Types of Losses Your Auto Insurance Should Cover (2026 Texas)
The 6 types of auto insurance coverage in Texas
1) Liability (bodily injury + property damage) – required by Texas law. 2) Collision – pays for your car in an accident. 3) Comprehensive – pays for theft, weather, animal strikes. 4) Uninsured/underinsured motorist – pays you when the other driver is at fault but has no/low coverage. 5) Personal injury protection (PIP) – medical bills for you/passengers. 6) Gap insurance – pays loan balance over car value if totaled.
Texas minimum liability (30/60/25) explained
Texas requires $30,000 per injured person, $60,000 total per accident for injuries, and $25,000 for property damage. This is the legal minimum. Most Texas drivers need 100/300/100 (or higher) to protect their assets. The savings on minimums ($200-400/year) are not worth the risk.
Collision vs comprehensive – when you need each
Collision pays for damage to YOUR car when you hit something (other car, tree, guardrail). Comprehensive pays for damage to YOUR car from things OUTSIDE your control (theft, hail, flood, deer, vandalism). You need collision if you are financing or leasing. You can usually drop collision on cars worth less than $3,000.
Uninsured motorist coverage: 1 in 5 Texas drivers has none
Texas has one of the highest uninsured rates in the US (20%+ per the Texas Department of Insurance 2025 report). Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance. UM is cheap ($50-100/year) and one of the most cost-effective coverages you can buy.
Do you need Personal Injury Protection (PIP) in Texas?
Texas auto policies default to “named driver” PIP, but you can opt out in writing. PIP pays medical bills, lost wages, and funeral costs for you and your passengers. Texas minimum PIP is $2,500, but most drivers should get $5,000-$10,000. Costs $50-150/year. We recommend keeping it – your health insurance may have a high deductible.
Gap insurance: who needs it
If you are financing a new car and your loan balance is higher than the car value (depreciation), gap insurance pays the difference if the car is totaled. Required for most leases. Worth it for the first 3 years of any car loan. Costs $200-300/year. Skip it if you own your car outright or made a 20%+ down payment.
Texas-specific: rideshare and delivery coverage
If you drive for Uber, Lyft, DoorDash, or Amazon Flex in Texas, your personal auto policy does NOT cover you while you are working. You need either a rideshare endorsement ($100-200/year added to your personal policy) or a commercial auto policy. Driving without it is one of the biggest insurance mistakes Texas gig workers make.
All Star Insurance Agency has been serving Killeen and Central Texas since 2007. Free comparison quotes from 5+ carriers in 10 minutes.
Call (254) 690-9400Types of Losses Your Auto Insurance Should Cover (2026 Texas)
The 6 types of auto insurance coverage in Texas
1) Liability (bodily injury + property damage) – required by Texas law. 2) Collision – pays for your car in an accident. 3) Comprehensive – pays for theft, weather, animal strikes. 4) Uninsured/underinsured motorist – pays you when the other driver is at fault but has no/low coverage. 5) Personal injury protection (PIP) – medical bills for you/passengers. 6) Gap insurance – pays loan balance over car value if totaled.
Texas minimum liability (30/60/25) explained
Texas requires $30,000 per injured person, $60,000 total per accident for injuries, and $25,000 for property damage. This is the legal minimum. Most Texas drivers need 100/300/100 (or higher) to protect their assets. The savings on minimums ($200-400/year) are not worth the risk.
Collision vs comprehensive – when you need each
Collision pays for damage to YOUR car when you hit something (other car, tree, guardrail). Comprehensive pays for damage to YOUR car from things OUTSIDE your control (theft, hail, flood, deer, vandalism). You need collision if you are financing or leasing. You can usually drop collision on cars worth less than $3,000.
Uninsured motorist coverage: 1 in 5 Texas drivers has none
Texas has one of the highest uninsured rates in the US (20%+ per the Texas Department of Insurance 2025 report). Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance. UM is cheap ($50-100/year) and one of the most cost-effective coverages you can buy.
Do you need Personal Injury Protection (PIP) in Texas?
Texas auto policies default to “named driver” PIP, but you can opt out in writing. PIP pays medical bills, lost wages, and funeral costs for you and your passengers. Texas minimum PIP is $2,500, but most drivers should get $5,000-$10,000. Costs $50-150/year. We recommend keeping it – your health insurance may have a high deductible.
Gap insurance: who needs it
If you are financing a new car and your loan balance is higher than the car value (depreciation), gap insurance pays the difference if the car is totaled. Required for most leases. Worth it for the first 3 years of any car loan. Costs $200-300/year. Skip it if you own your car outright or made a 20%+ down payment.
Texas-specific: rideshare and delivery coverage
If you drive for Uber, Lyft, DoorDash, or Amazon Flex in Texas, your personal auto policy does NOT cover you while you are working. You need either a rideshare endorsement ($100-200/year added to your personal policy) or a commercial auto policy. Driving without it is one of the biggest insurance mistakes Texas gig workers make.
All Star Insurance Agency has been serving Killeen and Central Texas since 2007. Free comparison quotes from 5+ carriers in 10 minutes.
Call (254) 690-9400