Texas Liability Insurance: What It Covers (2024 Guide) – MarketWatch

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What Does Texas Liability Insurance Cover?

Every state sets its minimum insurance requirements in order for a driver to get behind the wheel legally. In Texas, liability insurance requirements comprise two parts:

Type of Liability Insurance What It Covers Texas Coverage Limits
Bodily injury liability Medical bills, lost wages, pain and suffering and funeral costs for another driver and
their passengers in a car accident you cause
$30,000 per person and
$60,000 per accident
Property damage liability Repair costs to another party’s car or property in an accident for which you’re at fault $25,000

How Does Liability Insurance Work in Texas?

You’ll often see those liability policy limits written as 30/60/25. Here’s a breakdown of what the limits mean for Texas drivers who are at fault for an accident:

  • Bodily injury limit per person (30): Texans are required to have at least $30,000 in bodily injury liability coverage per person. If you purchase the minimum coverage, your insurer will pay up to $30,000 to cover medical expenses for a single person if you cause a car accident. 
  • Bodily injury limit per accident (60): Texas law requires drivers to carry at least $60,000 in bodily injury coverage per accident. If you opt for a minimum liability-only policy, your insurer will cap the amount it pays for injuries to the other driver and their passengers at $60,000.
  • Property damage limit per accident (25): The state of Texas requires motorists to hold at least $25,000 in property damage liability coverage per accident. If you have a liability-only insurance policy, your provider will pay a maximum of $25,000 for the total damage to property in an accident you cause.

What Texas Liability Insurance Doesn’t Cover

It’s important to remember that liability insurance covers medical and property damage expenses for the driver and passengers in the other car. Here’s what Texas liability insurance doesn’t cover:

  • Your medical bills, lost wages or pain and suffering
  • Repair or replacement costs for your vehicle
  • Towing services for your car
  • A rental car, if yours is in the shop for repairs
  • Medical expenses for your passengers injured in an accident you cause

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Other Types of Coverage in Texas

While purchasing a policy that satisfies only the state minimum is one way to get cheap car insurance, we recommend buying a full-coverage policy to ensure you and any passengers or loved ones are fully protected after an accident. In the table below, we’ll take a look at the other types of car insurance that you may want to consider.

*In Texas, you must tell your insurer in writing if you decline this coverage.

How Much Does Texas Liability Coverage Cost?

Liability insurance in Texas costs an average of $57 per month or $683 per year. This price is close to the national average of $52 per month or $627 per year.

Cheapest Texas Liability Insurance

According to our research, State Farm and Texas Farm Bureau Insurance tend to offer the cheapest liability insurance in the Lone Star State. 

Texas Insurance Provider Average Monthly Cost Average Annual Cost
State Farm $27 $325
Texas Farm Bureau Insurance $31 $374
Geico $40 $474
USAA $40 $481
Allstate $50 $594
Redpoint Insurance Group $55 $657
Auto Club Enterprises $57 $682
Nationwide $64 $764
Progressive $65 $784
Farmers $141 $1,690

Factors That Affect Car Insurance Rates in Texas

Car insurance quotes are highly personalized. Insurance companies look at several factors to determine your quote.

These factors include:

  • Location: If you live in a more densely populated area, you’ll probably pay more than rural drivers for car insurance.
  • Age: Drivers in their 20s and below and drivers in their 60s and up typically pay the highest car insurance rates. 
  • Driving history: If you have a recent speeding ticket, DUI conviction or at-fault accident on your driving record, you’ll pay more for Texas auto insurance.
  • Credit history: Drivers with poor credit will have higher insurance rates.
  • Gender: Male drivers are statistically more likely to get into car accidents, so they tend to pay more for coverage.
  • Marital status: Married drivers tend to pay less than single drivers for auto insurance.
  • Vehicle: Vehicles that are more expensive to repair will be costlier to insure.

The type of coverage and insurance deductible amount you choose also determines your insurance premium. Liability insurance policies don’t come with deductibles, but if you decide to purchase full coverage, keep in mind that the higher the deductible, the lower your premium.


What Happens if I Drive Without Texas Car Insurance?

According to the Texas Department of Insurance and state law, you won’t go to jail if you get caught driving without insurance in Texas, but you could face other penalties. These include:

  • Fines of up to $1,100
  • Driver’s license suspension
  • Vehicle impoundment

You may also receive a fine if you’re pulled over for a traffic violation and can’t produce proof of insurance. Carry your insurance card in your glove compartment so it’s easily accessible in the event of a traffic stop.


Texas Liability Insurance: The Bottom Line

Texas law requires that all drivers hold bodily injury and property damage liability insurance. You’ll see the minimum requirements listed as 30/60/25. Texas liability insurance costs about the same as the national average.

Top Auto Insurance Recommendations

When shopping for car coverage, the best way to find the most affordable rates is to compare several different auto insurance quotes. That way, you can get a good sense of what you’re likely to pay based on your particular needs. 

Our team did a deep dive into the insurance industry in the nation and found that Allstate and Geico are two of the top insurers in the country. We recommend getting free quotes from both providers.

Compare: Allstate vs. Geico

Allstate

Allstate is a wise choice for Texas liability insurance. The company is one of the largest providers in the nation, offering below-average rates. In addition to liability-only auto insurance policies, Allstate offers the standard types of insurance that make up a full-coverage policy. The company also has a number of add-on options to choose from, including rideshare insurance, sound system insurance, roadside assistance and classic car insurance.

Read more: Allstate Insurance Reviews

Geico: Best for Budget-Conscious Drivers

Geico is one of the most popular auto insurance providers, especially for people on a tighter budget. It has some of the lowest rates available and has an extensive selection of car insurance discounts to help customers save more money. It has savings opportunities for good students, defensive drivers, drivers who’ve installed safety features in their cars and policyholders who bundle their auto coverage with other insurance products.

Read more: Geico Insurance Reviews


Texas Liability Insurance: FAQ

Below are frequently asked questions about Texas liability insurance.


Texas liability coverage is not full coverage. A full-coverage policy in Texas, however, includes bodily injury and property damage liability.


A Texas liability insurance card is a document that shows proof of insurance. If you get pulled over and don’t have it with you, you could face fines.


Liability insurance in Texas covers the other drivers’ and passengers’ medical bills and property damages after a car accident you cause. It includes 30/60/25 minimum liability limits, which means Texas drivers are required to carry $30,000 in bodily injury liability coverage per person, $60,000 in bodily injury per accident and $25,000 in property damage liability coverage per accident. 


Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

  • Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
  • Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
  • Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
  • Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
  • Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

  • 800 hours researched
  • 45 companies reviewed
  • 8,500+ consumers surveyed

*Data accurate at time of publication.

This post was originally published on 3rd party site mentioned in the title of this site

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