Car Insurance Requirements in Texas (2025)

If you’re a driver in the Lone Star State, it’s important to understand the nuances of Texas car insurance laws. Read on to learn about the state’s mandatory bodily injury and property damage liability coverage so you can hit the road with confidence.

Texas car insurance requirements

To drive legally in Texas, you must carry these minimum coverage amounts:^[1]

Coverage	Minimum Requirements
Bodily injury liability	$30,000 per person / $60,000 per accident
Property damage liability	$25,000

Texas also requires insurance companies to offer uninsured/underinsured motorist (UIM) coverage and $2,500 in personal injury protection (PIP) to policyholders who purchase liability insurance. But you can opt out of both coverages by notifying your car insurance company in writing that you don’t want UIM or PIP.

UM/UIM pays medical and car repair bills if you’re in an accident with an underinsured or uninsured motorist. PIP covers medical expenses and lost wages for you and your passengers. You can opt out of both coverages with your insurer, but PIP and UIM protect you in different ways than the required liability coverage.

Bodily injury liability

Your insurance policy’s bodily injury liability pays for medical bills, loss of income due to injury, emotional and physical pain and suffering, and funeral expenses after an accident. If you’re responsible for a car accident, this type of coverage pays for injury-related costs for the driver and passengers in the other vehicle.

Texas requires $30,000 in bodily injury coverage for each injured person. Passengers often sustain injuries in accidents, so Texas drivers need to carry $60,000 in bodily injury insurance per accident to cover more than two parties. In the state’s 30/60/25 insurance requirements, bodily injury coverage makes up the “30/60” part.

Property damage liability

Property damage liability accounts for the “25” in the 30/60/25 Texas insurance requirements. Texas drivers must carry $25,000 in property damage coverage. If you, or another driver operating your car, are at fault for an accident, property damage liability helps pay for the other driver’s car repairs or replacement.

Damage you cause to other property, like a fence, utility pole, or guardrail, also falls under property damage liability. It’s important to note this coverage type doesn’t apply to damage to your vehicle, which collision and comprehensive insurance typically covers.

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Texas Automobile Insurance Plan Association

High-risk drivers, meaning people with severe violations such as DWIs and reckless driving, coverage lapses, and multiple at-fault accidents, often have difficulty securing coverage because insurance companies view them as too risky to insure. The Texas Automobile Insurance Plan Association (TAIPA) is a state-run system that provides insurance for drivers who can’t find coverage through standard insurers.

TAIPA assigns high-risk drivers to insurance companies participating in the association, but its premiums are typically more expensive than standard policies. TAIPA also provides only the state minimum 30/60/25 liability coverage. Drivers are eligible if two traditional insurance companies have rejected them within 60 days.^[2]

Do you need more than state-minimum coverage in Texas?

The 30/60/25 liability coverage required by Texas law pays for medical bills, injury-related expenses, and repair costs incurred by the other driver and their passengers if you’re at fault for an accident. But the minimum coverage might not be enough to cover the other driver’s costs, and it doesn’t cover your vehicle at all, which could leave you at risk of a substantial financial loss.

Texas is an at-fault state, meaning if an injured party’s damages exceed your liability limits, they may be able to sue you for the difference.

If you have the minimum required liability insurance in Texas, a serious car accident could easily exceed your coverage and become an immense financial burden. Increasing your liability limits can help prevent this.

A full-coverage car insurance policy also increases your financial protection. Full-coverage policies generally include collision and comprehensive coverages, which pay for repair and replacement costs for your vehicle.

If your monthly budget is tight or you’re an infrequent driver, liability-only coverage could best suit your needs. But insurance professionals generally recommend coverage that goes beyond the minimum. If you can’t manage an unplanned expense, have a new car, live in an area with frequent severe weather, or drive in dense traffic, a full-coverage policy is a good idea, and most insurance professionals recommend carrying full coverage.

Penalties for driving without proof of insurance in Texas

Driving a motor vehicle without the mandatory 30/60/25 liability coverage is illegal in Texas and comes with strict penalties. If you drive without proof of insurance, you could face:

• A misdemeanor charge, which stays on your record unless you successfully petition for expungement

• A fine of $175 to $300 for your first offense and $350 to $1,000 for a second offense

• Vehicle impoundment after a second offense

• License suspension for up to two years after a second offense

The consequences are even more severe if you cause an injury or accident without proof of insurance. In that situation, you could be fined up to $500 and sentenced to a maximum of six months in jail.

Cheapest liability-only car insurance in Texas

The average monthly cost of liability-only insurance in Texas is $125. This is only slightly more expensive than the national average of $106. Liability-only insurance meets the state’s minimum bodily injury and property damage coverage requirements.

Many car insurance companies offer monthly rates less than $125, especially if you have a clean driving record, so comparison shopping could help you find a cheaper quote.

The below rates are estimated rates current as of: Thursday, June 5 at 12:00 PM PDT. 

Insurance Company	Average Monthly Quote
State Farm	$44
Allstate	$62
Mile Auto	$69
USAA	$78
Mercury	$96
Nationwide	$98
Progressive	$101
Root	$119
Dairyland	$120
The General	$125
GEICO	$127
Bristol West	$127
Safeco	$128
AssuranceAmerica	$131
Clearcover	$133
Chubb	$133
Commonwealth Casualty	$134
National General	$143
Direct Auto	$146
21st Century	$153
GAINSCO	$155
Elephant	$156
Foremost	$201
Liberty Mutual	$255
State Auto	$293
Hugo	$304

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest full-coverage car insurance in Texas

Full-coverage insurance is more expensive than liability-only insurance, but it provides more robust coverage. Full-coverage policies generally include comprehensive, collision, medical payments, uninsured/underinsured motorist coverage, and liability insurance. 

The average monthly cost of full-coverage insurance in Texas is $231, and you can see the cheapest full-coverage car insurance companies in the table below.

The below rates are estimated rates current as of: Thursday, June 5 at 12:00 PM PDT. 

Insurance Company	Average Monthly Quote
State Farm	$77
Allstate	$109
USAA	$137
Mile Auto	$140
Mercury	$163
Nationwide	$173
Progressive	$175
GEICO	$193
Safeco	$209
Clearcover	$220
Root	$221
Chubb	$234
Elephant	$248
The General	$248
Direct Auto	$255
National General	$261
Bristol West	$265
21st Century	$270
AssuranceAmerica	$287
GAINSCO	$320
Dairyland	$325
Liberty Mutual	$342
Commonwealth Casualty	$365
Foremost	$417
State Auto	$517

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Optional car insurance coverages to consider

The minimum requirements for Texas car insurance focus on your financial responsibility to the other drivers if you’re at fault in a traffic accident. But sticking to the minimum coverage could leave you with significant out-of-pocket expenses. If you want to increase your financial protection, consider adding the following coverages:^[3]

• 

  Collision coverage

  Collision coverage pays for car repairs or replacement for your vehicle if it’s damaged in a traffic accident, whether or not you were at fault. Collision insurance also covers damages from colliding with objects, like a utility pole, tree, or fence. Collision also covers rollover accidents and pothole damage.

• 

  Comprehensive coverage

  Comprehensive car insurance covers damages from incidents other than collisions. Weather-related damage from flooding, wildfires, and hail falls under comprehensive coverage. Comprehensive insurance also covers damage from hitting an animal, as well as from theft, vandalism, fire, and cracked windshields.

• 

  Medical payments (MedPay)

  Medical payments (MedPay) covers reasonable accident-related medical and funeral expenses for you and your passengers if you’re in an accident, regardless of fault. Unlike PIP, which all Texas insurers must offer, MedPay doesn’t pay for lost wages as the result of an injury. Because MedPay offers less robust coverage, it tends to be cheaper than PIP, but it can still protect you from medical debt.

• 

  Gap insurance

  Gap insurance, or guaranteed asset protection, covers the difference between your auto loan and your car’s actual cash value (ACV) — the value of your vehicle after depreciation. Gap coverage ensures you won’t need to make regular payments for a car you can’t drive.

• 

  Roadside assistance

  Roadside assistance is an optional insurance product that connects you with a professional, usually at a discounted rate, if you get a flat tire, need a jump-start, run out of gas, lock your keys in your car, or are otherwise stranded on the road.

Texas car insurance requirements FAQs