What Is the Minimum Car Insurance in Texas?

Texas's Minimum Liability Requirements

30/60/25 coverage explained:

$30,000 bodily injury liability per person

• Covers medical bills, lost wages, and pain and suffering for one person you injure
• If medical costs exceed $30,000, you pay the difference out of pocket
• Example: You cause an accident and injure someone requiring $75,000 in treatment. Your insurance pays $30,000; you're personally liable for $45,000.

$60,000 bodily injury liability per accident

• Total coverage for all people injured in a single accident
• If you injure multiple people, this limit applies to the combined claims
• Example: You injure two people with medical bills of $50,000 each ($100,000 total). Insurance pays $60,000; you owe $40,000.

$25,000 property damage liability per accident

• Covers damage to other vehicles, buildings, fences, or property
• Average new vehicle costs $48,000+—well above this limit
• Example: You total someone's $40,000 SUV. Insurance pays $25,000; you owe $15,000.

What liability insurance does NOT cover:

• Your own injuries
• Your own vehicle damage
• Damage you cause exceeding policy limits

For a complete breakdown of liability coverage, see our guide on liability car insurance explained.

Why 30/60/25 May Not Be Enough

Texas's minimum limits are better than some states, but still leave you exposed.

Here's why:

1. Medical costs can quickly exceed $30,000 per person.

• Average ER visit for serious injuries: $10,000–$50,000
• Surgery: $30,000–$150,000+
• ICU stays: $10,000+ per day
• Long-term rehabilitation: $50,000–$200,000+

One serious injury can blow through your $30,000 per-person limit.

2. Newer vehicles cost more than $25,000 to repair or replace.

• Average new car price: $48,000+
• Luxury and EV repairs: $20,000–$50,000+
• Multi-vehicle accidents: $50,000–$100,000+
• Commercial property damage: $100,000+

If you total a Tesla Model Y ($55,000), your $25,000 property damage limit leaves you $30,000 short.

3. You're personally liable for anything above your limits.

• Injured parties can sue for the difference
• Courts can garnish wages, seize bank accounts, and place liens on your home
• Bankruptcy may not discharge injury judgments

Real-world example: You're at fault in a multi-car accident on I-35. You injure three people (medical bills: $40,000, $35,000, and $25,000 = $100,000 total) and total two vehicles ($50,000 + $35,000 = $85,000).

Your 30/60/25 policy pays:

• $60,000 for bodily injuries (you owe $40,000)
• $25,000 for property damage (you owe $60,000)

Total you owe out of pocket: $100,000.

For more guidance on coverage levels, read how much car insurance do I need.

Recommended Coverage for Texas Drivers

Most Texas drivers should carry at least 100/300/100 coverage:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident

Why 100/300/100 is better:

• Covers most serious accidents without exposing personal assets
• Protects your home, savings, and future wages
• Only costs $200–$500/year more than minimum coverage
• Demonstrates financial responsibility

Consider even higher limits if:

• You own a home or significant assets
• You have high income or substantial savings
• You drive in high-traffic areas (Houston, Dallas-Fort Worth, Austin, San Antonio)
• You have teen drivers on your policy

Options include:

• 250/500/100: Strong protection for homeowners
• 500/500/100: Maximum coverage for high-net-worth individuals
• Umbrella insurance: Adds $1–$5 million in liability protection beyond your auto policy (costs $200–$500/year)

For state-by-state requirements, see our complete guide on minimum car insurance requirements by state.

Additional Coverage to Consider in Texas

Uninsured/underinsured motorist coverage (UM/UIM):

Texas does not require UM/UIM coverage, but insurers must offer it. You can reject it in writing.

Why you need it:

• About 14% of Texas drivers are uninsured (one of the highest rates in the U.S.)
• UM/UIM covers your medical bills and lost wages if hit by an uninsured or underinsured driver
• Hit-and-run accidents are also covered

Recommended: Add UM/UIM coverage and match your liability limits (100/300 or higher). It's affordable—typically $100–$300/year—and essential protection.

Learn more in our guide on uninsured motorist coverage.

Personal injury protection (PIP):

Texas requires insurers to offer PIP, but you can reject it.

• Covers your medical bills and lost wages regardless of fault
• Minimum: $2,500 per person
• Recommended: $10,000+ for better protection
• Costs $50–$200/year

Collision and comprehensive coverage:

• Not required by law, but required by lenders if you finance or lease
• Collision: Covers damage to your vehicle in accidents
• Comprehensive: Covers theft, vandalism, weather, fire, and animal strikes
• Recommended if your vehicle is worth $3,000+

Learn the difference in our article on comprehensive vs collision insurance.

Penalties for Driving Without Insurance in Texas

Texas has strict penalties for uninsured driving.

Fines:

• First offense: $175–$350
• Subsequent offenses: Up to $1,000

Surcharges:

• Texas Driver Responsibility Program: $260/year surcharge for 3 years (total: $780)

License and registration suspension:

• TxDOT suspends your driver's license and vehicle registration
• Reinstatement requires proof of insurance and payment of reinstatement fees ($125–$250)

Vehicle impoundment:

• Police can impound your vehicle
• Impound and storage fees: $150–$300+ daily
• Total cost can exceed $2,000+

SR-22 requirement:

• You may be required to file an SR-22 (certificate of financial responsibility) for 2 years
• SR-22 increases insurance premiums by 20–50%

For more on SR-22 requirements, see our guide on SR-22 insurance.

Liability for damages:

• You're personally responsible for all accident costs
• Injured parties can sue and garnish wages
• No insurance protection

Verification program: Texas uses TexasSure, an electronic insurance verification system. Law enforcement and TxDOT can instantly check if your vehicle is insured. There's no faking it.

Proof of Insurance Requirements

You must carry proof of insurance at all times.

Acceptable forms:

• Insurance ID card (paper or digital/electronic)
• Policy declaration page
• Binder or other proof from your insurer

When you need proof:

• During traffic stops
• At accident scenes
• Vehicle registration and inspections
• When requested by law enforcement

Digital proof is accepted: Texas law allows electronic proof of insurance on your phone. Make sure it's easily accessible and your phone is charged.

Providing false proof:

• Providing fake or expired insurance documents is a misdemeanor
• Penalties include fines up to $1,000 and potential jail time

Expired insurance: Even a lapse of one day counts as driving uninsured. Keep your policy active and pay premiums on time.

How Much Does Car Insurance Cost in Texas?

Average annual premiums in Texas:

• 30/60/25 (minimum): $700–$1,100/year
• 100/300/100 (recommended): $900–$1,400/year
• Full coverage (liability + collision + comprehensive): $1,600–$2,800/year

Factors that affect your rate:

• Location (Houston, Dallas, and Austin have higher rates due to traffic density and weather risks)
• Age (drivers under 25 pay more)
• Driving record (accidents, tickets, DUIs)
• Credit score (Texas allows credit-based insurance scoring)
• Vehicle type (luxury and sports cars cost more)
• Annual mileage
• Coverage limits and deductibles

Texas-specific factors:

• Hail and storm damage (comprehensive claims are common)
• High uninsured driver rates (14%+)
• Urban congestion increases accident risk

For tips on reducing costs, read how to lower car insurance.

How to Get Cheaper Car Insurance in Texas

Compare quotes from multiple insurers.

• Rates vary by hundreds of dollars between companies
• Compare at least 3–5 quotes annually
• Use comparison tools like Coverwise

Learn more in our guide on how to compare car insurance quotes.

Increase your deductibles.

• Raising your deductible from $500 to $1,000 saves 10–20%
• Only do this if you have emergency savings

Ask about discounts:

• Good driver: 20–30% off
• Bundling (home + auto): 15–25% off
• Good student: 10–15% off
• Low mileage: 5–15% off
• Defensive driving course: 5–10% off
• Pay-in-full: 5–10% off
• Anti-theft devices: 5–10% off

Maintain continuous coverage.

• Gaps in coverage increase rates by 30–50%
• Even brief lapses trigger higher premiums

Improve your credit score.

• Texas insurers use credit-based insurance scores
• Better credit = lower premiums
• Pay bills on time and reduce debt

Drive less.

• Low-mileage or usage-based insurance (UBI) programs save money
• Programs like Snapshot, SmartRide, or Milewise track mileage and driving behavior

Take a defensive driving course.

• Texas offers insurance discounts for approved courses
• Typically 5–10% off for 3 years
• Courses cost $25–$50 and take 6 hours (online or in-person)

Can You Drive Without Insurance in Texas?

No—with very limited exceptions.

Legal alternatives to insurance:

1. Self-insurance (deposit with the state):

• Deposit $55,000 with the Texas Comptroller
• Only practical for fleet owners or businesses
• Not realistic for individual drivers

2. Surety bond:

• Post a $55,000 surety bond
• Rarely used by individuals

Bottom line: For 99.9% of drivers, liability insurance is the only practical option.

Don't risk it. The penalties, financial liability, and stress of driving uninsured far outweigh the cost of insurance. Minimum liability coverage costs less than $100/month and protects you from devastating lawsuits.

Frequently Asked Questions