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Texas Car Insurance Information

Requirement : Yes

Car insurance is required in Texas . Drivers must have a minimum of liability coverage.

Minimum Coverage Car Insurance Requirements:

A minimum liability coverage is required:

    • $30,000 for bodily injury to one person.
    • $60,000 for bodily injury per accident.
    • $25,000 for property damage per accident.

Other Car Insurance Coverage Options:

Liability coverage is the only requirements for Texas motorist to have, there are several other types of coverage available to drivers:

  • Collision – Covers damages to your vehicle due to an accident.
  • Comprehensive – Covers damages due to your non-accident related damages to your car, such as inclement weather.
  • Medical Payments – Helps cover your medical or funeral costs due to an accident.
  • Rental reimbursement – Reimburses you if you have to rent a car after an accident.
  • Uninsured/Underinsured motorist coverage – Covers you in case you’re involved in an accident with an uninsured party, or they don’t have adequate coverage.
  • Note: Comprehensive and or collision coverage is optional, unless the vehicle is being financed or leased, the lending/leasing agency may require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility:

Other legal ways around buying car insurance include:  

    • Surety bond: From two individuals that own property in Texas, must have same coverage limitations as liability insurance minimum.
    • $55,000 cash or securities deposit with the state comptroller.
    • $55,000 cash or cashier’s check deposited with the county judge of the county in which the car is registered.
    • Certificate of self-insurance, must own a fleet of more than 25 vehicles.

Proof of Insurance: Yes

You must carry proof of insurance and registration with your vehicle at all times. You don’t need proof of insurance to register your car or obtain a driver’s license. Texas uses TexasSure, an interagency electronic verification system that electronically verifies proof of financial responsibility.


Insurance Violations:

Violations, Fines & Penalties:

  • Should you be found operating a vehicle without the mandatory minimum insurance coverage, you face:
    • $175 - $350 fine for first offense.
    • $350 – $1,000 fine for subsequent offenses.
      • Suspension of driver’s license.
      • Impoundment of vehicle.

SR22:

A SR22 may be required after a suspension in order to get your driver’s license reinstated. An SR22 certificate only certifies proof of insurance of minimum requirements, it is not insurance.

  • An SR-22 certification may be required to reinstate your license or registration if you’ve been convicted of:
    • Driving with a suspended license.
      • You will have to hold an SR-22 for 3 – 5 years.

  Credit Scores & Determining Your Insurance Premium :

All Texas drivers are required to have car insurance, however, insurance providers are reserved the right to deny coverage to high-risk drivers. Drivers denied by 2 or more private providers can purchase insurance through the Texas Automobile Insurance Plan (TAIP)

  • To be eligible for the TAIP program, you must:
    • Have a valid driver’s license or applying for one.
    • Live in, or have vehicle registered in Texas.
    • Certify that 2 private insurance providers have turned you down within the last 60 days.

  

Other factors that may be used to determine your premiums include:

  • Age
  • Credit history
  • Claims history
  • Coverage history
  • Driving history
  • Deductible
  • Neighborhood, city of residence
  • Primary use of vehicle
  • Year, make, model of vehicle

Discounts : Yes

Discounts available in Texas:

  • Defensive driving discount.
  • Driver education discount.
  • Good driver discount.
  • Good student discount.
  • Homeowner discount.
  • Multi-vehicle discount.
  • Multi-policy discount

Cellphone Use:

There is no ban on cellphone use while driving, except drivers with learner’s permits or intermediate licenses are prohibited from cellphone use. Texting is only banned when driving with passengers under the age of 17. Violators face up to a $200 - $500 fine


Texas Minimum Coverage Laws

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