Texas to Increase Mandatory Minimum Auto Insurance Limits
Texas to increase mandatory minimum auto insurance limits which will lead to a three percent increase in Texas car insurance premiums. Texas mandatory minimum car insurance limits increased to 30/60/25 from 25/50/25. States increase their mandatory minimum liability limits to keep up with the rising costs of repairing damaged vehicles and medical care. If you’re from Texas, enter your ZIP code below to see how the increase affects your Texas auto insurance rates.
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UPDATED: Jan 8, 2024
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UPDATED: Jan 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you are a Texas motorist who carries state mandatory minimum auto insurance, you can expect a 2-3% increase in your auto insurance premiums in 2011.
The Texas Department of Insurance has mandated the current auto insurance liability limits be increased to 30/60/25 from 25/50/25.
The rollout of this plan is expected to take two years as car insurance companies release their new products (with higher minimums) and renew existing minimum limit policies with the new higher limits.
States increase their mandatory minimum liability limits to keep up with the rising costs of repairing damaged vehicles and medical care.
What should I expect?
Texas auto insurance laws requires drivers to show proof of insurance that they have the financial responsibility to pay for the accidents they cause. This is mostly done by purchasing auto liability insurance. Automobile liability insurance pays for repairs and replacement of the other driver’s car or other damaged property as well as their medical expenses when you’re the at fault driver in an accident.
If you still have a loan on your car, the auto insurance company will require comprehensive coverage and collision coverage. Comprehensive coverage will pay if your car is stolen or damaged by an event other than a collision, while collision insurance will cover the repairs or replacement of your car after an accident.
Additional coverage options include medical payments coverage to cover your and your passenger’s medical bills and personal injury protection that apart from covering your and your passenger’s bills, it pays for lost wages and other nonmedical costs.
Your liability limits will automatically increase if you purchased an auto insurance policy with the old minimum limits prior to the New Year.
And you will likely side-step the rate increase until your next renewal.
If you happened to purchase a 12-month policy versus a six-month policy, you will be insulated against the increased rates for a little while longer.
This means if you purchased a new policy in December with 25/50/25 limits, and caused an accident this January, the injured party would be able to collect damages in the amount of 30/60/25, even though you didn’t have to pay any extra for the increased coverage.
If you purchase a new auto policy after January 1, 2011, your auto insurance premium will already reflect the higher limits and any accompanying rate increase… assuming your insurer actually increased rates as a result of this change.
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What’s not automatically changing?
Uninsured motorist coverage and underinsured motorist coverage are not state-mandated coverage.
If you purchased the minimum limit UM and UIM coverage of 25/50/25 prior to January 1, 2011, your policy’s UM/UIM limits WILL NOT automatically adjust to the higher limits of 30/60/25, in the same manner, your bodily injury liability and property damage liability limits increase.
Basically, there is no provision in the financial responsibility laws for Texas that states UM/UIM limits have to increase mid-term (after a policy has already been issued).
So insurance companies are not likely to give you the increased limit as a “freebie.”
This is important because UM and UIM coverage is designed to reimburse YOU for bodily injury and property damage you suffer as a result of an accident that was not your fault.
For example, if you were injured in an auto accident by a driver who had no insurance, or not enough insurance, your own insurance company will award you damages (and likely subrogate, or “go after” the at-fault party in court).
If you want the higher UM/UIM limits; you must request the coverage increase through your insurer or insurance agent.
Contact your insurance company or an independent insurance agent if you are unsure about your current auto insurance policy limits or if you want to increase your existing minimum UM/UIM limits to the new minimum for a policy purchased prior to January 1, 2011. (For more information, read our “Auto Insurance Checklist: What to Ask Your Agent”).
Read more:
- How insurance rates are determined.
- Contents Insurance Limits and Sub-Limits
- Top Commercial Auto Insurance Companies in Texas
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts.