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Texas Car Insurance Regulations & Required Coverage

All drivers living in Texas are required to maintain minimum liability insurance limits of 30/60/25 along with uninsured/underinsured bodily injury and property damage coverage. The state follows a tort system and has penalties for individuals who fail to provide proof of insurance.

Texas insurance law dictates that someone must always be found to be found at fault for causing a car accident. The person found at fault and their insurer is then held responsible for covering the monetary damages incurred by the accident. This type of system is referred to as a tort system and the specific rules and regulations can vary from state to state.

Required Coverage

All personal vehicles in Texas require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage
Minimum Texas Car Insurance Requirements
Bodily Injury Liability $30,000 / $60,000 Limit
Property Damage Liability $25,000 Limit

Additional insurance coverage can include:

  • Uninsured / Underinsured Motorist Coverage
  • Comprehensive and Collision Coverage
  • Medical Payments Coverage
  • Personal Injury Protection (PIP) Coverage
  • Towing & Labor coverage
  • Rental Reimbursement Coverage

Uninsured / underinsured coverage can be very useful coverage to add to your policy. It will provide financial assistance if you are involved in an accident with an uninsured or underinsured motorist.

Collision and comprehensive coverage are usually bundled together and are able to cover expenses above your deductible for repairs to your vehicle regardless of fault (collision) and also non-collision damages to your vehicle if it is stolen or damaged by a tornado or hail (comprehensive). Even if your car isn't on the list of most stolen vehicles in Texas, we strongly recommend purchasing comprehensive insurance.

Medical payments coverage can help pay for medical and/or funeral bills for people involved in an accident. This covers you, family that lives in your household and passengers in the vehicle regardless of who is found to be at fault.

Personal injury protection provides the same benefits of medical payments coverage but also will provide 80% of any lost income and the cost of a care person for people injured in an accident.

Towing & labor will cover expenses related to help services such as a tow truck or for a company to help fix a tire.

Rental reimbursement coverage will provide a set amount of money to be used to obtain a rental vehicle if yours has been stolen or requires repairs.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • File a surety bond with the county clerk. The surety bond needs to include two people who both own real property in Texas.
  • Make a deposit of $55,000 to the county comptroller
  • Make a deposit of $55,000 to the county judge
  • Self insurance is available to those with more than 25 cars. Certification with the Texas DMV is required.

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID card provided by your insurance company
  • Documentation provided from establishing financial responsibility via method other than getting a liability policy

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer (drivers have 10 days to provide proof of insurance)
  • When obtaining or renewing your license
  • During the registration of your vehicle
  • During the inspection of your vehicle
  • After you are involved in an accident

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance when asked, you can face one of the following penalties:

  • A fine of between $175 - $350 for a first offense
  • A fine of between $350 - $1000 for a second offense
  • Suspension of your license
  • Your vehicle can be impounded

Texas Insurance Agents

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