Most auto liability policies in Texas will pay if the insured Texas driver is involved in an accident in other states or Canada.
However, states have different requirements for the amount of coverage an auto liability insurance policy must pay. For example, state insurance regulations in Utah require more auto liability coverage for bodily injuries than Texas regulations.
Fortunately, most insurance companies across the U.S. and Canada have reciprocity agreements with each other. So if another state requires more auto insurance, your Texas insurance company will usually raise its level of coverage.
Mexico doesn’t recognize U.S. policies like Canada does. So unless you purchased special coverage, your insurance probably won’t cover accidents you are involved in while driving in Mexico.
If you operate a motor vehicle in Texas and will be driving in Mexico, you should obtain separate auto insurance. Most major auto insurance companies in Texas offer polices that provide liability coverage for tourists while driving in Mexico.
An out-of-state driver driving in Texas must have insurance coverage that meets the Texas minimum levels of “financial responsibility” for their car. Texas requires more coverage than many other states.
Transportation Code section 601.072 of the Texas Motor Vehicle Safety Responsibility Act requires all owners and operators of motor vehicles in Texas to carry, as a minimum:
Under insurance company reciprocity agreements, most out-of-state auto insurers will raise their rate of coverage if one of their insured drivers is involved in an auto accident in Texas.
But these minimums may not be enough to pay for another driver’s vehicle damage and bodily injury. That’s why the Texas Department of Insurance advises drivers to obtain more insurance than the minimum. That’s true for out-of-state drivers in Texas as well.
And even if you obtain extra auto liability insurance coverage, it will not pay to repair or replace your car or to treat your injuries. This includes other types of auto insurance coverage to help pay your additional expenses:
Texas is one of the most dangerous states to drive. If you drive in Texas, consider obtaining additional auto insurance coverage.
Texas is an at-fault state, which means the at-fault driver is the one whose insurer pays for damages and injuries. If the accident happens in Texas, Texas law is the law that is followed.
Tell your insurer and get the out-of-state-driver’s insurer information. You’ll file the claim against the out-of-state-driver’s insurer.
Sometimes, the out-of-state-driver will try to “skip out” on paying up. When this happens, the next step is taking legal action. There are a lot of complex issues in locating in suing an out-of-state-driver. Contact Justinian & Associates for a free consultation.