Can you buy a used car from a dealer in Texas without proof of liability insurance?

UPDATED: Feb 10, 2011

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UPDATED: Feb 10, 2011Fact Checked

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Asked February 10, 2011

1 Answer

You may be able to purchase a vehicle without proof of liability insurance, but you will not be allowed to drive it off the lot until it is insured. In the state of Texas, you are required to have liability on your vehicles at all times, including vehicles that are stored or being reconditioned. The overcome this problem, many car lots have insurance companies nearby or even operating through the dealer to provide temporary or permanent liability coverage at the time of the sale.

If you own a registered vehicle in Texas, it must have liability insurance coverage regardless of the condition or usefulness of the vehicle you purchase. Other coverages, such as collision and comprehensive coverages, are not mandatory in the state and you can purchase a car without having them. Consider the value of the vehicle, and the risks it may face, and base your optional insurance coverages on the things that you need the most, such as towing reimbursement or roadside assistance coverages for older cars and GAP insurance coverage for vehicles that still have a balance owed. Optional coverage should be used to tailor the insurance to specific needs. It will raise the cost of your premiums, but the increase is negligible considering what not having those extra plans could cost you in an emergency.

Answered February 10, 2011 by Anonymous

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