Do I need Car Insurance in Grapevine, TX?

If you want to be able to register your vehicle and drive it on the roads in Grapevine, TX, you need to have car insurance. Unless you own a car that is never driven and has been sitting in your barn for the last 10 years, you almost certainly will be breaking Texas law if you operate a vehicle without at least the minimum amount required by the state.

You must carry basic auto insurance coverage for liability in the amount of 30/60/25 as mandated by the state of Texas. The first two numbers, are a shorthand way of saying you have the coverage for bodily injury you/your car may cause to one person in a single accident. The second figure of $60,000 is the maximum amount your car insurance company will pay out for all people injured in an accident. The third figure, $25,000, covers damage to the other person’s car or other property.

When you finance a car, the terms of the loan agreement will usually state that you need to carry additional insurance above the amount required by the state. Your lender wants you to carry comprehensive and collision coverage to protect the value of the car they are financing.

When you finish making the last payment on your car note and get the title, you are free to reduce your coverage amount back to Texas state minimum requirements. However, that may or may not be a good idea.

If you bought a brand new car and paid it off in three years, it will still have a relatively high value. You might want to keep your collision and comprehensive so your asset will be protected in case you get into an accident or it is stolen. If you paid off your car 10-years ago, and now it only has a fair market value of $500, paying an extra premium may not be a wise financial decision.

Before you decide to drop or cancel any auto insurance policy, give it some thought. Make sure you have the right reasons for taking such an action.