Car Insurance Requirements in Texas (2024)
You must meet the 30/60/25 minimum car insurance requirements to drive in Texas.
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Written byCassie Sheets
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9 years writing data-driven content
Lifestyle contributor to 30+ local news sites
Cassie Sheets has a background in home and garden and real estate content. At Insurify, she translates industry jargon into insights that empower insurance buyers.
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Reviewed byMark Friedlander
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Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Updated November 20, 2024
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Table of contents
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 a minimum of:
$30,000 in bodily injury coverage per person
$60,000 in bodily injury coverage per accident
$25,000 in property damage liability1
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 Texans can opt out of both coverages by notifying their car insurer in writing that they don’t want UIM or PIP.
UI/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.1
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 own vehicle, which collision and comprehensive insurance typically covers.
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Texas Automobile Insurance Plan Association
High-risk drivers, meaning those 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. However, 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.
Factoring in the high cost of litigation, the total economic cost of a fatal car accident exceeds $1.7 million, according to the National Safety Council.3 A disabling accident costs an average of $155,000. 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 cover 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. However, 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.
The cost of liability-only car insurance in Texas
The average monthly cost of liability-only insurance in Texas is $120. 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 $120, 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: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| State Farm | $37 |
| GEICO | $40 |
| Allstate | $53 |
| Mile Auto | $57 |
| USAA | $66 |
| Nationwide | $84 |
| Mercury | $87 |
| Progressive | $101 |
| Safeco | $102 |
| Dairyland | $109 |
| Chubb | $113 |
| National General | $124 |
| Clearcover | $125 |
| 21st Century | $130 |
| Direct Auto | $131 |
| The General | $131 |
| Bristol West | $136 |
| Commonwealth Casualty | $137 |
| Elephant | $146 |
| GAINSCO | $167 |
| Liberty Mutual | $200 |
| Foremost | $224 |
| State Auto | $250 |
| Hugo | $292 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
The cost of 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 $241, but State Farm, GEICO, and Allstate offer average monthly quotes of less than $100.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| State Farm | $69 |
| GEICO | $75 |
| Allstate | $98 |
| Mile Auto | $116 |
| USAA | $123 |
| Mercury | $149 |
| Nationwide | $155 |
| Progressive | $175 |
| Safeco | $182 |
| Clearcover | $186 |
| Chubb | $209 |
| Elephant | $239 |
| 21st Century | $242 |
| Direct Auto | $251 |
| National General | $256 |
| Dairyland | $280 |
| The General | $286 |
| Bristol West | $290 |
| Liberty Mutual | $328 |
| GAINSCO | $355 |
| Commonwealth Casualty | $378 |
| State Auto | $464 |
| Foremost | $475 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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.
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:
Collision coverage
Collision coverage pays for car repairs or replacement for your own 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.
Cheapest recent rates in Texas
Drivers using Insurify have found quotes as cheap as $37/mo for liability only and $61/mo for full coverage in Texas.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Texas car insurance requirements FAQs
Navigating Texas car insurance requirements can be complex. The answers below can help you make sense of complicated coverage laws and avoid hefty fines or license suspension.
Is car insurance required in Texas?
Texas requires drivers to carry 30/60/25 coverage. This means all drivers must have at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage. Texas drivers can purchase additional coverages if they want more than the minimum level of financial protection.
Do you need car insurance to register a car in Texas?
You need proof of auto liability insurance to register a vehicle and get license plates in Texas. In addition to your insurance card, you’ll need proof that you own the vehicle and your vehicle inspection report. Texas law requires annual vehicle inspections from an approved auto shop. In 2025, new legislation will take effect and an annual $7.50 fee will replace inspections.
Which company has the cheapest rates in Texas?
State Farm has the cheapest liability-only rates in Texas, averaging $37 per month.
Does insurance follow the car or the driver in Texas?
When you lend your car to a friend or babysitter in Texas, you’re also lending them your insurance coverage. The required liability insurance covers costs associated with injuries, death, and property damage after an accident. If you let someone borrow your car and that person causes an accident, you would file a claim through your insurance.
Does Texas require collision insurance?
Texas doesn’t require collision insurance, but it could be smart to add this optional coverage if you’re a frequent driver or want to avoid unexpected repair costs down the road. The $25,000 of property damage liability coverage required by state law covers repairs for the other driver’s car or damaged property. Collision coverage pays to repair or replace your vehicle after an accident.
How long do you have to insure a car in Texas?
If you get a new car in Texas, your current insurance will typically cover it for about 20 days. However, the length of coverage depends on your insurance policy, so you should always check with your insurer to avoid a lapse in coverage.
Texas also has a grace period of 31 days if a policyholder fails to pay after the first premium.4 During that time, coverage continues until the policyholder gives the insurer written notice to discontinue the policy before the grace period ends. The grace period ensures Texas drivers who experience financial hardships have time to get back on their feet before losing coverage.
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Cassie SheetsData Journalist
Cassie Sheets has more than nine years of experience creating compelling content for clients, brands, and local news sites. She started her career at Movoto Real Estate, where she transformed dry data into interesting insights for potential homebuyers. She’s since covered a wide range of topics, from pop culture news to home and garden trends.
Before joining Insurify, Cassie wrote engaging landing pages and blog posts for medical practices at MyAdvice. Now, she uses her knack for diving into the latest data and pulling out key details to empower insurance buyers.
Cassie holds a BFA in Creative Writing from Columbia College Chicago. In her free time, you can find her exploring the city with her dog, trying not to fall over in yoga classes, and petting cats at the shelter.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Featured in
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
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