What Is Full Coverage Auto Insurance in Texas?

All cars---even non-working ones---must have insurance in Texas.

Texas state law requires all motorized vehicles to have insurance. Motorists can choose between the liability insurance, or purchase full coverage that pays for damages to all property involved in a crash, along with medical and personal injury coverage.

Requirements

Texas law requires that all vehicles carry liability insurance coverage. The minimum coverage limits are $25,000 worth of property damage, $25,000 of bodily injury and death coverage for a single person and $50,000 of coverage for bodily injury and death benefits for two or more people. Drivers can upgrade to full coverage, which provides similar benefits to the driver and his vehicle as well. The state requires that drivers who finance their vehicles carry full coverage.

Function

Liability insurance provides no benefits to the policy holder, but helps pay for damages incurred to another person's property or bodily injuries. Full and comprehensive coverage assures a car's lien holder that any remaining balance on the vehicle will be paid should an accident leave the vehicle a total loss.

Penalties

Anyone charged with failing to abide by Texas auto insurance laws may receive a fine of between $175 and $350. Fines continue to rise with each offense, and a third offense can result in a vehicle impound and a driver's license suspension.

Considerations

All street legal vehicles in Texas must have insurance coverage. There are no exceptions for non-working cars, vehicles in storage or vehicles that are never driven.

References

• Automotive: Texas Auto Insurance Laws