Auto Insurance In Texas
Reader’s Question:
I hear that Texas is one of the strictest states when it comes to traffic and insurance requirements. How do I know if I have sufficient auto insurance in Texas?
Terry
Dallas TX
Auto insurance is very important in Texas in the sense that the state requires all cars to be insured before it can be registered. Texas follows a 25/50/25 coverage, which means that the minimum amounts for various types of auto insurance in Texas should be:
- $25,000 for property damage
- $50,000 for bodily injury or death of at least two people in an accident
- $25,000 for bodily injury or death of a person per accident
This is the minimum required by the State of Texas to have your car insured and preclude you from any legal liabilities, which includes fines ranging from $175 to $350 on the first offense.
This is where Texas earns its reputation as the strictest state. If you get caught without sufficient insurance the second time, the fines become ridiculously high. Additionally, Texas has a points system that tracks the number of traffic violations you have and if you exceed six points in three years, you will have to pay heavy penalties and the risk of having your license suspended.
Moreover, Texas has a lot of other charges like assessment charges and other annual penalties. It is easy to rack up more than $5000 in annual penalties if you are not careful.
The first step in avoiding these is to have sufficient auto insurance in the said state. But do not worry, there are a lot of ways to save on auto insurance. For one, you should get a lot of quotes from different companies, whether by calling them up or visiting their Web sites. Be sure to compare different plans and get the best one that gives you the best service at a competitive price.
Also, be sure to ask for discounts. There are a lot of discounts that the public do not know, and will not get, unless they ask for it. Lastly, try asking your agent for tips on how to further lower your insurance premiums. These are usually simple and common sense steps like installing an anti-theft device, or driving less, or perhaps parking your car in your garage.