People often ask: “How much car insurance do I need in Texas?”
It sounds like a simple question. But the truth is that the right car insurance coverage for you largely depends on your situation. You must consider your finances, your risk tolerance, and how much protection you want for yourself and your loved ones if something goes wrong on the road, among other important factors.
Texas is an “at-fault” state when it comes to car crashes. That means the person who causes the accident is legally responsible for the damages. This can include medical bills, lost wages, and pain and suffering. Because of this, choosing the right car insurance coverage is about more than following the law. It’s also about protecting yourself from financial disaster after a serious accident.
In this blog, we’ll walk through the major types of auto insurance coverage in Texas, what the law requires, and what I recommend as a personal injury attorney who’s seen far too many clients face the consequences of inadequate coverage.
What is the minimum auto insurance required in Texas?
Texas law requires all drivers to carry liability insurance. The minimum coverage amounts per accident are:
- $30,000 for bodily injury per person
- $60,000 for total bodily injuries, no matter how many people are injured
- $25,000 for property damage
This is commonly referred to as 30/60/25 coverage.
But it’s easy to see a pretty big problem here. These numbers haven’t kept up with the cost of medical care, vehicle repair, or lawsuits.
A single night in the hospital can eat up that $30,000 limit. And if multiple people are injured, covering all their costs with only $60,000 can be wishful thinking at best. If you’re at fault in a serious crash, the injured party can come after your personal assets (like your home and bank accounts) once your insurance runs out.
My strong recommendation: Increase your liability limits
To better protect yourself and your financial future, I recommend purchasing at least $100,000 per person in bodily injury liability coverage.
Why? Because if you cause an accident and someone is seriously hurt or killed, their medical bills and lost wages can quickly exceed the minimum limits. And if they sue you, everything you’ve worked for — your home, your savings, and even your future wages — could be at risk.
The good news is that higher liability limits don’t tend to cost a lot more. For a relatively small increase in premium, you can gain greater peace of mind knowing that you and your family are better protected.
CASE STUDY: $530K policy limits settlement won after serious crash with multiple victims
How much property damage liability do you need?
Property damage liability insurance covers items that were harmed or destroyed in an accident. That can include the vehicles involved, property within the vehicles, and items that may have been hit in the surrounding environment such as homes.
The $25,000 Texas state minimum for property damage liability is often sufficient for accidents.
Should you add personal injury protection (PIP)?
Yes. Many people have some level of PIP coverage. Personal injury protection insurance is not mandatory in Texas, but insurance companies must offer it. And you have to reject the offer in writing if you don’t want it.
Why is PIP so important? It helps pay for your medical expenses, lost wages, and certain household services after a crash, regardless of who caused it. Even if you have health insurance, PIP can help cover deductibles and co-pays. It can also help with lost income if you’re unable to work. In many cases, this money can make a big difference in your recovery and in keeping your finances stable after a crash.
PIP typically comes in coverage amounts of $2,500, $5,000, or $10,000. As someone who’s worked with countless accident victims, I strongly recommend choosing at least $10,000 in PIP coverage.
RELATED: What is personal injury protection and do I need it in Texas?
What about uninsured and underinsured motorist coverage?
Uninsured and underinsured motorist coverage (UM/UIM) is another must-have for nearly every car insurance policy.
Texas has a relatively high rate of uninsured drivers compared to other states in the country. If you’re hit by someone who has no insurance or not nearly enough to cover your damages (remember how low minimum coverage is), you could be left holding the bag for your own medical bills and lost wages.
That’s where uninsured motorist (UM) and underinsured motorist (UIM) coverage come in. They step in and help pay for your injuries if the driver who caused the crash can’t.
My recommendation: Buy at least $100,000 per person in UM/UIM coverage. It’s usually very affordable, and it can protect you from devastating financial consequences after a crash that isn’t your fault.
You can’t depend on the other driver in an accident to always have the coverage you need, so UM/UIM coverage is worth the investment in your well-being. It has proven invaluable to our clients in multiple cases.
CASE STUDY: Crosley Law helps expecting mother obtain max compensation
Do I need collision and comprehensive coverage?
- Collision coverage pays for damage to your car after a crash, regardless of fault
- Comprehensive coverage pays for non-collision damage like theft, fire, hail, vandalism, or hitting an animal
If you’re leasing or financing your vehicle, your lender will require these. I also recommend them if your vehicle is relatively new and undepreciated in value.
But if your vehicle is more than 3 years old, comprehensive and collision coverage might not be worth the added costs to your premiums. Again, assess your risk tolerance. Is the monthly premium worth it when you compare it to the replacement cost of your vehicle?
What is “full coverage” in Texas?
“Full coverage” is a misleading term. It’s not a specific policy. It just means your insurance includes:
- Liability (bodily injury and property damage)
- Personal Injury Protection (PIP)
- Uninsured/Underinsured Motorist (UM/UIM)
- Collision
- Comprehensive
If you want true peace of mind, full coverage with high limits is the way to go. Don’t settle for the minimum required coverage if you can help it.
Summary: How much car insurance do you need in Texas?
Here’s my recommended checklist for Texas drivers who want to better protect themselves and their families in the event of an accident:
- Bodily Injury Liability: At least $100,000 per person/$300,000 per accident, but more if you can afford it
- Property Damage Liability: At least $25,000
- Personal Injury Protection (PIP): $5,000 minimum (do not reject this)
- Uninsured/Underinsured Motorist (UM/UIM): At least $100,000 per person/$300,000 per accident, but more if you can afford it
- Collision Coverage: Yes, with a $1,000 deductible on newer cars
- Comprehensive Coverage: Yes, with a $1,000 deductible on newer cars
If You’ve Been Hurt in a Texas Car Accident, Call Crosley Law
Whether you have minimum insurance or full coverage, things can get complicated after a crash. Insurance companies will try to protect their bottom line and pay out as little as possible. Having an experienced car accident attorney on your side can provide much-needed leverage in negotiating a settlement or going to trial, if necessary. We will fight to get you the maximum recovery allowable.
RELATED: Is it better to settle or go to trial after a car wreck?
If you or someone you love has been injured in a car accident in Texas and you need help dealing with the insurance companies or making a claim, reach out to Crosley Law.
We have the experience, the resources, and the compassion to help you through this difficult time. We’ll fight to get you the compensation you deserve, and you never pay us unless we win.
Call our San Antonio office at (210) 625-8380 or fill out our online contact form to schedule a free consultation with one of our attorneys.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
