Does car insurance in Texas follow the car or the driver? The simple answer is — it depends on the type of coverage you have. In this post, we’ll explain how Texas insurance works and what you should know before driving someone else’s car, especially if you’re using it for work.
Liability Insurance, Comprehensive and Collision Coverage and PIP Explained (Texas Auto Insurance Options)
Liability Insurance
In Texas, all drivers must have liability insurance. This coverage pays for someone else’s medical bills and property damage if you cause an accident. In this way, liability insurance follows the driver, not the car.
For example, if your spouse or children are listed on your policy, liability insurance coverage also protects them when they drive another person’s vehicle.
Comprehensive and Collision Coverage
At the same time, optional policies, such as comprehensive and collision coverage, follow the vehicle. These pay for damage to your own car, no matter who is driving. It covers your car even if the vehicle is parked.
Comprehensive and collision coverage covers your car no matter who is driving
Comprehensive insurance can even apply if your car is stolen, vandalized, or affected by a natural disaster.
Personal Injury Protection
You can also purchase Personal Injury Protection (PIP) or medical payments insurance, both of which follow the driver. If you buy an uninsured/underinsured motorist policy, it follows the vehicle. The same applies to policies that cover rental cars, towing, and repair costs.
In Texas, liability insurance follows the driver — but collision and comprehensive coverage follow the car.
What Happens When Someone Else Has an Accident in Your Car
If your spouse or child is on your car insurance and they have an accident, your insurance can help pay for injuries and damage. But if you listed someone on your policy as excluded, your insurance won’t cover them. If that person causes a crash, they will have to pay for the damage themselves.
Stolen Car Accidents – Who’s Liable?
If someone steals your vehicle and causes an accident, the other drivers will be able to pursue them separately. The victims can recover their costs by filing a claim against the thief’s liability insurance or through a personal injury lawsuit. You cannot be held liable if you didn’t give permission, and your insurer won’t punish you with higher rates.
Borrowed Car Accidents
If a friend borrows your car and gets in an accident, their car insurance usually pays for the damage and injuries first. If their insurance doesn’t cover everything, your insurance might help pay the rest. Your own coverage can also help fix your car if it’s damaged.
If someone else has an accident in your car, your insurance may still cover it — depending on who was driving and your policy terms.
Liability for Accidents in a Borrowed Car for Work
Bigger problems can happen if you use someone else’s car for work, like deliveries or rideshare driving. In those cases, personal insurance may not apply, and the company might refuse to cover the accident. You could also run into trouble if the car’s owner let their insurance lapse without telling you. That can make it difficult to figure out who’s responsible for the damages.
Purchase Additional Insurance Coverage When Possible
The Texas Department of Transportation (TxDOT) says a crash happens about every 57 seconds in Texas. In 2024, there were almost 15,000 serious injury crashes. Since medical and repair costs keep rising, having more car insurance helps protect you from paying too much after an accident.
In Texas, drivers must have at least $30,000 in insurance to cover injuries to one person, $60,000 for two or more people, and $25,000 for property damage. There’s no set amount for comprehensive or collision coverage, but most insurance companies have their own rules for how much they offer.
We recommend buying policies larger than the minimums if you drive frequently in high-traffic areas, such as:
- Bodily injury: Purchase between $50,000 and $100,000 per person to pay for serious or catastrophic injuries.
- Property damage: Buy between $50,000 and $100,000 to cover repairs to larger trucks and luxury cars.
- PIP: Your health insurance covers most medical bills, but PIP helps pay your deductible and lost wages. You can buy between $2,500 and $10,000 in coverage.
- Uninsured/Underinsured motorist: If someone without enough insurance hits you, this helps pay for your car repairs and medical bills. Many people choose $30,000 to $60,000 in coverage.
Always Be Sure Before Driving Another Vehicle
Many people think their insurance automatically covers them when they borrow someone else’s car. Most of the time, that’s true. Your liability insurance will usually apply if there’s an accident. But if you drive another person’s car often, the insurance company might question why you aren’t listed on their policy and could delay the claim.
Before driving another vehicle, even a rental, call your insurance company to confirm what’s covered. Also, ask the car’s owner if their insurance is current and the car is safe to drive. Taking these steps can help you avoid unexpected problems if an accident happens.