The United States’ federal system ensures that individual states have the right to determine a large proportion of their laws for themselves. Texas is a highly individual state with a unique history which makes its population and politicians far more likely to stray from the norm. Once a possession of Mexico, Texas had a revolution of its own before becoming part of the United States of America. Texans pride themselves on self-sustainability and gumption.
Texan car insurance laws differ slightly from many of the state-based insurance laws enforced across the rest of the country. Here is a quick rundown of some of the individual laws Texas enforces, as well as some of the peculiarities of insuring a car so close to the border.
Liability
Liability insurance is a legal requirement in the state of Texas. Liability insurance – or more accurately 3rd party liability insurance – covers damage to persons or property you have damaged, injured, or killed during a crash that is deemed to be your fault.
In Texas, you are required to have a minimum of:
30,000 dollars of coverage to pay out for injuries to each person involved in a crash. This is actually a relatively small amount, as a medical treatment for complicated injuries caused in automobile accidents can cost upwards of 200,000 dollars. You are still liable to be sued for medical expenses even if your insurance pays out to the injured parties.
25,000 dollars of coverage to pay for property damage. Again, this minimum liability coverage might not cover all of the expenses incurred during a car crash. Getting more than the legally obligated quantity of liability coverage is certainly recommended.
Liability insurance is the absolute bare minimum coverage that an automobile owner can buy. They are still at risk of incurring huge costs for fixing their own vehicles and healthcare after an accident.
Driving To Mexico
Many Southern Texans spend large amounts of their time across the border in Mexico. This presents a few problems in terms of the insurance. Texan auto insurance policies are not recognized in Mexico, which has relatively strict insurance laws of its own. Border areas can be a little hectic on the roads, and inexperienced American drivers can find themselves in a prang or two during their trip. People buying car insurance in El Paso TX, a large border city, are often also asked if they want to take out a Mexican liability policy add-on that will allow them to cross the border without risking getting into trouble in the event of a crash.
TAIPA
Because it is a legal obligation to have coverage in the state of Texas, there is a safety net for people who are turned down by insurance companies twice for being too risky. The Texas Automobile Insurance Plan Association helps to give risky drivers minimum coverage so that they can comply properly with the law. The formation of the association was made mandatory through the Texas Insurance Code chapter 2151.
