Understanding Liability Car Insurance in Texas: What It Covers and Why You Need It
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If you live in Texas and operate a vehicle, you're required to carry Texas liability car insurance. Your insurance policy pays for damage and bodily injuries to other parties if you're at fault for a collision. If you don't own your vehicle outright, the lender may require you to purchase other types of car insurance, including collision and comprehensive insurance.
Here's what to know about liability car insurance in Texas, including how to find an affordable policy.
What Is Liability Car Insurance?
Liability-only car insurance in Texas is a basic type of coverage that helps pay for damage to another driver's vehicle if you're at fault for the wreck. It may also pay for medical expenses and similar costs to individuals injured in the accident. Note that a liability insurance policy will not pay for damage to your vehicle or your personal injuries.
All individuals who operate a vehicle must carry car liability insurance in Texas. You may purchase additional insurance if your auto lender or lessor requires it or for extra peace of mind. It's not uncommon for lenders to require drivers to purchase additional liability insurance above legal stipulations and to carry other types of coverage, such as comprehensive and collision insurance.
If you're in a collision with another driver deemed at fault, their auto insurance policy should pay for your vehicle repairs and medical expenses. However, you may need to make up the difference if they don't have insurance or their policy doesn't have enough coverage to pay the full extent of your losses. Purchasing uninsured and underinsured coverage can fill in gaps so you're not stuck with an unexpected bill.
Legal Requirements for Liability Car Insurance in Texas
Texas requires a minimum of 30/60/25 liability insurance. That means you must carry:
- $30,000 in coverage per person for injuries in a single accident
- $60,000 for all individuals injured in a single collision
- $25,000 for property damage in an accident
You may purchase more liability coverage for extra protection or if your auto loan provider or lessor requires it. The additional insurance may provide peace of mind if you're involved in a multi-car accident or a serious collision resulting in severe injuries or death.
Review the insurance requirements of your state:
What Liability Insurance Covers
What does liability car insurance cover in Texas? Let's look at the two types of losses: bodily injuries and property damages.
Bodily Injury Liability
Bodily injury liability pays for medical expenses to others hurt in an accident you cause. It may cover things like:
- Hospital stays
- Ambulatory transport
- Doctor's visits
- X-rays and other diagnostics tests
- Physical therapy
- Pain and suffering
If someone is killed in the accident, your liability coverage may pay for funeral and burial expenses. It may also cover the cost of your legal representation if an involved party decides to sue you.
Bodily injury liability insurance only covers the amount stipulated in your policy. For instance, if you carry the standard 30/60/25 Texas policy but the other party's medical expenses are $100,000, your coverage may only pay for $30,000 of their costs, not the entire amount.
Property Damage Liability
Property damage liability insurance pays to repair the vehicle damaged in a collision you cause. For instance, if you run into the back of another driver's car, your insurance may pay to repair their bumper and trunk.
Property damage may also cover repairing or replacing other objects in a collision. If you crash into a building or someone's front yard, your policy may cover the costs of repairs. The amount paid to repair or replace damaged vehicles or items is limited to the amount of your liability coverage.
Factors Influencing Liability Insurance Rates
If you own and operate a vehicle in Texas, you must have car insurance that meets state minimum requirements. It's an extra cost to include in your monthly budget. Car insurance companies in Texas will consider several factors when deciding on your insurance premiums.
Demographics
Your age, gender, and marital status may affect your rates. Drivers between 18 and 24 typically pay the most for Texas auto insurance, as do women and single individuals.
Location
Insurance providers consider your ZIP code when deciding on an appropriate rate. Individuals who live in rural areas or places with lower car theft rates may pay less for a policy.
Driving History
Your provider may charge you more for coverage if you have a history of insurance claims or driving infractions.
Vehicle Make and Model
Insurers look at your vehicle's make and model to determine its worth and whether it includes safety features that reduce the risk of an accident. Driving a luxury vehicle or sports car may increase your rates.
Amount of Coverage
The higher your coverage liability limits, the more you'll pay for insurance. The insurer will likely charge you more if you request higher bodily injury or property damage limits or add additional coverages.
How To Choose the Right Liability Insurance Policy
Finding the right insurance for you starts with determining your needs. Are you comfortable purchasing liability-only coverage that meets state limits, or do you want additional coverage for extra protection? You may also opt into other coverage types, such as collision, comprehensive, and underinsured/uninsured motorist coverage.
Once you decide on the coverage levels and types you need, it's time to shop for an insurance policy. Requesting quotes from several providers is a good idea, as rates can vary tremendously from one insurer to another.
At EverQuote, we make insurance shopping easy. By providing basic information about yourself, your vehicle, and the coverage you want, you can obtain custom insurance quotes from several providers to compare rates. It only takes a few minutes of your time — and it can save you a surprising amount of money. Start today with EverQuote.
Final Advice for Texas Drivers
Like all states, Texas requires drivers to carry car insurance. Insurance helps protect you and others in the event of an accident. Knowing Texas car insurance liability requirements enables you to comply with the law when buying your next policy.
If your vehicle is under a loan or lease, review the contract to determine whether your lender requires additional insurance. Also remember, you can always buy extra coverage if you think you may need it.