Every state in the country requires motorists to carry valid car insurance. Because car insurance requirements vary from state to state, it is important to be aware of the coverage that is mandatory in relation to where you reside.

Texas is considered a ‘Tort’ insurance state. This simply means that if involved in a motor vehicle accident, the party deemed at fault is financially responsible for paying for damages and injuries sustained. Therefore, every motorist is required to carry proof of financial responsibility in order to pay for these potential costs. This proof is usually in the form of an automobile insurance policy.

Proof of insurance must be shown at the request of a law enforcement officer when you renew your vehicle registration, when you have your vehicle inspected, or if you are involved in an accident. Failure to provide this proof will result in fines up to $1000. Your vehicle may be impounded and your license could be suspended.

Texas car insurance requirements state that all motorists must carry liability insurance. This insurance consists of two important coverage types. Bodily Injury and Property Damage protect victims of an accident from the high cost of injuries and vehicle repairs. There are minimum limits of liability coverage that you are required to purchase; however it is highly recommended that you increase these limits. With the costs of auto parts and repairs increasing constantly, it doesn’t take much for damages or medical bills to add up.

There are other options that you may add onto your Texas car insurance policy as well. Uninsured/underinsured motorist coverage is one that isn’t required but highly recommended. There are motorists on the roads everyday that drive without adequate insurance coverage and some that even drive with no insurance at all. If you happen to be involved in an accident with one of these drivers, this insurance coverage will kick in and pay for damages and injuries that their insurance should have covered.

Another optional coverage is called Personal Injury Protection, commonly referred to as PIP. PIP is an extra coverage to help with medical expenses incurred as a result of a motor vehicle collision. Such expenses may include physiotherapy, rehabilitation, home care, child care, loss of wages, or funeral expenses.

If you have a newer vehicle, you may want to consider adding collision and comprehensive coverage to your policy. Collision will cover physical damages to your vehicle as a result of hitting another object. Comprehensive includes coverage for such physical damages as fire, theft, vandalism, and animal collision.

It is important to discuss all of these options with your Texas insurance agent to help you decide which coverage types are best for you.