The 5 Most Common Mistakes When Getting Car Insurance

If you're a Latino immigrant living in Texas, navigating the U.S. auto insurance system can be confusing, and it's easy to make mistakes.

Whether you have a foreign license or are undocumented, knowing what to avoid can save you money and legal trouble. Be sure to compare auto insurance quotes online right now and see if you qualify for coverage even without a U.S. license.

Mistakes to Avoid When Buying Car Insurance

Many migrants assume the process works the same as in their home countries, but in Texas (and in U.S. states in general), there are special rules and difficulties.

Below are key mistakes to watch out for:

• Texas law requires drivers to demonstrate financial responsibility, usually through liability insurance, if they cause injuries or property damage.
• Failure to properly insure your vehicle can result in fines, license plate suspension, or worse if you are involved in an accident.

The 5 Errors You Should Recognize and Avoid

Here are the common mistakes, numbered for clarity:

1. Assuming your foreign driving history will count automatically
   Many migrants believe their driving record from Colombia, Venezuela, or México will transfer seamlessly—but U.S. insurers often can’t access or verify foreign records. That leads them to treat you like a new or high-risk driver, raising premiums.
   → Ask insurers whether they will accept your home country record and how it affects your rate.
2. Buying the minimum liability without additional coverages
   While Texas law mandates liability coverage, it doesn’t force you to buy collision, comprehensive, or uninsured motorist coverage. Migrants from Ecuador, Perú, or Argentina sometimes assume minimum is enough—but if your car is stolen or hit by an uninsured driver, you may be left with huge costs.
3. Failing to confirm whether your foreign license or ID is accepted
   If you hold a valid license from México, Colombia, or Guinea Ecuatorial, some insurers in Texas will accept it temporarily (often up to one year) until you establish residency. But others demand a U.S. state license or proof of lawful presence. Always confirm with multiple carriers before binding a policy.
4. Not verifying the insurer’s credibility and community reputation
   Bilingual, community-focused insurers—like La Familia Auto Insurance—are trusted by many Latino communities in Texas for their transparency and ability to work with foreign IDs or no SSN.Avoid companies that give quotes but then cancel policies hidden by complex clauses.
5. Delaying insurance until after an accident or ticket
   Some migrants (from Guatemala, República Dominicana, or Venezuela) procrastinate insuring their cars until something bad happens. But once you have a traffic violation or accident, insurers see you as high risk—and rates can skyrocket or coverage be denied.

Table: Comparison of Common Mistakes & Consequences

When Should You Get Auto Insurance?

You must obtain auto insurance as soon as you register or begin driving a vehicle in Texas, whether or not you have a Texas driver's license.

Things to Consider if You're a Migrant -For migrants who have a valid foreign license, it's best to obtain insurance within the first few weeks. Many insurers allow foreign licenses temporarily (often for up to a year) before requiring a U.S. license. -In Texas, undocumented immigrants are currently not eligible for standard driver's licenses, although legislative efforts are underway. -If you're still waiting to obtain your legal status, you can explore insurers that accept alternative IDs, foreign documents, or those without a Social Security number, although policies may be more expensive.

Texas rules do not legally prohibit insurers from issuing policies to unlicensed or undocumented individuals.

If you have any questions, you can compare car insurance quotes now to find the best option.