Texas auto insurance laws affect more of your daily life than you may realize. Texas has minimum requirements for certain types of car insurance, while others are optional.
Driving without the mandatory auto insurance minimums can have severe penalties that can impact your ability to drive legally. Learn how to stay legal while driving your car and what to do if an insurance company refuses to pay a valid claim in bad faith.
Car Insurance Laws in Texas You Need to Know
Texas drivers need to know about the state’s auto insurance laws. It is important to understand car insurance requirements before driving your vehicle on Texas roads.
If you are facing legal problems or difficulty obtaining insurance money following a Texas car accident, contact Terry Bryant Accident & Injury Law at (713) 973-8888.
Is Vehicle Insurance Required in Texas?
Car insurance is required by law in Texas. However, depending on your situation, what you are required to carry may differ from that required of another person. Two common types of required vehicle insurance are car liability insurance and collision and comprehensive auto coverage.
Required Liability Insurance
Texas law requires in-state drivers to show proof that they can cover damages for accidents they may cause. Most Texans choose to do this by purchasing vehicle liability insurance. Liability insurance can cover repairing or replacing the other party’s vehicle or property or paying medical bills when you cause an accident.
Required Collision and Comprehensive Auto Coverage
If you are still making monthly payments on your auto loan, your lender will likely require you to carry collision and comprehensive coverage. This requirement is to help protect your lender’s investment. If you are involved in a car crash, this coverage will pay to repair your vehicle, even if you are the at-fault party.
Texas Auto Insurance Legal Requirements
The relevant Texas car insurance law places minimum insurance coverage on local drivers. Other insurance types are optional or go into effect unless you opt out.
Mandatory Texas Car Insurance Requirements
Texas drivers must be insured for at least the following:
- At least $30,000 per injured person
- A minimum of $60,000 per accident
- At least $25,000 coverage for property damage.
These minimum insurance coverage requirements are called 30/60/25 coverage.
Texas does not require UM/UIM insurance to protect you from uninsured or underinsured drivers, but it may be wise to include it in your policy.
Opt-Out Texas Auto Insurance Requirements
Other insurance is required by Texas law unless you choose to opt out, including:
- Personal injury protection (PIP) insurance coverage of at least $2,500
- Uninsured motorist bodily injury insurance of at least $30,000 per person and $60,000 per accident
- Uninsured or underinsured motorist property damage of at least $25,000 in coverage with a $250 deductible.
Even if you carry every possible auto insurance policy, there is no guarantee that your insurance company will offer you the full payout you deserve. Having an experienced personal injury lawyer on your side can help you get the results you need.
Why Choose Terry Bryant Accident & Injury Law?
Terry Bryant Accident & Injury Law understands Texas auto insurance laws. Our firm has more than 35 years of experience and a handpicked team of attorneys and support staff with the experience and knowledge to win your case.
Dealing with insurance companies is an acquired skill. Their business model is relatively simple: they must collect more money than they pay out. Unfortunately, sometimes this means it can be difficult to receive the payout you are due, especially if the company is driven to maximize net profits.
Our injury lawyers possess a deep understanding of Texas car insurance laws. We are familiar with these laws and how the local courts enforce them. If an insurance representative is attempting to negate or minimize your insurance payout, you may need professional help. Our attorneys know exactly how to cut to the chase, speak their language, and get you the compensation you deserve.
Terry Bryant Accident & Injury Law has been working for Texans’ rights since 1985. We have recovered more than one billion dollars in damage awards, settlements, and insurance premiums in that time.
Call us now at (713) 973-8888 to discuss your case with an experienced Texas car accident lawyer.
Bad Faith Auto Insurance
The term “bad faith insurance” describes a valid claim against an unscrupulous insurance company for its unlawful claims handling actions.
Your insurance company owes you a duty of good faith and fair dealing. If your insurance company has acted unfairly or unethically, you may have a substantial legal claim against the Texas car insurance company for how they have mishandled your claim.
Successful bad faith claims against insurance companies typically fall into two categories: statutory violations and common law bad faith. The Texas Insurance Code provides guidelines for how insurance companies must treat their policyholders.
Examples of Bad Faith Car Insurance Claims
Not every denial of a claim is considered bad faith. Sometimes an insurance company is within its rights to deny a car insurance claim. Understanding when car insurance companies cross the line into bad faith can help you determine what actions to take.
Examples of bad faith auto insurance actions include:
- Making threats
- Offering less compensation than a claim is worth
- Refusing to pay a valid claim
- Denying a claim without providing a reasonable explanation
- Delaying decisions on claims
- Failing to conduct an immediate and thorough investigation.
If your insurance company has acted similarly to any of these examples, you may have a valid bad faith car insurance claim.
Take Action Against Bad Faith Insurance
Bad faith actions often fall into a gray area, where it can be challenging to determine whether the action is legal. If you have any doubt, it is prudent to consult with a Texas bad faith insurance attorney to determine the validity of your claim. If the auto insurance company did act in bad faith, you could take legal action against the insurance adjuster.
Losing Your Auto Insurance and Car Insurance Laws in Texas
Losing your auto insurance can open you up to liability in Texas and may even make driving your vehicle illegal. The most common ways to lose auto insurance are through nonrenewal or cancellation.
Nonrenewal of Car Insurance
Sometimes, an insurance company may refuse to renew your policy after it expires. The company must issue you a letter stating that it will not renew your policy at least 30 days before it expires.
Cancellation of Auto Insurance
Car insurance cancellation occurs if you or the insurance company stops your coverage before the policy’s end date. The company can cancel your auto insurance policy in the first 60 days for any reason except an illegal reason, such as discrimination. The company must give you 10 days’ warning before your policy’s cancellation.
Your insurance company can cancel your policy at any time if you commit one of the following wrongful actions:
- Filing a fraudulent insurance claim
- Halting your premium payments
- Losing your right to drive via a driver’s license or car registration revocation or suspension.
If the insurance company has canceled your car insurance for illegal reasons, a car insurance attorney can advise you on your legal options.
Car Insurance Laws in Texas FAQs
The following are our answers to some frequently asked questions about car insurance laws in Texas. These answers are generalized; sometimes, there are exceptions. For more tailored answers to your inquiries, contact us to discuss your case.
Is car insurance mandatory in Texas?
Yes, some types of car insurance are mandatory in Texas if you want to drive your car. Drivers must fulfill the minimum 30/60/25 insurance requirements to legally drive their car on Texas roads. Other insurance, such as collision and comprehensive insurance, may be mandatory if you still make car loan payments. Additional insurance options are recommended, but Texans can opt out of them.
Does insurance follow the car or the driver in Texas?
In Texas, car insurance follows the car, not the driver. Suppose you lent your vehicle to a friend, and they got into an accident. In this case, your insurance would kick in, not theirs. If your insurance was insufficient to cover the total cost of the damages incurred in the accident, then your friend’s insurance would cover the remainder up to their limits.
Can I drive a car in Texas without insurance if I just bought it?
Yes, you can drive a newly purchased car without insurance for a limited time. Texas has a new-car insurance grace period that is generally between two days and a month. This grace period dictates how long you can drive your newly purchased car before adding it to your existing car insurance policy.
The time can vary, because no Texas laws determine how much time insurance companies must give you to switch your coverage to a new vehicle. Instead, each company creates its own grace period. Contact your insurance company to see what grace periods they enforce.
Am I insured if I’m driving someone else’s car in Texas?
You are covered by insurance while driving someone else’s car if you or the car’s owner possesses insurance. This is because Texas car insurance follows the car instead of the driver. If you were to have an accident while driving someone else’s car, their insurance would pay for damages first. If their insurance was insufficient, then your insurance would cover the remainder. If neither you nor the car’s owner possesses auto insurance, you would not be covered while driving the vehicle.
What happens if someone who isn’t on your insurance crashes your vehicle in Texas?
If you have auto insurance and you let someone drive your car, your insurance will cover them if they have an accident.
Can the Texas police tell if you don’t have insurance?
Yes, most Texas police cars are equipped with computers. When the police run your license plate information, the state database will display your current insurance status. Additionally, the Texas police can pull you over for no insurance if they have a reason to believe you are uninsured.
Can you go to jail for driving without insurance in Texas?
Driving without insurance is a misdemeanor in Texas. While you are unlikely to face jail time if there are no extenuating circumstances, the hassle and fees are a good reason to drive legally.
Can police impound your car if you don’t have insurance in Texas?
Yes, the Texas police can impound your car if you are driving without insurance. The maximum penalty for driving without car insurance is a fine of $1,000, losing your driving privileges for two years, and having your vehicle impounded for 180 days.
How Terry Bryant Accident & Injury Law Can Help
The legal team at Terry Bryant Accident & Injury Law can help you obtain the insurance payout you deserve. We have the skill, experience, and determination to ensure your car insurance provider pays out the full compensation your case requires.
We have decades of experience working with auto insurance companies. Sometimes the issue is attributable to a communication breakdown. Alternatively, your insurance company may act in bad faith to avoid paying you the total compensation they owe.
Regardless of the reason, our Texas car insurance lawyers can help you get the money you need after an auto accident.
Contact Terry Bryant Accident & Injury Law for your free claim review: (713) 973-8888 or toll-free 1 (800) 444-5000.
Contact Terry Bryant Accident & Injury Law to Speak with a Car Insurance Lawyer
Following a significant car accident, the last thing you want to do is deal with difficult car insurance agents. They may be acting in bad faith if they are refusing your claim or dragging their feet on issuing your payout.
A car insurance company cannot legally deny a valid claim. Nor should they delay processing your claim without good reason. If you are having trouble recovering your due claim from a car insurance company, Terry Bryant Accident & Injury Law can help. Our car insurance lawyer will work with you to help you get the funds you deserve.
Contact us today or call us at (713) 973-8888 to begin your free consultation.
Attorney Terry Bryant
Terry Bryant is Board Certified in personal injury trial law, which means his extensive knowledge of the law has been recognized by the Texas Board of Legal Specialization, setting him apart from many other injury attorneys. The 22 years he spent as a Municipal Judge, Spring Valley Village, TX also provides him keen insight into the Texas court system. That experience also helps shape his perspective on personal injury cases and how they might resolve. This unique insight benefits his clients. [ Attorney Bio ]
