How Long Do You Have to Get Insurance on a Used Car in Texas?
You need to get car insurance right away when you buy a used car. But if you already have car insurance, you may be able to use that coverage temporarily.
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According to Texas law, you can’t drive without car insurance in the Lone Star State. This means you’ll need to have car insurance for your new car right away — even if it’s a used car. But if you already have insurance, your new car will likely have coverage for about 20 days.
While not technically a grace period, using your existing coverage could help you meet Texas’ minimum insurance requirements.1
What is the grace period for car insurance in Texas?
Texas legally requires all drivers to meet the minimum insurance requirements. So, when you get a new car (even if it’s only new to you), you’ll need insurance immediately.
Texas doesn’t technically have a grace period for car insurance. But if you have an existing policy, you can use it to cover your new car temporarily — typically for about 20 days.
Your coverage and rate depend on whether your new car is a replacement for an old one or an additional vehicle, such as when adding a vehicle for a teen driver.
With a replacement car, your new car receives the same type of coverage as the car you replace. An additional car receives the same amount of coverage as the car on your policy with the highest level of coverage. Tell your insurance company about your new car as soon as possible.
When to add a financed vehicle
If you finance the vehicle, your lender will likely require full-coverage car insurance. You’ll generally need to show proof of coverage to your lender before you can take the car home.2
When to add a vehicle you paid cash for
If you pay cash when you buy your car, you’ll still need insurance to drive it. This goes for both dealer and private party sales. You’ll still need to purchase the legally required coverage.
Consequences of missing the grace period
If you fail to add a vehicle to your existing policy within the 20-day grace period, your car insurance company can choose to cancel your policy. Your coverage may also not be renewed due to a lapse in coverage. Let your insurer know about the new car as soon as you can.
Keep in mind that a cancellation results in the immediate termination of your policy and no chance of renewal. If you aren’t ready to purchase a long-term policy, consider a temporary policy instead.
Texas car insurance requirements
Lone Star State drivers are financially on the hook for any accidents they cause and must adhere to Texas auto insurance requirements. To help protect yourself and your insurer, you need to have a minimum of $30,000 in liability coverage for each injured person (up to a total of $60,000 per accident) and $25,000 for property damage liability per accident.
Texas requires a 30/60/25 ratio. But in many states, a 25/50/25 split is more common. Each state has different auto insurance requirements, so it’s always a good idea to brush up on state laws if you plan to move to a new state.3
Optional car insurance coverages in Texas
Alongside buying insurance to meet legal requirements, you can also consider enhancing your auto insurance policy with these optional coverage types:
You also have the option to purchase a higher liability limit that provides financial protection that surpasses the state requirements. If you aren’t sure which types of additional coverage you can benefit from, chat with an insurance agent about your options. Insurance agents can also help you find out what potential insurance discounts you can qualify for.
Penalties for driving without car insurance in Texas
Driving without proper car insurance coverage in Texas can result in a fine of up to $350.
You also risk your insurer canceling or refusing to renew the car policy if it discovers you didn’t add your new vehicle to your existing auto insurance policy.
How much car insurance costs in Texas
How much you spend on car insurance can depend on many factors. But drivers in the state of Texas spend an average of $124 per month for liability insurance and $218 for a full-coverage policy.
These rates are pretty on par with the national monthly averages of $103 for liability coverage and $182 for full coverage.
Drivers in neighboring states of New Mexico, Oklahoma, and Arkansas typically pay less for car insurance.
Texas car insurance costs by city
Where you live can influence the likelihood of filing an auto insurance claim, so your ZIP code plays a big role in determining your insurance premium. Extreme weather, local crime events, and traffic patterns can all make someone more or less likely to file a car insurance claim compared to drivers in other cities.
The following table gives you an idea of how car insurance costs can fluctuate across Texas.
Texas car insurance FAQs
To help you better understand your car insurance commitments as a Texas driver, read on for some more insight into the topic.
How long can you drive without insurance after buying a car in Texas?
There’s no grace period for driving without any form of car insurance in Texas. But there’s a grace period surrounding how long you have to update an old car insurance policy — about 20 days. Before hitting the road, always be ready to provide proof of insurance.
Is there a time limit to file an auto insurance claim in Texas?
How long you have to file an auto insurance claim can vary by insurer and policy terms. But it’s best to move swiftly when filing a claim to avoid running into issues and to make the claims process smoother.
Do insurance and registration need to match in Texas?
It’s always a good idea to double-check with your car insurance company if you have concerns about names not matching on a car’s registration and a driver’s insurance policy. Even if it’s not a legal requirement for these names to match, some car insurance companies may want to see matching names to insure you.
Which company has the cheapest car insurance in Texas?
On average, State Farm has the cheapest car insurance policies in Texas, with liability-only rates of $58 per month.
Is Texas a no-fault state?
No. Texas follows a fault-based system. This means that the driver at fault for the car accident is responsible for damages they cause.
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