Texas car insurance is a mandatory requirement throughout the Lone Star State and drivers are required to have a basic level of coverage when driving a motor vehicle. Texas operates using the familiar Tort system that has become instantly recognizable throughout most US states in recent years. Additionally, drivers in the state can forego basic Texas car insurance and become self-insured instead.

The basic level of Texas car insurance requires drivers to have 25/50/25 coverage. This effectively translates to $25,000 of bodily injury or death liability to a single person in the event of an ‘at fault’ accident or $50,000 of bodily injury or death liability to two or more persons. Additionally, the minimum level of Texas car insurance dictates that drivers carry $25,000 of property damage cover.

The 25/50/25 system supersedes the previous 20/40/15 version and came into effect in April 2008. IT is expected that the minimum level of Texas car insurance will rise again in January 2011 to a 30/60/25 system. This provision is currently in place following research from the Texas Department of Insurance, who continue to be concerned about drivers having insufficient coverage in the event of a serious accident.

The second option for those looking to purchase Texas car insurance is to become self-insured. This can be achieved by posting a financial bond and the choice is more suitable for those that have become uninsurable. Self-insurance is preferred by individuals with less-than-perfect driving histories, a record of multiple accidents or bad credit ratings.

Texas car insurance operates under the Texas Financial Responsibility Verification Program which allows police officers to immediately confirm whether a driver has sufficient insurance coverage or not.