In order to legally drive a vehicle in Texas, vehicle owners must have an active personal auto insurance policy.
Self-insurance, which can bypass a driver having to buy a policy from a car insurance company, is technically permissible in the state but only in certain circumstances.
The easiest way for the average driver to protect themselves and everyone else on the road is by purchasing an insurance policy from a personal car insurance agency, as this will ensure they have the right type and amount of coverage required by law and be most protective for them.
What Is Self-Insurance?
Self-insurance is the process of putting aside money so that it is available in case of an accident that causes damage to another person’s property or results in an injury or some other form of liability.
Drivers can legally insure themselves if they prove they can be financially responsible for any damage caused by having the minimum liability insurance amount put aside to pay for any such damage or injuries.
How Do You Get Self-Insurance?
This can be done by obtaining a deposit of cash/security with the state comptroller proving that the driver has at least $55,000 in cash or a CD available to cover any damage or injuries caused, a surety bond from two other people willing to cover the state minimum insurance amounts of $30,000/$60,000 for bodily injury and $25,000 for property damage, or a deposit of cash or cashier’s check with the county judge.
The final option of deposit with the county judge is least accessible as these days, most offices of county judges are unwilling to accept large deposits like that when most people can simply purchase a personal auto insurance policy through an appropriate agency.
Also, businesses may self-insure by putting aside money into an insurance account and receiving a Certificate of Self-Insurance, but this option is only available for the commercial coverage of 26 or more vehicles by the same person.
Self-Insurance Really Isn't Advisable
Overall, although there are a few options available for individuals to legally self-insure their own vehicles as a last resort, purchasing coverage from a personal car insurance company is the appropriate and safest option for everyone involved.
A tailored personal auto insurance policy ensures that every driver has the minimum protection available in case of an accident without the need to hold money in security, get surety bonds, or otherwise.
There are local personal car insurance agencies everywhere with great products and competitive rates to help every driver stay legal and protected with the right car insurance.