Car insurance laws vary by state and before you get a car it's important to know what those laws require. Aside from your driving record and where you live, the kind of car you buy also helps determine your insurance rates. Be aware of this before getting your new BMW 335i on your $35,000 annual salary.
Texas law requires car owners to have liability insurance at a minimum. A police officer may ask you for proof if they pull you over, and if you don’t have it you could be fined $350 and required to fill out an SR-22 form.
Like anywhere else Texas has legal minimum rates for its liability coverage. The auto insurance you really need must cover $30,000 for each injured person (up to $60,000 per accident) and $25,000 for property damage. In order to have insurance cover the damages your car (or you) sustain in the event of an accident, you’ll have to consider personal injury protection or collision and comprehensive.
If you don’t have health insurance some medical coverage would probably be a good idea. Uninsured/underinsured motorist insurance is a must-have, as it will cover you in the event you are hit by a driver who does not have insurance. The cost of your liability will determine how much-uninsured motorist coverage you need. Collision and comprehensive is a judgment call, but it should depend on how old your car is and if whether or not you can afford to replace it.
The cost of your insurance depends greatly on you, your record and the type of vehicle you own. Insurance companies factor in your age, your driving record (accidents, tickets etc.), what kind of insurance claims have been reported in your neighborhood, etc. So as long as you've been a perfect driver your whole life, your insurance should be very affordable.
Bottom line is if you’re driving, you definitely need car insurance in Texas or else you’ll be fined a lot of money. If you get into an accident without insurance, you’ll be forced to pay for any and all damages out of your own pocket. Protect yourself by getting at least liability and uninsured/underinsured motorist coverage.
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