National Association of Real Estate Editors member
Bylines include Forbes, Bankrate, and CBS News
Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Updated September 6, 2024 | Reading time: 4 minutes
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You have many ways to buy a used car: You can buy in cash from a private seller, finance one from a dealership, or even trade in your old car, in some cases.
Regardless of how you buy a used car, you’ll need to insure it — and quickly. Texas state law requires you to carry a certain amount of liability insurance on any vehicle that you drive or park on state roads.
Learn more about comparing quotes and how to find insurance for a used car in the Lone Star State.
How long you have to get insurance on a used car in Texas
If you already have a car insurance policy in place, your existing policy will automatically cover the used car you purchase for about 20 days. You’ll need to contact your insurance company and officially add the vehicle before that period expires.
If the vehicle you’re buying is replacing your current car, it’ll get the same coverage as your current car. If it’s an additional car, it’ll get the same coverage as the most comprehensively covered car under your policy.[1]
If you don’t already have a car insurance policy, you’ll need to purchase the minimum amount of liability insurance required by the state of Texas before you can drive the vehicle home. If you’re financing the used car, your lender will probably require you to have a full-coverage policy.
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How long you have to get insurance if you finance a used car
Your lender wants to ensure that its investment is protected, so it’ll probably require you to have full coverage on your pre-owned vehicle. A full-coverage policy includes the minimum amount of liability insurance that Texas requires, as well as collision and comprehensive coverage. You’ll need this coverage before you can drive the car home, if your lender requires it.
If you don’t already have a full-coverage policy in place, here’s what to do to ensure you can take your vehicle home after you buy it:
Log into the app of your existing car insurance company. You should be able to pull up a proof of insurance card or, depending on your insurer, add the new vehicle onto the policy directly.
Purchase temporary car insurance online. Some companies offer short-term insurance coverage that you can use until you can get a full-coverage policy in place.
Apply for a full-coverage policy online. Some car insurance companies may allow you to apply for a policy and get instant coverage online. You can also call your insurance agent, as they may be able to get you coverage quickly over the phone.
Good to Know
Some car dealerships offer insurance coverage, though it may not be as affordable as a policy you’d shop for yourself.[2]
How to buy car insurance for a used vehicle in Texas
You’ll need an auto insurance policy before you can drive your used car or even register it with the state of Texas.[3]
To do this, you should:
Gather the right information. You’ll need your car’s make, model, and year, as well as its VIN and information on any safety or anti-theft devices installed in it.
Know how much coverage you want. You’ll need the minimum required by Texas law, but you may want additional coverages, too. It’s a good idea to have an idea of what deductible and coverage limits you want as well.
Compare insurers. You should consider things like customer service, rates, discounts, claim-filing process, and more. Premiums can vary widely by insurance company.
Buy the policy. Finally, you’ll pay for the policy and get proof of insurance. You may be able to get a discount if you pay for your policy in full.
Minimum car insurance requirements in Texas
Every U.S. state except New Hampshire requires drivers to carry a minimum amount of liability insurance. This covers other peoples’ injuries, medical bills, and property damage if you cause an accident. But it won’t cover your injuries or vehicle damage.
Here are the minimum coverages you’ll need:
Personal injury liability: $30,000 per person and $60,000 per accident
Property damage liability: $25,000
All Texas auto policies also include personal injury protection (PIP) coverage. You’ll need to tell your insurance company in writing if you don’t want this coverage.
Optional insurance coverages for a used car in Texas
If you want to be fully protected in the event of an accident, you may want additional coverage on top of the minimum liability coverage that Texas requires.
Here are some optional coverages you may want to consider:
Comprehensive coverage
Comprehensive insurance covers non-collision incidents, such as fires, wind, earthquakes, flooding, or theft.
Collision coverage
Collision insurance covers damage to your car if you’re in an accident with another vehicle or object. It covers pothole damage, too.
Gap coverage
Gap insurance is something to consider if you’re financing your car. It covers the difference between your car’s value and your loan balance if you total the vehicle.
Accident forgiveness coverage
Accident forgiveness coverage means the insurer won’t factor an accident into your future premiums. This might be a good idea if you have a teen driver on your policy, for example.
Roadside assistance coverage
Roadside assistance coverage will kick in if your car breaks down. It covers towing, tire changes, jump-starting your vehicle, lockout service, and more.
Consequences of driving without insurance in Texas
Driving your car without insurance is illegal in the state of Texas. You can be fined or face driver’s license and registration suspension. In Harris County, for example, the fine is between $175 and $1,000, depending on how many times it happens. It can also come with a misdemeanor or felony charge.
Not having car insurance can also make it harder — and more expensive — to get coverage in the future.
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Insurance on a used car in Texas FAQs
You’ll need car insurance on a used vehicle before you can drive it in the state of Texas. Learn more below.
Can you drive a used car without insurance in Texas?
No. You can’t drive a car in Texas without at least the minimum amount of liability coverage — $30,000 per person and $60,000 per accident in bodily injury liability and $25,000 in property damage liability.
What’s the grace period to buy insurance for a used car in Texas?
If you have existing car insurance, it’ll automatically cover the newly purchased car for about 20 days. You’ll need to notify your insurance company that you’ve bought a new vehicle before that point.
How long do you have to register a used car after buying it in Texas?
You have 30 days from the sale date to register your car in the state of Texas.[4]
Do you need insurance to buy a used car?
Yes. You need insurance to drive the car off the lot after you purchase it. If you’re financing the vehicle, the lender may also require certain insurance coverages before you can purchase it.
Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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