The Insurance Rules in Texas
Residents' access to insurance is governed by particular rules and regulations in Texas. Knowing the state's insurance regulations will help you stay compliant and steer clear of expensive blunders, regardless of whether you own a home, a car, or a business.
Auto Insurance Requirements
In Texas, car insurance is required for all drivers. The law requires liability coverage to pay for damages or injuries you cause in an accident. The minimum limits are often referred to as 30/60/25, which means:
- $30,000 for injuries per person
- $60,000 for injuries per accident
- $25,000 for property damage
Drivers must always carry proof of insurance. Driving without insurance can lead license suspension, vehicle impoundment, and fines.
Homeowners Insurance
Homeowners insurance is not required by law in Texas, but most mortgage companies do. Most policies cover damage from fire, theft, and weather, but some risks, like floods or earthquakes, need separate coverage. Because hurricanes and storms can happen in this state, many people also get windstorm and flood insurance to protect their homes.
Health Insurance
Texas follows federal guidelines under the Affordable Care Act (ACA), but the state does not mandate residents to carry health insurance. However, going without coverage can leave individuals financially vulnerable. Many Texans obtain coverage through employers, private plans, or government programs like Medicaid or CHIP.
Business Insurance
Texas is unique in that it does not require most employers to carry workers’ compensation insurance. However, businesses that choose not to provide it may face lawsuits if employees are injured on the job. Commercial auto insurance, liability coverage, and property insurance are also common requirements for businesses, depending on industry regulations.
Insurance Regulation in Texas
The Texas Department of Insurance oversees insurance companies and enforces state laws. TDI ensures insurers remain financially stable, treat customers fairly, and follow policy requirements. Policyholders can file complaints with TDI if they believe their insurer acted unfairly or in bad faith.
Why Knowing the Rules Matters
If Texans are aware of the insurance regulations, they can safeguard their possessions, avoid fines, and get the coverage they need. Following these standards is crucial for financial security, whether it's driving lawfully, getting a mortgage, or preserving a business.
