Texas Car Insurance Requirements

An in-depth look at the "financial responsibility" rules for Texas vehicle owners, minimum car insurance requirements, and more.

By , J.D. · University of San Francisco School of Law

Texas vehicle owners are required to demonstrate their financial responsibility for any crash they might cause. Most Texas drivers do this by buying car insurance, and state law requires certain minimum amounts of coverage when insurance is purchased. We'll discuss those minimums in this article, plus a few other important Texas car insurance rules.

Texas Is a Fault-Based Car Insurance State

Texas uses a "fault" system when it comes to liability for a car accident. In the words of the Texas Department of Insurance, a "fault" system is one that requires drivers to "pay for the accidents they cause." In most instances, it's the at-fault driver's car insurance company that pays for accident-related injuries and other losses.

What Are My Claim Options After a Car Accident In Texas?

In practice, Texas's status as a "fault" car insurance state means that after a traffic accident occurs, depending on the circumstances of the crash and the different car insurance policies that might be in play, an injured driver, passenger, or pedestrian may decide to:

(By contrast, "no-fault" states usually require a policyholder's own insurer to pay for their medical bills, lost income, and other out-of-pocket losses—up to certain minimums—regardless of who caused the accident. In no-fault states, an injured person must meet certain threshold requirements in order to step outside the no-fault car insurance system and make a claim against the at-fault driver.)

What's the Minimum Car Insurance Requirement In Texas?

As touched on above, Texas requires drivers to demonstrate their financial responsibility in case they cause a car accident on the state's roads and highways. Most vehicle owners choose to comply with this requirement by purchasing car insurance. If you're buying car insurance in Texas, the law requires you to have the following minimum amounts of liability car insurance coverage:

  • $30,000 for bodily injury liability per person injured in an accident you cause
  • $60,000 for total bodily injury liability when two or more people are injured in an accident you cause, and
  • $25,000 for property damage per accident you cause.

This basic coverage—known as "30/60/25" coverage for short—pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage.

Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Who Is Covered Under Liability Insurance In Texas?

Besides covering the policyholder when they're involved in an accident in their vehicle, most liability coverage will kick in if:

  • any member of the policyholder's family is involved in an accident while driving the policyholder's vehicle
  • if the policyholder has loaned the vehicle to someone who gets into an accident, and
  • if the policyholder gets into an accident in a rental car.

Proof of Car Insurance In Texas

You'll need to carry your insurance card or proof of insurance in your vehicle with you, in case you are asked to present it to a law enforcement officer during a traffic stop. Failing to carry insurance or to provide proof of insurance when asked for it can result in fines and other penalties, especially if you're involved in an accident.

Can I Show Digital Proof of Car Insurance In Texas?

Yes. Texas Transportation Code section 601.053 lets drivers use a digital device to produce evidence of financial responsibility.

The Minimum Required Car Insurance In Texas Won't Cover Your Own Losses

It's important to note that the liability coverage we've discussed here doesn't apply to your own injuries or vehicle damage after a car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses.

For example, in Texas, car insurance companies are required to offer personal injury protection (PIP) to policy purchasers. Customers are free to decline this coverage, but it can be used to get your car accident medical bills paid pretty quickly after an accident, before any fault determination is made (since it's no-fault coverage).

Collision coverage can pay for repairs to (or replacement of) your damaged vehicle after a car accident.

Do I Need Uninsured Motorist Coverage in Texas?

Texas does not require drivers to buy uninsured/underinsured motorist coverage, but it does require insurance companies to offer this kind of coverage, which can provide additional protection if you're in an accident with someone who has no car insurance, or whose coverage won't pay for your medical bills and other losses.

In Texas, all uninsured/underinsured motorist coverage is subject to a $250 deductible, which you must pay before the insurance company will pick up the remaining bills up to coverage limits.

Next Steps

The Texas Department of Insurance website offers more information on auto insurance in Texas, including advice on choosing the right coverage.

It's always a good idea to understand the car insurance rules where you live, but if you've been involved in a car accident in Texas, it might make sense to discuss your options with a lawyer, especially if you've been seriously hurt. Learn more about how a car accident lawyer can help if you've been injured in a crash.

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