Texas stands as the second largest state throughout the US in terms of both area and population density. The Lone Star State is home to approximately 24.7 million residents and throughout 2009, Texas auto insurance cost an average of $1,809. In spite of the sizeable population and the increasing number of vehicles on the road throughout Texas, this actually represents a figure of just $74 above the national average.
Texas auto insurance is mandatory throughout the state and legislation operates at two different levels. Firstly, residents of Texas can purchase the typical minimum level of 25/50/25 insurance which is designed to cover the following:
- $25,000 worth of cover for bodily injury or death liability to one person in an accident
- $55,000 worth of cover for bodily injury or death liability to two or more persons in an accident
- $25,000 worth of cover for damage or destruction to property in the event of an accident
Although 25/50/25 Texas auto insurance is the most familiar form of coverage, drivers also have the option of posting a financial bond to become self-insured. This particular form of Texas auto insurance is applicable to those who feel that they may be uninsurable. Typically, this would include drivers with bad credit ratings, a history of multiple accidents and claims or a poor driving history with multiple convictions.
The 25/50/25 system replaced the previous 20/40/15 level of protection as recently as 2008 but still only represents a minimum level of Texas auto insurance coverage. Drivers are advised to increase their insurance levels wherever possible and to also consider add-ons such as uninsured driver coverage and personal injury protection.