When Is Auto Insurance Required?

In most states, including Texas, drivers are generally required to carry minimum amounts of auto insurance by law; however, there may be some exceptions if a driver can otherwise prove financial responsibility through other approved methods.

Regardless, auto insurance is a critical element of responsible motoring and is essential to avoid out-of-pocket expenses.

What Is Required by Law?

The law in Texas requires motorists to prove financial responsibility; most people retain liability insurance to satisfy this obligation. Minimum liability insurance coverage includes the following:

• Bodily injury liability—This coverage can pay for lost earnings, medical bills and other costs associated with injuries you, as the driver, cause to others in an accident.

• Property damage liability—This coverage can pay for repairing or replacing another person’s property (typically their vehicle) if you cause damage in an accident.

Your financial institution may also stipulate specific coverage requirements if you finance your vehicle. Always check your lender’s terms and conditions.

What Other Coverage Types Exist?

Aside from the legal requirement, auto insurance safeguards your financial stability. Car accidents can lead to substantial costs, including medical bills, vehicle repairs and legal fees. Without insurance, these costs would come directly out of your pocket.

Several additional coverage types can help ensure robust protection, including the following:

• Comprehensive coverage—This may cover your vehicle damage resulting from incidents other than accidents, such as theft, fire, or natural disasters.

• Collision coverage—This may cover your vehicle damage resulting from collisions, irrespective of who is responsible.

• Medical payments coverage—This may cover the health care costs of you and your passengers if you are injured in an accident.

• Uninsured/underinsured motorist coverage—This may cover your expenses if you’re in an accident caused by a driver who doesn’t have adequate insurance.

What If I Drive Other Vehicles?

Your auto insurance may provide coverage if you drive someone else’s car or a rental car for personal use.

However, auto insurance policies vary. Always review the conditions of your chosen policy and work with an insurance professional from Festival Auto Insurance to make sure you’re covered.

How Do I Get Auto Insurance?

Auto insurance isn’t just about complying with the law—it’s about protecting yourself, your loved ones and your assets. Festival Auto Insurance can assess your needs and secure robust coverage to protect you financially. Contact us today to find out more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.