or finance your vehicle, your lender will likely require you to purchase collision and collision insurance

How much does liability insurance cost in Texas?

Minimum liability insurance in Texas averages $774 per year. That's higher than the national average of $685.

But the own price can vary, sometimes a lot. That's because insurers in Texas and other states base their rates on a dizzying array of factors, including your age, the vehicle you drive, where you live, yourCredit-Based Insurance Scoreand more.

If you are looking for cheaper plans, read NerdWallet's reviewCheap car insurance without texasFind insurers offering the most competitive rates in the state.

But Car insurance is about more than a minimum price. Other things to consider when choosing an insurance company are customer satisfaction, ease of use, types of coverage offered, and available discounts. Here is NerdWallet's summaryBest auto insurance in texasit's on the coast

What happens if I drive in Texas without liability insurance?

Don't mess with Texas, and that includes Texas law. The penalties for driving without liability insurance in Texas depend on how many times you've been caught. But in general you can expect:

  • Fines up to $1,000.

  • Reservoir

  • Driver's license and vehicle registration confiscated.

  • Higher auto insurance premiums.

    (Video) Best car insurance companies in Texas

Frequently Asked Questions

Is Texas Third Party Auto Insurance Required?

Yes. You must have liability insurance if you drive your own car and live in Texas. You may also have to payFully comprehensive and comprehensive insuranceif you lease or finance your vehicle.

How Much Texas Liability Insurance Do I Need?

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Must have at least 30/60/25 Texas liability insurance. This means you must cover at least $30,000 in personal injury per person, $60,000 in personal injury per accident, and $25,000 in property damage per accident. Your insurer will ensure that you have at least these minimum amounts of coverage when you take out insurance.

Where can I find my Texas Liability Insurance card?

Many insurance companies will send you your insurance card after signing or extending the contract. You can also print your insurance card online or save it digitally on your phone or via your insurance company's app. Have this card ready in case a police officer asks you for proof of insurance, or if you want to register your car or renew your driver's license.


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