You’ll likely need insurance when you own a car in Texas, since the Lone Star State requires most drivers to provide proof of insurance to complete registration.
17+ years in insurance and personal finance writing
In-depth knowledge of home and real estate topics
Angela is an insurance and personal finance expert who uses her experience to create content that helps readers understand important and complex topics.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
Updated September 11, 2024 | Reading time: 4 minutes
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In most cases, vehicle owners must register their vehicles with the state of Texas. But if the vehicle is inoperable, the state may not require registration. If you don’t plan to drive the vehicle or can’t drive it because it’s inoperable, you don’t need to provide proof of insurance.[1]
If you’re restoring a car, consider purchasing car insurance to protect against other damages, such as vandalism and natural disasters.
When you need to buy car insurance in Texas
Texas requires all drivers who own a vehicle to purchase auto insurance if they drive or park the car on Texas roads. Drivers need to have proof of insurance coverage to help show financial responsibility for any potential property damage or accidents that may occur while they’re on the road.
New residents have 30 days after moving to the state to provide proof of financial responsibility through an insurance policy and register their vehicle.[2] In addition, drivers who don’t own a vehicle but plan to regularly operate a vehicle belonging to a friend or family member may want to consider purchasing insurance.
While a friend or family member’s insurance may provide some coverage, their insurance may not protect you completely if you’re in an accident while driving their car. To save, consider purchasing a Texas non-owner policy. This policy offers extra protection at a lower rate than the average cost of standard insurance coverage.
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When you may not need car insurance in Texas
Texas doesn’t require all people with a valid driver’s license to have car insurance.[3] Some examples of people who may not need to purchase insurance include the following:
A person who doesn’t own a vehicle — especially if they don’t drive
Drivers who own a vehicle that doesn’t function and is parked
Drivers covered by a parent’s or guardian’s policy
Keep in Mind
You may be able to park your vehicle without paying for insurance, but your city or HOA may have rules about storing inoperable vehicles. If you decide to drive the vehicle — even around the block — and the police pull you over, you could face heavy fines.
Texas car insurance requirements
Like every state except New Hampshire, Texas requires drivers to have minimum liability coverage. This coverage ensures you can provide some financial compensation for property damage or medical expenses if a court finds you at fault in an accident. Drivers should consider purchasing additional coverage to protect against claims in a civil lawsuit that exceeds their insurance limit.
According to the Texas Department of Insurance, state law requires the following minimum insurance coverages:
$30,000 in bodily injury liability per person
$60,000 in bodily injury liability per accident
$25,000 in property damage liability
Texas is an at-fault state, which means the at-fault driver in an accident must pay for damages and injuries they cause. Texas has a modified comparative fault rule, which means that if both parties are at fault, they may only collect if they’re less than 51% fault in the accident. The fault percentage can affect the amount of damages someone can collect.
Optional car insurance coverages for Texas drivers
In addition to the minimum amount of coverage Texas requires, other insurance options may provide additional protection. You should note that most insurance professionals recommend that drivers purchase more than the state’s minimum to ensure coverage of all damages.
If your auto insurance doesn’t sufficiently cover damages, you could face a lawsuit for additional compensation from the injured party. Some other types of car insurance coverage you might consider include:
Collision coverage
Collision insurance pays for repairs or replacement of your car after an accident that involves a collision with another vehicle or object.
Comprehensive coverage
Comprehensive insurance pays for damages or replacements if anything other than a collision, like theft or vandalism, damages or destroys your car.
Uninsured/underinsured motorist coverage
Anuninsured/underinsured motorist policy offers additional protection against accidents with uninsured drivers who don’t have enough (or any) car insurance.
Personal injury protection coverage
PIP insurancepays for lost wages, bodily injury, and other non-medical expenses. Unlike other coverages, Texas insurance policies automatically include PIP unless you decline it in writing.
Accident forgiveness coverage
Not all insurers offer it, butaccident forgivenesscan help ensure your car insurance premium doesn’t increase at renewal following your first at-fault accident. You generally need to have at least three years of a clean driving record to be eligible to buy this optional coverage.
Rental reimbursement coverage
You can purchase this type of insurance to help cover costs if you need a rental car or to use ridesharing services while your vehicle undergoes repairs following an accident.
Roadside assistance coverage
Roadside assistance coverage ensures you can save money on emergency repairs, such as a flat tire, locked keys, jump-starting your vehicle, or towing your car to a repair facility.
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Penalties for driving without car insurance in Texas
Even though Texas law requires drivers to carry auto insurance on vehicles they own, nearly 14% of drivers in the state don’t have car insurance.[4] Driving without minimum coverage in Texas could have severe consequences.
If the authorities catch driving youwithout car insurance, you could face a fee of up to $350 for the first offense. A second offense could result in a fine of up to $1,000, and the state may suspend your driver’s license.[5]
Can you own a car without insurance in Texas FAQs
If you still need more information about owning a car without auto insurance, here are answers to a few of the most commonly asked questions.
Do you need proof of insurance to buy a car in Texas?
Yes. You must provide proof of insurance if you want to drive your vehicle off the lot after purchase. It’s illegal to drive any motor vehicle without insurance. You should provide proof of insurance at the vehicle registration appointment.
Does Texas law require drivers to have auto insurance?
Yes. Texas requires drivers to carry a minimum of 30/60/25 liability coverage on every vehicle they own. You might consider purchasing more than the state minimum for additional protection.
Do you have to be the registered owner of a vehicle to insure it in Texas?
It depends. You can purchase a non-owner liability car insurance policy if you don’t own a vehicle but borrow one regularly. Non-owner policies aren’t tied to a specific vehicle, so they have limited protections.
Can you self-insure your car in Texas?
Companies that own 26 or more vehicles can self-insure. Texas will issue self-insure certificates that expire every 36 months. Companies must provide proof that they can cover any damages, and drivers must purchase insurance through car insurance companies.[6]
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Angela Brown is a freelance writer with 17 years of professional writing and editing experience. She specializes in finance, real estate, and insurance content. Angela uses her experience to create easy-to-understand content that helps consumers understand tough topics better. When she’s not working, she enjoys spending time with her family and planning vacations.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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