up button arrow
https://texasinsurance.org is a privately owned website that is not owned or operated by any government agency

What is Covered by Auto Insurance in Texas?

Key Points

  • Auto insurance in Texas usually follows the vehicle, not the driver. When someone borrows your car and is at fault for an accident, your liability coverage will cover them. Borrower's liability coverage may kick in if the damage exceeds your coverage limits.
  • In an at-fault accident, the liability insurance of the at-fault driver covers the costs.
  • Uninsured/underinsured coverage can kick in if the at-fault driver doesn't have enough liability coverage.
  • You can use your existing liability insurance when renting a car, and additional coverage can be purchased if needed.
  • Windshield replacement is covered under collision or comprehensive insurance.
  • Engine failure caused by a covered event is usually covered by auto insurance.
  • Personal belongings left in a stolen car are not covered by auto insurance; they may be covered by homeowners or renters insurance.

Does Texas Auto Insurance Cover the Driver or the Vehicle?

Auto insurance in Texas usually follows the vehicle, not the driver. Your auto insurance liability coverage, collision, and comprehensive coverage follow the car. The driver must have purchased the optional auto insurance coverage, that is, the medical payment, PIP to be covered personally.

When someone borrows your car and is at fault for a motor vehicle accident, your auto insurance liability coverage will cover them. However, if the damage exceeds your coverage limits, the borrower’s liability coverage may kick in as the secondary coverage after your liability coverage is exceeded. It is important to note that when you loan your friend your car, and they cause an accident, you will need to pay deductibles, and your premium rate may go up after the claim. Also, your medical payment and PIP coverages do not cover your friend who borrowed your car and caused an accident. Medical payment and PIP coverages protect only you.

However, there are instances where the car insurance follows the driver. According to the Texas Department of Insurance, when you or your family member drives a rental car, you will get liability coverage if your policy extends coverage to it. Your policy collision and comprehensive coverage will provide coverage for any damage caused to the rental car.

When you lend a friend your car, it may seem like a good idea; in the end, you may end up filing an auto insurance claim under your policy. When you borrow out your car, you also borrow out your insurance coverage. Consult with a state-issued licensed agent to learn about the risk of renting a car or driving a vehicle you do not own.

How Does Car Insurance Work When You Get Into an Accident in Texas?

When you get into an at-fault accident, you incur liabilities of the other vehicle’s occupants, including bodily injuries or property damage. However, if the accident was caused by another driver and your vehicle is damaged, or you sustain an injury, the auto liability insurance plan of the at-fault driver kicks in to cover the incurred costs.

Once an incident has been duly recorded, the at-fault party files a claim with their insurance provider. After filing the auto insurance claim, the insurance provider helps pay for the cost of taking care of the bodily injury and property damage.

It is important to note that there are instances where the driver is not carrying enough liability coverage to protect you. This is when your uninsured/underinsured insurance coverage kicks in to cover any medical bills you may have incurred.

Does Texas Car Insurance Cover Rental Cars?

Yes. Auto insurance covers rental cars or other transportation such as public buses or cab rides after a covered loss in Texas. For instance, when a damaged vehicle after a covered loss is under repairs, the rental reimbursement coverage serves the owner by paying for transportation expenses. Rental reimbursement coverage in Texas is an optional auto insurance coverage that helps drivers pay for transportation expenses such as a rental car or public transportation cab fare. It only covers the cost of rented vehicles, bus fares, or cab rides while a car is being repaired due to a covered loss. These covered losses are usually under the collision or comprehensive coverage.

Can I Use My Insurance When Renting a Car?

You can use your existing auto liability insurance coverage when renting a car. If your existing liability limits do not meet the minimum state requirements, where you plan to rent the car, you may usually purchase additional coverage from the rental place.

Consult with a state-licensed insurance agent for free to know more about rental cars coverage.

Does Texas Car Insurance Cover Repairs?

Yes, car insurance covers your vehicle's repair after a covered accident. If you are at fault in an accident that caused property damage to another person's car, auto liability insurance will cover the expenses of the repairs. Since auto liability insurance does not provide coverage to your vehicle, the optional auto insurance add-on, the comprehensive, and collision coverages will pay for the repairs of the car depending on the covered accident. When you are not the vehicle owner and you cause an accident, your non-owner insurance coverage will cover the liability of repairing the other person's car. Auto insurance also provides coverage for the repairs of parked vehicles as long as you have active parked insurance coverage.

Consult with a state-licensed insurance agent to learn more about the auto insurance coverages that will pay for your vehicle's repairs, whether you are at fault or not.

Does Texas Car Insurance Cover Windshield Replacement?

Yes, if your windshield is damaged due to a collision accident or something other than a collision like hail storms or animal collision, you can have it replaced under a collision or comprehensive insurance coverage. Also, if an at-fault accident causes damage to another person's windshield, your auto liability insurance coverage will pay for replacing the windshield. Non-owner insurance coverage also helps replace a damaged windshield if you cause an accident to another person's car when driving a vehicle that does not belong to you.

Does Texas Car Insurance Cover Engine Failure?

It depends on the cause of the engine failure. Typically, car insurance does not cover the repairs of engine failure caused by mechanical breakdown or wear and tear of the engine. However if the engine failure is caused by a collision, fire, flood, or other covered event under an auto insurance coverage, then coverages like auto liability, comprehensive insurance, collision, and non owner insurance will cover it. However, to claim this, the insured must be able to provide proof that the engine failure was caused by a covered event and not just wear and tear of the engine.

Does Texas Car Insurance Cover Theft of Personal Items?

No, auto insurance will not cover your personal belongings left in the stolen car. These personal items are usually covered by a homeowners or renters insurance policy, at the location where the vehicle is stored.

Texas Car Insurance

Texas Car Insurance 101

Do I Need Auto Insurance in Texas?

Auto Liability Insurance in Texas

Collision Auto Insurance in Texas

Comprehensive Auto Insurance in Texas

Gap Insurance in Texas

Non-Owner Car Insurance in Texas

Uninsured Car Insurance in Texas

Parked Car Insurance in Texas

RV Insurance in Texas

Temporary car insurance


Auto insurance shopping and quote comparison worksheet