Driving is a necessity for a lot of people in the United States. Unfortunately, this comes with a lot of costs associated—registration fees, gas, car repairs, and of course, insurance. To that end, you might be wondering what the minimum car insurance amount is, and thus, saving some money on vehicle ownership.
The first question: is there a minimum insurance amount? In Texas, as well as most states, yes.
Being insured on the road is incredibly important—you’re protected in the event of an accident, and you won’t be required to pay for costly damages and medical bills. This, however, comes with a price tag.
For those who call the Lone Star State home, you’re probably feeling the cost of auto insurance twice as hard. Why is car insurance in Texas so expensive? That comes down to a few reasons:
- State size – Texas is the second largest state in the country. This means that there’s a whole bunch of miles to cover. Larger states have higher insurance premiums because the likelihood of an accident is greater.
- State population – Population is factored into insurance prices similarly to state size. With more people living in a state, there are more drivers on the road. More drivers on the road increase the chances of an accident.
- Average speed limits – Texas has higher speed limits than many other states, hitting 85 on some highways. This increases the risk of accidents and thus raises insurance rates.
- DUI frequency – States with higher rates of drunk driving accidents pay the price by having higher insurance premiums. Unfortunately, Texas experiences the highest number of DUI-related fatalities each year, thus raising the average premium cost.
What is the State Minimum Car Insurance in Texas?
With all these factors that make insurance a little extra pricey in Texas, you’re probably wondering, what’s the most basic package I can buy?
In Texas, drivers are only required to purchase liability insurance. This means you’re covered for any damages made to another person or their car, in the event an accident is your fault.
Texas state minimum car insurance comes down to the 30/60/25 rule. This is a quick way to remember the lowest amount of auto insurance coverage you’re required to purchase for your liability insurance as a Texas Driver. The numbers coincide with these key figures:
- Injuries – For physical injuries that occur during a car accident, Texas requires drivers to purchase a minimum of $30,000 of coverage per person. This auto insurance coverage will pay for any medical bills needed post-accident.
- Total – The total cost of injury coverage must be at least $60,000. This means you’re paying for a driver and a passenger in the event both are injured.
- Property damage – Property damage refers to the repairs needed for the other party’s vehicle. If you cause an accident that damages another driver’s car, your insurance needs to pay for a certain amount of the damage. The minimum coverage needed for property damage is $25,000.
Should You Purchase More Than the Minimum?
If you’re looking for the cheapest car insurance in Texas, the minimum coverage will provide the lowest monthly payments.
That being said, you may want to consider additional coverage for a variety of reasons:
- Deductibles – Minimum insurance plans can harbor large deductibles that many drivers may not be able to afford. This means the insurance company will pay the minimum, but you will also be required to pay out of pocket for some of the damages should an auto accident occur. In the case of large multi-vehicle accidents, these costs can add up quickly. Paying slightly more per month can help drivers avoid this risk.
- Self protection – Liability insurance only covers the other driver in the event you are at fault. This means damages to your car and medical bills for your and your passengers’ injuries are not covered under a liability plan. If you can’t afford to repair or replace your vehicle, or pay costly medical bills following an auto accident, you may want to purchase insurance that covers yourself, as well.
- Added benefits – In Texas, drivers have the option to add towing coverage and rental car insurance to their plan. Depending on the frequency at which you would use these services, these additional plans may be worth looking into.
Compare Car Insurance Quotes Online
Finding the best insurance rate for your situation has never been easier. Online Auto Insurance provides the most affordable rates for your car at the touch of a button.
Between paying for gas, maintaining your vehicle, and the long process of Texas car registration, you deserve some ease when it comes to comparing rates. Leave the hard work to us, and find the insurance rate you can afford today.
TDI. Automobile insurance guide. https://www.tdi.texas.gov/pubs/consumer/cb020.html
CDC. Alcohol-Impaired Driving State Data and Maps. https://www.cdc.gov/motorvehiclesafety/impaired_driving/states-data-tables.html