Texas Auto Insurance Requirements: Minimum Coverage

Quick Answer: Texas Minimum Auto Insurance

Texas requires all drivers to carry liability insurance. The state-mandated minimums are:

This is commonly written as 30/60/25. Texas has higher minimums than many states, but they still may not be enough for serious accidents.

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What Texas Law Requires

Under the Texas Transportation Code, all drivers must:

1. Maintain liability insurance meeting 30/60/25 minimums
2. Carry proof of insurance at all times
3. Show proof at traffic stops, accidents, and registration
4. Have coverage before driving - not after an accident

Understanding 30/60/25 Coverage

Bodily Injury Liability - $30,000/$60,000

Covers injuries you cause to other people:

• $30,000 maximum per injured person
• $60,000 maximum per accident (all injured people combined)
• Pays medical bills, lost wages, pain and suffering for others
• Does NOT cover your own injuries

Property Damage Liability - $25,000

Covers damage you cause to others' property:

• Other vehicles
• Buildings, fences, light poles
• Other personal property
• Does NOT cover damage to your own vehicle

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Alternatives to Traditional Insurance

Texas allows two alternatives to standard auto insurance:

Option 1: Surety Bond

• Amount required: $55,000 minimum
• Must be filed with the Texas Department of Public Safety
• Remains in effect until canceled
• Must maintain bond continuously

Option 2: Self-Insurance Certificate

• For owners of 25+ vehicles
• Must demonstrate financial ability to pay claims
• Apply through Texas Department of Motor Vehicles
• Typically used by businesses and fleet operators

Note: These alternatives are rare. Over 99% of Texas drivers use traditional insurance.

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Why Texas Minimums May Not Be Enough

While Texas has better minimums than some states, they can still leave you exposed:

Real-World Cost Comparison

Personal Liability Example

Scenario: You cause a two-car accident on I-35.

• Driver 1: $45,000 in injuries
• Driver 2: $35,000 in injuries
• Vehicle damage: $40,000

Your 30/60/25 coverage pays:

• Driver 1: $30,000 (capped per person)
• Driver 2: $30,000 (capped; $60,000 total hit)
• Property: $25,000
• Total paid: $85,000

You personally owe: $35,000

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Penalties for Driving Uninsured in Texas

Texas has serious penalties for uninsured driving:

First Offense

Second and Subsequent Offenses

If You Cause an Accident While Uninsured

TexasSure Verification Program

Texas uses an electronic system to verify insurance:

• Insurers report coverage to the state database
• Law enforcement can check status instantly
• DMV cross-checks during registration
• Lapses are flagged automatically

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Recommended Coverage for Texas Drivers

Minimum Recommended: 50/100/50

Better Protection: 100/300/100

Additional Coverages to Consider

Personal Injury Protection (PIP)

• Covers your medical expenses regardless of fault
• Texas requires insurers to offer PIP
• You can reject it in writing
• Minimum offered: $2,500
• Recommended: Accept and increase if possible

Uninsured/Underinsured Motorist (UM/UIM)

• Protects you from uninsured drivers
• ~14% of Texas drivers are uninsured
• Covers your injuries and property damage
• Texas requires insurers to offer this coverage
• Can be rejected in writing

Collision Coverage

• Pays to repair your car after accidents
• Required if you have an auto loan
• Deductibles typically $500-$1,000

Comprehensive Coverage

• Covers theft, hail, flooding, animals
• Important in Texas due to severe weather
• Required if you have a car loan

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Texas-Specific Insurance Rules

Proof of Insurance Requirements

You must show proof of insurance:

• At any traffic stop
• At any accident scene
• During vehicle registration
• During vehicle inspection

Acceptable proof:

• Insurance card (paper or electronic)
• Policy declarations page
• Binder from insurance company

Texas accepts digital proof - showing your insurance card on your phone is legal.

Insurance and Vehicle Registration

You cannot register a vehicle in Texas without proof of insurance. When registering:

• Provide policy number and company name
• Information is verified against TexasSure database
• Registration will be denied if insurance can't be verified

Insurance and Vehicle Inspection

Texas requires annual vehicle safety inspections. Beginning in certain counties, proof of insurance must be shown at inspection time. The statewide policy continues to evolve.

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SR-22 Requirements in Texas

Some drivers must file an SR-22:

When SR-22 Is Required

• DUI/DWI conviction
• Driving without insurance
• Driving with suspended license
• Too many traffic violations
• At-fault accident while uninsured

SR-22 Requirements

How SR-22 Works in Texas

1. Court or DPS orders SR-22 filing
2. Contact insurance company (not all offer SR-22)
3. Purchase policy meeting minimum requirements
4. Insurer files SR-22 electronically with DPS
5. Pay any license reinstatement fees
6. Maintain continuous coverage for full term

Important: If your insurance lapses during the SR-22 period, your insurer notifies DPS and your license is suspended again.

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How Much Does Texas Auto Insurance Cost?

Average annual premiums in Texas:

Factors affecting your rate:

• Age and driving experience
• Driving record
• Location (Houston, Dallas more expensive)
• Vehicle type and value
• Credit history
• Annual mileage
• Coverage levels and deductibles

Texas-specific factors:

• Severe weather exposure (hail, flooding)
• High uninsured driver rate
• Urban vs. rural location
• Traffic density

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Frequently Asked Questions

Is auto insurance required in Texas?

Yes. Texas law requires all drivers to maintain minimum liability insurance of 30/60/25. The only exceptions are vehicles with a $55,000+ surety bond or a self-insurance certificate (for fleets of 25+ vehicles).

Can I drive in Texas with out-of-state insurance?

Yes, if you're visiting. Your out-of-state insurance covers you while driving in Texas. However, if you become a Texas resident, you must obtain Texas insurance within 30 days of establishing residency.

Does Texas require PIP coverage?

No, but insurers must offer it. You can reject PIP in writing. If you don't explicitly reject it, PIP is automatically included. PIP covers your medical expenses regardless of fault.

What is the TexasSure program?

TexasSure is the state's electronic insurance verification system. Insurance companies report your coverage status to a central database. Law enforcement and the DMV can instantly verify if your vehicle is insured.

Does Texas have no-fault insurance?

No. Texas is a "fault" (tort liability) state. The at-fault driver's insurance pays for damages. You can sue the at-fault driver if their coverage is insufficient.

What if I can't afford insurance?

Options include:

• Shop around—rates vary significantly
• Raise deductibles to lower premiums
• Ask about low-mileage discounts
• Look for state minimum-only policies
• Texas has no state-sponsored low-cost program like California

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Key Takeaways

• Texas requires 30/60/25 minimum liability coverage
• Minimums are higher than many states but still may not be enough
• Alternatives exist: $55,000 surety bond or self-insurance (25+ vehicles)
• Recommended coverage: At least 50/100/50 with PIP and UM/UIM
• Driving uninsured results in fines, surcharges, and SR-22 requirements
• TexasSure electronically verifies insurance status
• SR-22 required for 2 years after DUI or uninsured driving

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Important Disclaimer

This guide provides general information about Texas auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the Texas Department of Insurance and Texas DMV.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: November 2025

Sources: Texas Department of Insurance, Texas Transportation Code, Texas DPS