In Texas, drivers are required to carry auto insurance and have proof of coverage in their vehicle at all times. If asked, they must show this to law enforcement. Driving without insurance can result in big penalties, including fines and license suspension.
Car insurance must be purchased before you register a vehicle, and while the basic coverage requirements are statewide, rates and options vary by city. Auto insurance protects you financially by paying for the other party’s repair and medical bills in an accident. Depending on your policy, it may also pay for damage to or theft of your vehicle.
Texas also requires insurance companies to give consumers a Consumer Bill of Rights for Auto Insurance when they buy or renew a car insurance policy, ensuring transparency and protection.
Minimum Car Insurance Requirements for Texas
Texas liability coverage limits are the maximum amount your insurance company will pay for damages or bodily injury if you are at fault in an accident. These minimum limits are required by law, so all drivers have a basic level of financial responsibility to pay for damages from accidents. Limits are usually expressed in a 3 number format like 30/60/25 or 25/50/25, depending on the policy update or the source of the information.
Texas liability coverage is divided into three parts:
- Bodily Injury Liability Coverage per Person: This is the maximum your insurance will pay for injuries to one person in an accident. For example, with a 30/60/25 policy, your insurer will pay up to $30,000 per person.
- Bodily Injury Liability Coverage per Accident: This is the total your insurer will pay for all injuries in one accident, regardless of how many people are injured. Under Texas minimums, this is $60,000 per accident for a 30/60/25 policy or $50,000 for a 25/50/25 policy.
- Property Damage Coverage per Accident: The maximum your insurer will pay for damage to someone else’s property, usually vehicles or structures. In Texas, this minimum liability limit is $25,000 per accident.
Liability Coverage in Texas
Liability car insurance coverage is required by law for all drivers in Texas. It pays for:
- Medical expenses,
- Vehicle repairs or replacement costs
- Lost wages,
- Pain and suffering of the other party if you are the at-fault driver.
However, liability coverage does not cover medical bills or property damage. Those must be covered through other car insurance options, such as collision or personal injury protection.
While meeting the mandatory state minimum insurance requirements keeps you compliant, many insurance agents recommend higher coverage limits. The financial impact and the payouts for insurance claims on serious accidents often exceed the minimum amounts.
For example, suppose one person has $45,000 in medical bills, but your policy only covers $30,000. In that case, you’ll have to pay the remaining $15,000 out-of-pocket even if total injuries in the accident don’t exceed the per-accident limit.
While Texas requires liability insurance to have a basic financial safety net, it’s recommended to go above the minimum to protect your assets from lawsuits and big surprise bills in case of a big accident. Check your personal risk and financial situation to determine your coverage.
Optional Car Insurance Coverage in Texas
While Texas law only requires liability insurance, which covers injuries and damages to others in at-fault accidents, most insurance companies offer many additional coverage types that provide extra protection for drivers and their vehicles.
These coverage options are essential for those with leased or financed vehicles, as lenders often require additional protection. Even when not required, these types of coverages can help limit out-of-pocket expenses and give you peace of mind on the road.
Popular Optional Auto Insurance Coverages are listed below.
- Comprehensive Coverage: Pays for physical damage to your vehicle from non-collision incidents such as theft, vandalism, fire, glass breakage, natural disasters, and animal contact. Lenders require it, and it covers repair costs, while liability insurance doesn’t.
- Collision Coverage: Pays for damage to your vehicle from collisions with other vehicles or objects, regardless of fault. It also satisfies loan or lease requirements and pays the car’s actual cash value in total loss situations.
- Uninsured/Underinsured Motorist Coverage: This protects you if you’re in an accident with a driver who has no car insurance or does not have enough insurance coverage. Includes:
- Bodily Injury Coverage: Covers your medical expenses if the at-fault party is underinsured.
- Property Damage Coverage: Pays for damage to your vehicle and other insured property caused by an uninsured or underinsured driver.
- Medical Payments Coverage (MedPay): This covers medical and funeral expenses for you and your passengers, regardless of who was at fault in the accident. It is good if your health insurance is limited or has high deductibles.
- Personal Injury Protection (PIP): In addition to medical expenses, PIP also covers lost wages and other non-medical expenses such as childcare or household services from accident-related injuries. PIP is included in Texas auto insurance policies by default but can be waived in writing.
- Loan/Lease Payoff (Gap Coverage): This covers the gap between the amount owed on a vehicle loan or lease and the vehicle’s current market value. In the event of a total loss, your policy will pay the lender in full.
- Rental Reimbursement (Loss of Use): Helps pay for a rental vehicle or alternate transportation if your car is inoperable due to a covered loss.
- Roadside Assistance: Covers mechanical breakdowns, flat tires, dead batteries, lockouts, and towing. Levels of coverage vary from basic to full.
- Accident Forgiveness: Some companies offer this to prevent your rate from increasing after your first at-fault accident.
While these are optional in Texas, they fill the liability insurance gaps. Choosing the right combination of optional coverages will save your wallet in case of high medical bills, vehicle loss, or uninsured drivers. Consider your vehicle’s value, financial obligations, and personal risk tolerance when choosing coverages. Shop around for car insurance quotes to balance coverage with your budget.
Penalties for Driving Without Car Insurance in Texas
Driving without car insurance in Texas is illegal, and fines can be expensive. The state requires liability insurance, and if you don’t comply, you will face a series of increasing penalties that far outweigh the cost of car insurance. Texas, like most states, imposes fines, driver’s license related consequences, and other penalties to discourage uninsured driving and protect all drivers.
The Legal and Financial Penalties for driving without car insurance in Texas are below.
- Fines and Fees
- First offense: $175 to $350
- Subsequent offenses: up to $1,000 fine plus additional administrative fees. Texas has discontinued the Texas Driver Responsibility Program surcharge of $250 per year. However, you will still face financial consequences for each offense.
- Driver’s License Suspension
- If you are caught driving without insurance or involved in an accident without insurance, your driver’s license may be suspended. Reinstatement will require proof of insurance and reinstatement fees.
- Vehicle Impoundment
- Police can impound your vehicle in some cases. To get your vehicle back, you must show proof of insurance and pay impound fees.
- SR-22 Filing Requirement
- If you drive without insurance and get caught you must file an SR-22 with the Texas Department of Public Safety. You must keep this for up to 2 years. Insurance companies will label you a high risk driver. This will increase your car insurance rates.
- Out of Pocket Costs in Accidents
- If you get into an accident without insurance, you must pay all property damage and medical bills. Other people can sue you for injuries or damages. These costs can be very high and can lead to civil lawsuits.
Driving without insurance in Texas will get you fined, impounded, license suspended and higher rates. The cost of not having insurance is higher than the cost of car insurance.
SR-22 Insurance for High-Risk Drivers in Texas
In Texas, high-risk drivers are required to carry SR-22 Insurance. This is not an insurance policy but a Certificate of Financial Responsibility that your insurance company files with the Texas Department of Motor Vehicles (DMV). It proves you have at least the state minimum liability coverage.
This applies to drivers who:
- Have been convicted of a DUI or DWI,
- Have been in multiple serious accidents,
- Have had their license suspended more than once or
- Have driven without insurance and been in an accident.
If your SR-22 lapses for any reason, your license will be suspended. To comply with Texas law and keep your license, you must have continuous coverage for the entire SR-22 filing period, usually 2 years.
The Importance of Meeting Texas Car Insurance Requirements
Protecting yourself, your finances, and other road users on Texas roads is a matter of both law and common sense. Texas auto insurance requirements mandate that all drivers carry at least liability insurance, which covers the costs of bodily injury and property damage they might cause in an accident.
However, the state’s minimum coverage requirement can leave you vulnerable to more serious risks, such as vehicle theft, weather damage, or accidents involving uninsured drivers.
That’s where a full-coverage insurance policy comes in. Most insurance agents recommend a vehicle insurance policy because it includes collision, comprehensive, and other optional coverages. That means you’ll be better prepared to handle a wider range of potential losses.
Suppose you’re worried about the cost of upgrading your coverage. In that case, you should compare quotes from multiple insurance companies to find the best value. Insurance Navy’s comparison platform makes it easy to compare car insurance rates from top carriers and find more affordable options that still meet or exceed Texas car insurance requirements.
Having the right auto insurance in place not only keeps you on the right side of the law, but it also protects your financial well-being in the event of a serious incident on the road. And that peace of mind is worth a lot.
Frequently Asked Questions
What’s the minimum liability insurance I need to drive in Texas legally?
Texas law requires at least $30,000 bodily injury per person, $60,000 total per accident, and $25,000 for property damage—commonly called 30/60/25. These minimums help pay for medical bills and the cost of repairs for others if you’re found at fault in an accident.
What does 30/60/25 liability coverage mean?
The three numbers represent the maximum your insurance company will pay per accident: $30,000 for bodily injury per person, $60,000 for all parties involved, and $25,000 for property damage. This makes it easier to remember and understand your coverage limits.
Does Texas accept digital proof of insurance on a smartphone?
Yes, since Senate Bill 181 was passed in 2013, Texas law recognizes a digital insurance card on your smartphone or other wireless device as valid proof of insurance. It is more convenient and accessible during traffic stops from police officers or during vehicle registration.
How does the TexasSure insurance verification program work?
TexasSure electronically checks insurance coverage by matching your vehicle’s VIN against an insurance database. If no active policy is found during a traffic stop, you may receive notifications or penalties, such as fines, registration holds, or citations.
Does Texas have a grace period if my policy lapses?
No, Texas insurance law has no grace period. Once your insurance coverage expires, you’re considered uninsured and could face big fines, vehicle impoundment, license suspension, or SR-22 filing requirements.
Where can I get help if I can’t afford auto insurance in Texas?
If you can’t afford standard auto insurance, you can apply through the Texas Automobile Insurance Plan Association (TAIPA). TAIPA assigns you to an insurer that offers basic state-minimum (30/60/25) coverage after at least two other insurers have declined you.
Is Texas a no-fault state for auto insurance?
No, Texas is an at-fault (tort) state. That means the driver found to be at fault in an accident is financially responsible for all damages, including medical bills, vehicle repairs, and property damage for other parties.
