Automobile Insurance for New Residents Texas TX

Reader’s Question:

I have recently moved to Texas and am planning to buy a car. Do I need to have automobile insurance policy before I can apply for a Texas Driver’s License?

Bill

Austin, TX

Yes, you have to have an automobile insurance policy before you can apply for a Texas Driver’s License. People applying for a Texas Driver’s License are required to present proof of automobile insurance coverage. Texas traffic laws require motorists to shoulder expenses for the accidents they get involved in. Texas residents meet this by availing of an automobile liability insurance policy. Automobile liability insurance pays for the costs incurred after an accident. These include hospitalization expenses to treat injuries, for you or the other motorist. Automobile insurance liability coverage also shoulders the cost of repairs done or replacement of the other motorist’s car. You must have adequate liability insurance to pay up to $25,000 in medical expenses for one person or up to a total of $50,000 in medical expenses for everyone injured in the accident. You also must have a minimum of $25,000 automobile liability insurance coverage for repairs or replacement of the other party’s car. Vehicle repair or replacement and medical expense can be very costly. For that reason, minimum automobile liability insurance might not be sufficient to cover your obligations if you are responsible for a serious accident. It would be smart to avail of a higher automobile liability insurance coverage, although this may result in a higher policy premium.

Tags: auto insurance coverage, auto insurance premium, car insurance law, liability insurance