Texas car insurance requirements and laws

Minimum car insurance requirements

Texas has required 30/60/25 liability coverage since January 1, 2011 (Transportation Code § 601.072). The Texas Department of Insurance (TDI) explains that two other coverages are built into every policy unless you decline them. Personal injury protection (PIP) is included unless you reject it in writing. Uninsured/underinsured motorist coverage must be offered and is also declined only in writing.

PIP pays medical bills, lost wages and some other costs for you and your passengers regardless of fault. The required amount is $2,500 per person, and higher limits are sold. Texas uninsured/underinsured motorist coverage can pay for both injuries and vehicle damage, including after a hit and run. A deductible applies to the property damage part. Drivers who can't find coverage elsewhere can buy liability, PIP and UM/UIM through the Texas Automobile Insurance Plan Association, the state's insurer of last resort (assigned risk plans: insurance of last resort).

What the minimums mean in practice: suppose you cause a crash on a Houston freeway that injures one driver. The driver has $40,000 in medical bills and lost wages, and $30,000 in vehicle damage. Your policy pays $30,000 toward the injuries and $25,000 toward the car. That leaves $15,000 that can be pursued against you, plus any pain-and-suffering award. With repair costs and new-vehicle prices where they are, a $25,000 property damage limit can run out fast. Use the state car insurance requirements lookup and how much liability coverage do you need? to compare.

Fault system and what it means after a crash

Texas is an at-fault state. The at-fault driver's liability insurer pays the other side's damages. PIP, if you kept it, pays your own early medical bills and lost wages regardless of fault. That makes Texas an add-on state: the PIP is added to a fault system, with no limit on lawsuits.

Texas calls its comparative negligence rule "proportionate responsibility" (Civil Practice and Remedies Code § 33.001). You cannot recover damages if your share of responsibility is greater than 50%. At 50% or less, your recovery is reduced by your percentage. See comparative vs contributory negligence and how fault is determined in a car accident.

Optional coverage worth considering here

• Don't reject PIP or UM/UIM without thinking it through. The Insurance Research Council estimated 14.5% of Texas drivers were uninsured in 2023. UM/UIM also covers drivers whose 30/60/25 policy is too small for your injuries (uninsured and underinsured motorist coverage explained, Personal injury protection (PIP) explained).
• Comprehensive. Hail, flooding and hurricanes make comprehensive claims common in Texas (hail, flood and storm damage: filing a comprehensive claim).
• Collision, gap insurance for financed vehicles, and rental reimbursement.
• Higher liability limits, often paired with an umbrella policy.

What drives rates in Texas

Texas's NAIC average expenditure was $1,429 in 2023, above the national $1,281.60. Severe weather is the defining local factor, with hailstorms across North and Central Texas and hurricanes and floods on the Gulf Coast. Large metro areas such as Houston, Dallas–Fort Worth and San Antonio add heavy traffic, long commutes, theft and frequent claims. Rising repair costs push up prices statewide (why car insurance got more expensive, and where prices stand in 2026). Texas also has many county mutual insurers, a structure that lets insurers file rates differently. See county mutual insurance company and texas county mutuals and fronting carriers: who really insures you.

Penalties for driving uninsured

Under Transportation Code § 601.191, driving without required coverage is a misdemeanor:

• First offense: a fine of $175 to $350 (a court can reduce it if you can't pay)
• Later offenses: a fine of $350 to $1,000

After a second conviction, the Department of Public Safety suspends your license unless you file and keep proof of financial responsibility for two years (§ 601.231). Officers check coverage using the state's TexasSure database. A citation must note that the officer could not verify coverage. See penalties for driving without insurance and state insurance verification systems.

SR-22 and high-risk drivers

Texas uses the SR-22 as proof of financial responsibility. The most common trigger is a repeat uninsured-driving conviction, which requires two years of filings. Filings are also required after certain suspensions and crash judgments. Many Texas carriers, including nonstandard auto insurance specialists, file SR-22s. Because quotes for high-risk drivers vary widely, compare several (SR-22 insurance explained, high-risk car insurance: options when insurers say no).

Insurers with a strong presence in Texas

State Farm, Progressive, Allstate, GEICO and Farmers Insurance are among the largest writers in the state. USAA is headquartered in San Antonio and serves the state's large military community. In-state carriers include Texas Farm Bureau Insurance (Waco), which covers Farm Bureau members (Farm Bureau insurance: membership, eligibility and how it works), and Germania Insurance (Brenham). See regional car insurers: when smaller carriers can beat the giants.

Where to get help

The Texas Department of Insurance consumer help line is 800-252-3439. TDI is at 1601 Congress Avenue, Austin (mailing address PO Box 12030, Austin, TX 78711), and online at tdi.texas.gov. TDI explains coverage, takes complaints about claim delays and denials, and publishes a consumer auto insurance guide (how to file a complaint against a car insurance company). License suspensions are handled by the Department of Public Safety. The deadline to sue for injuries or property damage is generally two years (§ 16.003; see statutes of limitations for car accident claims). Ask a licensed attorney about your claim.