Desert sands, wetland springs, forests, coastal plains and farmland, mountains, and densely populated cites such make it absolutely essentials that residents of the State have proper Texas auto insurance. On average, motorists experienced a big decrease of 6.3% in Texas auto insurance rates when their premiums went from $1801 to $1605 in 2006-2007. This drop in premiums made Texas insurance rates one of the lowest in the nation.

Texas Auto Insurance Requirements

Like most States, Texas requires that its motorists carry a minimum amount of Bodily Injury Liability and Property Damage Liability Insurance. The current basic liability is set at 20/40/15.

• Bodily Injury Liability – With the minimum requirements, Texas auto insurance companies will pay out the maximum of $20,000 for medical expenses to the person in the other car when their insured has caused the accident.
• A total of $40,000 will be paid out for more than one passenger who sustained injuries and needs medical treatment in the other car or vehicle.
• Property Damage Liability Insurance – A total amount of $15,000 will be paid out for damage sustained to the other driver’s vehicle and for cost of repairs to public and private property as a result of the accident the insured had caused.

Texas cautions its motorist that minimum coverage would not be sufficient to cover all accidents as the costs of medical expenses is on the rise, and damages can be exorbitant as well, therefore it is recommended that Texas auto insurance taken out by motorists be much higher than the State requires.

Texas also recommends that its motorists take out Comprehensive and Collision coverage to pay for damage they caused to their own vehicle, when they are the driver who is at fault. Comprehensive and Collision coverage will also protect from damage sustained by natural causes such as storms and from damage caused by wildlife.

Because of the fact that not all States require that their Motorists carry liability insurance and there is an influx of tourists continually driving the Texas roads and highways, the State recommends that its motorists carry Uninsured/Underinsured Motorist Protection, in the event that they were hit by a driver who was not insured or was underinsured and or if they were hit by a hit an run driver.

GAP insurance is also a recommended by Texas auto insurance companies and the State of Texas for motorists who are still paying for a loan on their car. If the car should be totaled in an accident, only the Blue Book value will be paid out, that amount may not cover the loan debt still required. Therefore, it would be wise to have GAP insurance to cover the difference so that a motorist would not be required to continue paying for a car they no longer own.