Texas Car Insurance Laws (2026)
Texas requires all drivers to carry minimum liability coverage of 30/60/25 to legally operate a vehicle.
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Written byJessica Martel
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Jessica MartelInsurance Writer
7+ years in personal finance writing
Certified Financial Education Instructor
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Edited byMacKenzie Korris
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MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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Reviewed byJohn Leach
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John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
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Drivers in Texas must carry minimum liability coverage of 30/60/25. The state follows a fault-based insurance system, meaning the driver who causes a crash is responsible for paying the other driver’s damages and medical bills.
If you’re caught driving without car insurance in Texas, the state could fine you and possibly suspend your license.
Here’s what you need to know about car insurance laws in Texas.
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Auto insurance requirements in Texas
Texas state law requires drivers to carry the state’s minimum liability coverage, which includes:[1]
$30,000 for injuries per person
$60,000 for injuries per accident
$25,000 for property damage
This is called 30/60/25 coverage. Minimum car insurance requirements in Texas are similar to those in neighboring Oklahoma, which requires 25/50/25, but higher than in New Mexico, which requires 25/50/10, and in Louisiana, with 15/30/25.
Minimum coverage requirements in Texas are much lower than in some of the highest-requirement states, including North Carolina, which requires 50/100/50 in liability coverage, and Alaska, at 50/100/25.
Texas law requires only liability insurance, but Texas insurance companies must also offer uninsured motorist coverage, underinsured motorist coverage, and personal injury protection (PIP) coverage when you start a policy. If you don’t want these coverages, you have to decline them in writing.
Since Texas is an at-fault state, the driver who causes an accident is responsible for repairing or replacing the other driver’s vehicle or damaged property and covering their medical expenses.
Is state-minimum car insurance in Texas enough coverage?
State-minimum car insurance in Texas may not be enough to protect you if you cause a serious accident. If you total another driver’s car or injure multiple people, the cost of the claim could exceed your policy’s coverage limits.
Without enough insurance to cover the damages, you could be responsible for paying the remaining costs out of pocket.
To better protect yourself, consider increasing your liability limits. Higher policy limits provide more coverage to repair or replace another driver’s car or pay for their medical expenses if you cause an accident.
You may also want to consider the following types of coverage:
Collision coverage: One reportable crash occurs every 57 seconds in Texas, according to the Texas Department of Transportation. Collision coverage, which is part of a full-coverage policy, pays to repair or replace your vehicle if you’re involved in a crash.
Comprehensive coverage: Texas is exposed to high winds and flooding, especially during hurricane season.[2] Comprehensive coverage pays to repair or replace your vehicle if it’s vandalized or stolen, or if a non-collision event damages it.
Uninsured/underinsured motorist coverage (UM/UIM): About 12% of Texas drivers are uninsured, according to the Texas Department of Motor Vehicles. UM/UIM coverage pays for your medical bills and car repairs if an uninsured driver hits you. It also covers you if you’re involved in a hit-and-run accident.[3]
Penalties for driving without insurance in Texas
If a police officer pulls you over for driving without insurance in Texas, you can face steep consequences. Under Texas law, driving a vehicle without minimum liability insurance is a misdemeanor.
You can face a fine of up to $350 for your first offense. If an officer catches you driving without insurance a second time, the state can fine you and suspend your driver’s license and vehicle registration if you don’t maintain proof of insurance or financial responsibility.[4]
The following table shows penalties for driving without an insurance policy in Texas.
Offense  | Penalty |
|---|---|
| First offense |
|
| Subsequent offense |
|
In addition to penalties, you’ll likely have higher insurance costs if the state discovers you’re driving without insurance.
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Texas auto insurers must explain coverage denials
As of Jan. 1, 2026, Texas law requires insurance companies to explain in writing when they decline, cancel, or won’t renew your auto policy. This law helps protect consumers by giving drivers the information they need to understand and correct the issue, if possible.
For example, if an insurer denies you coverage due to reckless driving or a poor driving record, you can take steps to improve your driving habits over time.
Insurers may deny coverage or choose not to renew your policy for several reasons. These include filing too many claims, involvement in multiple accidents, driving while intoxicated (DWI), or failing to pay your insurance premiums.
If an insurer denies or cancels your coverage, carefully review the written explanation. Contact the insurance company directly if you need more information. If you don’t have the insurer’s phone number, call the Texas Department of Insurance (TDI) help line at 1 (800) 252-3439.
You can also file a complaint with the TDI through its online complaint portal if you believe your insurer is acting unfairly.[5]
Texas insurance laws FAQs
Check out the answers to frequently asked questions below to learn more about the legal requirements of Texas car insurance coverage.
Is Texas a no-fault state?
No. Texas is an at-fault state. This means the at-fault driver is responsible for paying to repair or replace the other driver’s car or property and cover their medical expenses.[6]
What car insurance does Texas require?
Texas law requires drivers to have 30/60/25 insurance coverage. This includes $30,000 in bodily injury liability insurance per person and $60,000 per car accident, as well as $25,000 in property damage liability. While Texas law requires insurance companies to offer uninsured/underinsured motorist coverage and PIP coverage, you can decline these optional coverages in writing.
Can someone drive your car if they aren’t on your insurance in Texas?
Yes. If you give someone permission to borrow your car, your insurance covers them even if your policy doesn’t list them. If you let someone drive your car who your policy explicitly names as an excluded driver, no coverage applies.[7]
How do Texas car insurance laws affect uninsured drivers?
If a police officer catches you driving without car insurance in Texas, you face fines and penalties, possible license suspension, and increased insurance premiums. If you cause an accident and don’t have insurance, you may have to pay for vehicle damage and medical bills out of pocket.
Sources
- Texas Department of Insurance. "Auto insurance guide."
- Texas Department of State Health Services. "Natural Disasters."
- Texas Department of Insurance. "What is uninsured motorist coverage, and do I really need it?."
- Texas Constitution and Statutes. "Transportation Code, Chapter 601."
- Texas Department of Insurance. "Get help with an auto insurance complaint."
- Nolo. "What Happens If I'm At Fault for a Car Accident?."
- Texas Department of Insurance. "FAQ: Auto insurance, claims, coverage issues, and more."
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)
Jessica MartelInsurance Writer
7+ years in personal finance writing
Certified Financial Education Instructor
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in