New wheels. Texas roads. Let's get you covered.
Found a car you love? Before you sign the paperwork and drive off the lot, let's talk insurance. From Texas coverage requirements and loan conditions to deductibles, GAP protection and getting the keys, here's what to know when buying a car in Texas.
Love the car.
Know the coverage.
Buying a car is exciting. Finding out your insurance costs more than expected? Not so much.
Whether you're trading in your current ride, adding a second car or buying your very first vehicle, getting insurance sorted before pickup can save you a lot of headaches.
Get the insurance quote first.
Two cars with similar price tags can have very different insurance costs. Before choosing your next vehicle, compare quotes for the actual models you're considering.
Make and model matter.
Repair costs, safety features, theft rates and the vehicle's value can affect insurance premiums.
Who's behind the wheel?
Your driving history, household drivers and other rating factors can influence the price.
Where will you keep it?
Your garaging address, commute and local risks may affect available coverage and rates.
Compare the same protection.
Check that each quote uses comparable liability limits, deductibles and optional coverages.
Still deciding between two cars?
Ask for an insurance quote on both. The difference in monthly premiums might change which car fits your overall budget.
Let's talk
30/60/25.
Texas requires most drivers to demonstrate financial responsibility. The most common way is by carrying auto liability insurance. The state's minimum liability limits are commonly called 30/60/25.
$30,000 for bodily injury to one person
The maximum amount the required minimum policy pays for covered bodily injuries to any one person in an accident.
$60,000 for bodily injury per accident
The maximum combined bodily injury payment under the required minimum policy for one accident.
$25,000 for property damage per accident
The required minimum limit for covered damage you cause to other people's property in one accident.
These are minimums, not a guarantee that every accident will be fully covered. A serious collision can cost much more, so consider whether higher liability limits make sense for your finances.
What doesn't liability insurance cover?
Liability coverage generally doesn't pay to repair your own car after an accident you cause. That's where collision coverage may come in.
TEXAS DEPARTMENT OF INSURANCE: AUTO COVERAGE ↗What coverage does your new car need?
Your ideal policy depends on the vehicle, your finances, how you drive and whether you're financing the purchase.
For accidents involving your car.
Helps pay for covered collision damage to your vehicle, subject to your deductible.
For more than collisions.
Can cover eligible losses from theft, hail, falling objects and other covered events. Flood damage is typically handled under this coverage.
When the other driver isn't covered.
May help when an at-fault driver has no insurance or insufficient limits, subject to policy terms.
Help with certain injury expenses.
PIP can help with covered medical costs and certain other losses, regardless of fault, up to the policy limit.
Need a temporary ride?
May help pay for a rental car while your vehicle is being repaired after a qualifying covered loss.
For those unexpected stops.
Depending on the plan, services may include towing, jump-starts and help with a flat tire.
Texas offers PIP and uninsured motorist coverage.
Texas insurers generally must include or offer these protections under applicable rules unless the policyholder rejects them in writing. Review the options before signing.
Your lender has a say, too.
If you're financing or leasing, the company with a financial interest in your car will usually require more than Texas minimum liability coverage.
Usually required by lenders.
These coverages help protect the vehicle securing your loan. Your financing agreement may specify deductible limits and other conditions.
What if you owe more than it's worth?
GAP protection may help address the difference between your outstanding loan or lease balance and the vehicle's covered total-loss value, subject to its terms.
Choose what you can afford.
Higher deductibles may lower premiums, but increase what you'll pay after a covered claim.
Get the paperwork right.
Your insurer may need the lender or leasing company's information to list its interest on your policy.
GAP isn't the same as auto insurance.
GAP products can have exclusions, maximum benefits and other restrictions. Ask whether you're buying a waiver or an insurance product, what it costs and whether you already have similar protection.
Trading in? Adding another car?
If you already have auto insurance, you may have some automatic coverage for a newly acquired vehicle. But the details depend on your policy.
One out. One in.
Your policy may temporarily cover a replacement vehicle under specific conditions. Reporting deadlines and available coverages vary.
Keeping both?
Automatic coverage for an additional vehicle can work differently from replacement coverage. Check your policy before driving it.
No existing policy?
Arrange an active insurance policy before taking your vehicle onto the road.
Don't cancel too early.
Coordinate the sale, title transfer and insurance change so you don't create an unintended gap in coverage.
Don't assume there's a grace period.
Some policies offer automatic coverage for newly acquired vehicles, but the conditions and notification deadlines vary. Call your insurer before pickup and confirm the new vehicle's effective coverage in writing.
Before you drive off the lot.
You've chosen the car. The paperwork is ready. Here's your last-minute insurance checklist before heading home.
The vehicle identification number helps ensure the exact car is listed on your policy.
Make sure coverage is active before you take possession and drive away.
If applicable, confirm the correct lienholder or leasing company appears on your insurance.
Review liability limits, comprehensive and collision coverage, and any required endorsements.
Your dealership may request proof before releasing the vehicle. Keep your insurance information accessible.
And don't forget the title.
Texas dealers commonly handle title and registration. If you're buying privately, you'll generally need to complete the required title application through your county tax office within 30 days.
TEXAS DMV: BUYING A VEHICLE ↗New car. A few good habits.
Getting insured is just the beginning. Keep your coverage up to date as your driving needs change.
Check the declarations page.
Confirm your vehicle, drivers, garaging address, limits and deductibles are correct.
See what's available.
You may qualify for multi-car, bundled-policy, safe-driver or other insurer discounts.
Stay organized.
Save your purchase documents, financing agreement, insurance records and maintenance receipts.
Tell your insurer.
Moving, changing your commute, adding a driver or using your car for business may affect coverage.
Texas weather is worth thinking about.
Hail, flooding and severe storms can cause expensive damage. Review comprehensive coverage and know your deductible before storm season.
Oh yeah.
Insurance.
A new car is a good reason to review your entire auto policy. The cheapest quote isn't always the right fit if it leaves out protection you need.
Compare more than the premium.
Look at liability limits, deductibles, exclusions, optional coverages and the claims experience you're signing up for.
Consider your financial exposure.
Higher liability limits and, where appropriate, umbrella insurance may offer additional protection beyond the state minimum.
Get the timing right.
Your new car should have appropriate coverage in effect before you drive it home. Avoid relying on assumptions about temporary coverage.
Hey Charley is independent, so we can help compare available options across multiple insurance carriers instead of trying to fit everyone into the same box.
EXPLORE TEXAS AUTO INSURANCE →Found your next car?
Let's get it covered.
Buying, financing, leasing or trading in? Let Charley take a look at your insurance options before you drive away.
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