Make Sure You're Driving Legally

When driving a car in Houston, you will want to have auto insurance. Although you may be a safe driver, you never know what the driver next to you is about to do. You also never know when weather conditions or road obstructions can lead to an accident. This is why Texas requires that all drivers in the state prove financial responsibility on the road. Most people in Houston do this by purchasing liability insurance.

Liability Requirements in Houston

If you're going to drive in Houston, or anywhere in the state of Texas, you are going to need to purchase liability insurance. You will need $25,000 in bodily injury coverage in case you get into an accident and one person is injured, $50,000 in bodily injury coverage in case more than one person is injured in an accident, and $25,000 in property damage coverage. You are welcome to purchase more. If you own a home or have assets, you will probably want to purchase more. If you get into an accident and someone is seriously injured, you can easily exceed the minimum bodily injury requirements. Total a new SUV, and it may cost $40,000 or more to replace. If you have assets, you might be sued to cover the difference.

Provide Proof of Insurance

In Houston, you will need to provide proof of insurance if you ever get into an accident or get stopped by a law enforcement officer. Proof of insurance will also be needed when you want to register your vehicle or get a driver's license. Texas has an electronic insurance verification system that state insurance companies register with. If you cancel your insurance, you may get a notification in the mail requesting that you send in proof of insurance. If you don't respond to their requests, you might find out that your driver's license and car registration are suspended. If you get a second suspension for lack of insurance, your car could be impounded.

Other Coverage You May Want

In addition to liability coverage, you may want to purchase other types of insurance coverage in case you are in an accident. If you have a car loan, your lender might require it. Collision coverage would pay for damages occurring to your vehicle if you collide with another vehicle, tree, or road obstruction. Comprehensive coverage will kick in if your car is vandalized, destroyed in a hurricane, has a tree fall on it, or is otherwise damaged when you are not driving it. If you have a car loan and will be upside down in payments for a while, you may want to purchase GAP insurance. Although your auto dealer might offer it, you can probably get it for less if you purchase it from your normal auto insurance company.