auto Texas insurance rate

Reader’s Question:

What is required in the state of Texas as full coverage insurance on a vehicle that is being financed?

Orly

Thank you for asking Orly.

The Texas Department of Insurance states that , law requires you to have auto liability insurance of:

$20,000 per injured person, up to a total of $40,000 per accident

$15,000 for property damage.

This is called 20/40/15 , the basic liability insurance coverage in the state of Texas coverage.

The TX DOI states that if your vehicle has a lien holder attached to it, thus you still owe money on your vehicle your lender requires you to also get collision and comprehensive coverage above and beyond the minimum liability coverages.

It is the financial institute that has interest in the vehicle that typically requires what insurance you have on the vehicle and not the state. Collision and comprehensive insurance coverage on a vehicle helps to protect the vehicle.

Goodluck!

MariCAR