Texas Insurance Coverage

Insurance in Texas is similar to many other places where the law is clear about the minimum coverage and liabilities. Under Texan law, no insurance company can deny you coverage based on your race, religion, color, gender, residence, disability, and country of origin.

The only exception to this is if the insurance company can show proof that providing insurance would cause a great risk to the company than the if the same insurance package were provided to other customers. Insurance companies are also allowed to quote higher rates for what they would assess as high risk customers and this would not constitute discrimination if the company can prove the basis for the higher rate.

There are the usual types of insurance: auto, home, health, and life insurance plans.

Texas Auto Insurance

Anyone who drives around Texas is required to be insured. Under the state laws, the minimum coverage is 30/60/25. If the costs of one accident exceed the minimum insurance, then the injured party can go after the owner of the car for the difference. In addition, the minimum 30/60/25 does not cover the cost for repairing the policy owner’s car, his medical treatments, or the cost of replacing a vehicle that has been totaled.  The vehicle’s owner must buy more insurance if he wants to cover these risks such as comprehensive, collision, or medical insurance. If you like see what we suggest for pursuing any Texas car accident claims.

If you fail to show proof of current insurance, you are penalized according to the number of offenses previously committed. For the first offense, you will be fined an amount not lower than $175 but not higher than $350.  The succeeding offenses will increase the fine to $1,000, suspension of license and cause your auto to be impounded. For accidents that lead to death or serious injuries, there is a 12 month jail term and/or $4,000 maximum fine. For driving without your valid driver’s license, you can get 180 days in jail and/or $2,000 in fines.

Quick Notes on Auto Insurance in Texas

  • Some companies will only cover the names of those listed in the policy. If a friend or visiting relative borrows the car and gets into an accident, any claim will not be approved.
  • Companies may add exclusions like racing and using the car for business
  • Your Texan auto insurance is valid in other states and in Canada

Here is a suggestion for comparing rates online.

Health Insurance Laws and Coverage

There are 3 common types of health insurance in Texas. They are the managed care, indemnity, and fee for service health plans.

The Managed Care – This plan provides you with a list of accredited hospitals, clinics, and doctors for all your routine tests and consultations. In many cases the rates and fees are lower if the insurance company has an agreement with the chosen network. This plan encourages preventive care.

The Indemnity Plan – With this plan, you can choose where to receive your treatment or consultation. You will have to upfront the payment and then request to be reimbursed by the insurance company. If the cost is higher than the insured amount, the difference will have to be shouldered by the policy holder.

Fee For Service Plan – The payment of insurance is based on a percentage of the cost, not necessarily the dollar value. This means the health plan is a shared cost although the insurance policy should state the percentages upfront and should not be lower than 50% after payment of deductible.

Under Texas law, all insurance and HMO claims must be paid promptly or a notification is issued explaining a denial of claim. If the insurance does not do this, they will be penalized. Texas also has a Health Pool for those who cannot afford to pay insurance premiums or were denied because of pre-existing medical conditions.

Homeowners Insurance: Tips for Home Coverage

Home insurance is one way to cover the cost of repairing or replacing your home and property. In Texas, the coverage for home insurance usually includes the house, items inside the house that may be stolen or damaged, outside structures like shed, garage, fences, the cost of loss of use, medical payments, and personal liabilities.

There are 2 common types of home insurance in Texas: the All-Risk and the Named Perils.

The All-Risk – This comprehensive coverage and covers all kinds of losses unless specifically excluded.

The Named Perils – This is a more specific and limited coverage plan which is cheaper but not always better.

The cost of home insurance will depend on several factors such as:

  • Age of home and other structures
  • Location
  • Condition of the property
  • Replacement cost
  • Materials used to build the house
  • Fire protection
  • Credit score
  • Insurance claims history

There are discounts given to senior citizens, alarms installed, automatic sprinkler, and for bundled plans, among others.

Life Insurance Plans for Texans

Life insurance is about taking care of your loved ones by ensuring they have enough funds to survive when you pass away. Life insurance can also be considered part of your gift of inheritance to your spouse, children or grandchildren.

The choice of life insurance would depend on how much you are willing to pay and for how long. There is no law obliging you to buy life insurance. The general rule for those who want it for their family is to buy as early as possible because the rates are lower. The older one is, the higher the chances of being rejected for life insurance since the risks are higher for the insurance company.

When you buy life insurance, you are required to state who the beneficiaries are. You can have more than one person although you must indicate the division of the insurance among the beneficiaries.

Life insurance is also a financial asset because you can always turn to it for cash or convert the entire policy to cash to help you with daily expenses or major purchases.

Texan Insurance Resources

Here is a shortlist of some of the top insurance companies in Texas offering one to all four common types of insurance. You can use this list to compile quotations so it becomes easier to compare figures and cuts down on the time needed to process your insurance needs.

  1. State Farm Lloyds

17301 Preston Road
Dallas TX 75252-5727

Office Number: (214) 732-5000

Toll Free Number: (800) 252- 1932


  1. Texas Farmers Insurance Company

P O Box 149044
Austin TX 78714

15700 Long Vista Drive P O Box 149044
Austin, TX 78714

Office Number: (512) 233-3000

Toll Free Number: (800) 225-0011


  1. United Services Automobile Association

9800 Fredericksburg Road
San Antonio, TX 78288

Office Number: 210-531-USAA (8722)

Toll Free Number: 800-531-USAA

  1. Safeco Insurance Company of Indiana

Central Region
1600 N. Collins Blvd.
Richardson, TX 75080-3666
Office Number: 972-808-4000
Toll Free Number: 800-472-5357


  1. Nationwide Property and Casualty Insurance Company

One Nationwide Plz

Columbus, OH 43215-2220

Office Number: (614) 249 7111


  1. Texas Farm Bureau Mutual Insurance Company

7420 Fish Pond Road
Waco, TX 76710
Report a Claim: 1.800.266.5458
Fraud Hotline: 1.800.711.0394


  1. Oak Brook County Mutual Insurance Co

1505 Lyndon B Johnson Fwy

Dallas,TX 75234

Office Number: (972) 488-6000

  1. Universal North America Insurance Company

9901 IH 10 W
Suite 980
San Antonio, TX 78230

Office Number: 866-338 4262


  1. Sentinel Insurance Company Ltd.

One Hartford Plaza T17 81

Hartford CT 06155

Office Number: (860) 547 4497


  1. Wellington Insurance Company

6801 Calmont Avenue, Fort Worth, TX 76116
P. O. Box 230, Fort Worth, TX 76101

Office Number: (800) 880 0475


  1. Central Mutual Insurance Company

800 South Washington Street
Van Wert, Ohio 45891

Phone: 419-238-1010


  1. American- Amicable Life Insurance Company of Texas

425 Austin Ave, Waco, TX 76701

Office Phone: (254) 297 2777


  1. Texan Insurance

6161 Savoy Dr. Suite 960

Houston, Texas 77036

Office Number: (866) 660 6800