Texas Auto Insurance

Texas auto insurance laws are fairly straightforward. But don't let that keep you from taking a close look at your coverage costs.

This guide:

  • Explains Texas car insurance regulations and requirements

  • Describes how Texas auto insurance rates are decided

  • Shows you how you can save money by comparing multiple quotes

Compare Quotes Instantly:

Save $300-400 or more with discount rates from all major insurance carriers, as well as local companies in Texas.

Fill out just one form to compare up to five discount quotes.

To start, tell us if you currently have insurance:

Texas car insurance laws

Texas is considered a tort state, which means that drivers bear financial responsibility for any damage and injury they cause in an accident. Most drivers fulfill this responsibility by purchasing Texas auto insurance.

Texas auto liability minimums are 20/40/15. (That's $20,000 per person for injuries you cause to the other party, up to $40,000 for all, and $15,000 for damage you cause to the other party's property.) However, insurance experts recommend carrying higher levels of coverage.

In addition to required liability coverage, Texas drivers may choose to purchase coverage for some "first party benefits". These include compensation for medical expenses, loss of income, and loss of services. These benefits apply to every accident regardless of fault.

Uninsured and underinsured motorist policies also cover your expenses, but these apply in the event that you are struck by a driver with inadequate liability insurance. These policies are not required, but they're relatively inexpensive, and can provide a lot of protection.

Texas auto insurance companies will also offer optional policies such as collision and comprehensive coverages.

How Texas auto insurance rates are set

The price of Texas auto insurance is decided by the behavior of the state's drivers as a whole. Texas auto insurance companies take the cost of insuring Texas drivers (this includes settlements and legal fees) and divide it up among the drivers.

But these costs aren't spread around evenly. Instead, the percentage you pay is decided by things like your driving record, your age, where you live, and the kind of car you drive.

Of course, not all insurance companies compute their figures in the same manner. This means that they will charge different rates on the same driver.

What this means for you as a driver, is that you need to shop the different rates (and they'll be very different!) for the best deal. It's the fastest easiest way to save on an Texas auto insurance policy.

Luckily for you, shopping around is easy to do online because.

Where to get Texas auto insurance quotes.

The following web sites will help you find Texas car insurance quotes: (these links will open in a new window)


  • ComparisonMarket is the easiest and most accurate online quotes service, the place where you're likely to find the best coverage for the least amount of money.

Click here for your quote.

Others:

• Esurance - a national provider of coverage to all drivers. Big savings if you Quote/Buy/Print online!

  • Netquote is particularly useful if you want a local agent to contact you.

  • Geico - a great service, especially for those who can't get insured elsewhere. Be sure to complete the entire quote form!

  • Get quotes in your area, using your ZIP code to find local agents. Enter your ZIP below to get a quote from a local provider:

To speed up the process, you might wish to have some information required for an online quote ready before you begin.

More TX car insurance help

If you want more help designing your TX auto insurance policy, read our guide to setting safe and reasonable car insurance coverage levels. It contains loads of money-saving tips, too.

To find out more about TX auto insurance laws and regulations, visit the state's official website of the Texas Department of Insurance.

Free Auto Insurance Course!

Learn how to save the most money on your next policy with our free insurance course. Learn how to set the right coverage levels, what options to avoid, and the general philosophy of insurance, that will keep you saving for years to come. Sign up here: