How To Buy Texas Auto Insurance

In Texas, you must carry proper insurance on your vehicle in order to legally drive it. If you're looking to buy auto insurance in Texas, here are some suggestions to help you find the perfect auto insurance policy for you.

Step 1

Look around for a good price. When you are in need of auto insurance in Texas, you should know that not every insurance company will offer you the same premiums. So rather than just settling on the first quote you get and assuming it's the best price, shop around for a few quotes from different auto insurance companies in Texas so that you can know that you are getting the best possible price for coverage. Start by contacting your preferred insurance company for a quote. But also consider talking to national insurance companies like AllState ( and State Farm ( about auto insurance. You might even find that some insurance companies are willing to match prices quotes by other companies. This gives you the upper hand when it comes to finding the best deal on auto insurance.

An average Texan pays around $825 a year for auto insurance coverage.

Step 2

Understand the minimum liability coverage requirements in your state. In Texas, all drivers are required to carry a minimum amount of liability coverage. Before you'll be allowed to register your vehicle legally in the state of Texas, you must have at least $25,000 for single bodily injury or death, $50,000 for total bodily injury or death, and $25,000 for property damage as a result of an accident.  (Only taxi drivers have the option of opting out of traditional coverage like this. They can post a financial bond instead and become self-insured.)

Since the state of Texas is a Tort state, you are required by law to cover all of the victims' expenses should you become involved in an at-fault accident. So while Uninsured / Underinsured motorists coverage is not required by law, it certainly is recommended. Carry as little as $50,000 of this additional coverage on your auto insurance policy in Texas so that you will be financially covered if you're ever to blame for an accident.

Step 3

It is recommended that you insure everyone in your household. By law, the state of Texas allows for some drivers in a household to be excluded from your insurance policy. Even though this may lower your annual auto insurance premiums a bit, it is not without its risks. Making exclusions on your auto insurance policy means that any excluded driver will not be covered in the event of an accident. Think of the cost of paying for all the bills associated with an accident out of your own pocket, and you'll quickly realize that it's worth the extra expense to have the peace of mind that your policy covers everyone who drives your vehicle.

Step 4

Know how your rates will be determined. When an auto insurance company is determining what rates and products to offer you on your auto insurance policy in Texas, many things are considered. They first look at your past credit history (or credit score) to determine whether you'll be an insurance risk. In addition, Texas auto insurance companies will take into account your age, gender, location, car and personal driving history when determining your premiums.


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