Texas Auto Insurance Guide

Texas Minimum Auto Insurance Requirements

Get Texas Auto Insurance State Guides, Laws and Regulations before You Buy Insurance

Texas requires drivers to buy auto insurance, like most other states. In the Lone Star State, the minimum insurance requirements are sometimes described as “30/60/25.” This refers to:

• $30,000 liability coverage for each person injured in an accident you cause
• $60,000 total liability coverage, for all people injured
• And $25,000 property damage coverage

There is no law in Texas that requires drivers to buy other types of auto insurance, like collision or comprehensive coverage. Still, your lienholder may require you to buy this type of auto insurance. And many drivers feel more comfortable with higher limits of liability and more coverage on their vehicle.

Key Takeaways

When getting a quote for auto insurance in Texas, you can ask for the minimum amount of insurance required by the state. You will then get a quote which reflects liability amounts of “30/60/25.”

Liability means responsibility, and these minimum auto insurance policies will only cover damage you cause to others. They do not cover repairs to your vehicle or supply other benefits like roadside assistance.

Introduction to Texas Auto Insurance Requirements

Texas auto insurance requirements are published by the Texas Department of Insurance and your local Texas DMV. They change from time to time, and this makes sense, thanks to inflation and increasing costs of medical care and vehicle repairs.

Texas Auto Insurance Coverage Descriptions

Some Texans choose to buy more insurance than required by the state. Below, you’ll find descriptions of other popular insurance choices. Sometimes, these are sold as packages by insurers, and might be described as “new car insurance packages,” “premium packages” or “complete auto insurance” policies.

Examples include:

• Full coverage: it covers your vehicle for issues including storm damage, fallen tree limbs, hail, theft, lightning strikes and so on. It is not mandatory, but a lienholder (the bank to which you make your car payment) may require it.
• Collision coverage: Usually sold with full coverage as a package, this type of auto insurance pays for damages caused by a collision with another vehicle, structures, walls, fences and so on.
• Other endorsements and “riders”: these optional coverages include things like roadside aid, rental car coverage, and low glass deductibles for windshield replacement.

None of these coverages are required by TX law, but many drivers sleep better at night knowing they are financially protected from these issues. Additional coverage for uninsured/underinsured motorists is also available in Texas. This coverage helps to pay for injuries or damage caused by other drivers who don’t have any/enough insurance.

TX Minimum Auto Insurance Requirements

Texas auto insurance minimum requirements exist to protect all drivers and passengers on the road. They’ll help to pay for injuries and damage you might cause to others. They don’t supply any protection for your own vehicle, however, and that’s an important distinction.

TX minimum auto insurance coverages are explained in detail below.

$30,000 Covers Injuries to One Person

After an accident, your insurer will pay up to $30,000 for injuries to another person. This coverage will handle things like ambulance rides, emergency room visits, medical care, surgery, physical therapy, missed work and more.

$60,000 Coverage for Injuries to More Than One Person

If you cause an accident that harms more than one person, your insurer will pay for their medical care up to a total of $60,000. There is no limit on the number of people who can receive care, but the total dollar amount is capped at $60,000.

For instance, if you cause injuries to three people, and their total care costs equal more than $60,000, you will be financially responsible for the remaining amount. Insurance will only pay up to policy limits.

$25,000 Property Damage Coverage

Your insurer will pay up to $25,000 for damage you cause to other people’s property. In Texas, property includes vehicles, structures, fences and livestock.

Considering the high costs of new vehicles and high repair costs, many drivers feel more coverage is valuable.

New Driving Laws in Texas

Texas is taking a firm stance against driving while intoxicated (DWI) in the state. As of 2023, drivers discovered with a blood alcohol content (BAC) of 0.08% or more may be required to install an interlock ignition device. This device acts as a “breathalyzer” test, and the installation and removal costs of the device will be paid by the offending driver.

As of 2021, pedestrians in crosswalks have more legal protection from drivers, as well. If a driver strikes a pedestrian, cyclist, or even a golf cart while in a crosswalk, the driver will be charged with a Class A misdemeanor. If the pedestrian suffers serious injury, that charge will become a state jail felony.

Penalties for Failure to Carry Texas Auto Insurance

Auto insurance is required in Texas, and law enforcement officials take this very seriously. If you’re caught driving without insurance in TX, expect to pay a fine of $1,000. Furthermore, your vehicle may be impounded for up to 180 days and you might lose your license for up to two years.

How to Get the Best Prices on Texas Auto Insurance

The best way to get a good price on auto insurance in Texas is to shop around every few years. Many insurers will slowly creep their prices up over time, even for very safe, experienced drivers.

It’s also important that you maintain a safe driving history, avoid accidents and obey all speed limits.

Some insurance companies will offer discounts for clients who buy several types of policies. You might hear this marketed as “bundles.” In short, you might get a better deal on all your policies by placing them with one insurer. However, bundling makes it difficult to remove or change one policy without affecting the others.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

Texas State Auto Insurance Premiums

Insurance companies consider many factors about a driver and a vehicle when creating premiums. And be aware, they share databases with one another.

Based on these details, they place autos and drivers into “risk pools” to determine their prices:

• Driver gender
• Driver age
• Years of driving experience
• Marital status
• Vehicle value and age
• Purpose of vehicle (commuting, pleasure, agricultural work, etc.)
• Your claims history
• Claims costs of vehicles of this make and model
• Driving record
• Zip code and garage location

Some insurers offer discounts for things like safe driving behavior, good grades for students, or professional certifications. Be sure to ask your insurance agent if these apply.

TX Auto Insurance Rates by Carrier

There are hundreds of auto insurance providers in Texas. We’ve listed the average rates for safe drivers below. But remember, your price can be affected by the details listed above.

For help finding Texas auto insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !