Car Insurance in Texas

State minimum coverage requirements

Under Texas Transportation Code Section 601.072, all Texas drivers must maintain the following minimum coverage:

• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $25,000 property damage per accident

Driving without insurance in Texas is a Class B misdemeanor for a first offense, carrying fines up to $350 and potential license suspension. A second offense can result in fines up to $1,000, and your vehicle may be impounded. Texas law requires you to carry proof of financial responsibility at all times and present it during a traffic stop or after any accident. If you cause an accident while uninsured, the state can suspend your license and registration for up to two years, and you may be required to file an SR-22 certificate with the Texas Department of Public Safety before your driving privileges are reinstated.

Is Texas a no-fault state?

No. Texas is an at-fault state.

The driver found responsible for causing an accident is liable for the resulting damages, and injured parties file claims against the at-fault driver's liability insurance rather than their own policy. Your liability limits directly determine how much financial exposure you carry if you cause a serious accident. Consider a situation where you cause a collision and the other driver sustains injuries requiring $80,000 in medical treatment. If your policy carries the state minimum of $30,000 per person, the remaining $50,000 becomes your personal responsibility. Texas courts can garnish wages and place liens on property to collect unpaid civil judgments. The state minimum has not kept pace with the actual cost of medical care or vehicle repairs, which is why most insurance professionals recommend limits well above what the law requires. Texas also follows a modified comparative fault rule. If you are found partially at fault for an accident, any compensation you receive from the other driver's insurer is reduced by your percentage of fault. If you are more than 50 percent at fault, you cannot recover anything from the other party.

What the state minimum covers and does not cover

Texas's 30/60/25 liability minimum covers only injuries and property damage you cause to other people. It does not cover:

• Damage to your own vehicle from a collision
• Your own medical expenses after an accident
• Losses caused by an uninsured or underinsured driver
• Theft, weather events, or vandalism to your vehicle

Uninsured motorist coverage in Texas

Texas insurers are required to offer uninsured and underinsured motorist coverage, and drivers may only reject it by signing a written waiver. This coverage pays for your injuries and vehicle damage when an at-fault driver carries no insurance or not enough insurance to cover your losses. Texas has a significant number of uninsured drivers on its roads. If one causes a serious accident that injures you, your options without UM coverage are limited to suing the at-fault driver personally, which is often not practical when that person has no assets. UM coverage steps in and pays your medical bills and vehicle repairs up to your policy limits as if the other driver had adequate insurance. Underinsured motorist coverage is equally important. If a driver with the $30,000 state minimum causes an accident that results in $80,000 of your medical expenses, their policy covers only $30,000. Your UIM coverage pays the remaining $50,000 up to your own UIM limit. Carrying UM and UIM at the same limits as your liability coverage is a widely recommended baseline for Texas drivers.

How credit affects your rate in Texas

Texas permits insurers to use a credit-based insurance score as one factor when pricing auto policies. The check is a soft inquiry and does not affect your credit report or credit score. Texas law requires insurers to notify you if credit information results in an adverse action on your policy, giving you the opportunity to review your credit report for inaccuracies. If your credit has improved since your last renewal, shopping new quotes across multiple carriers is worthwhile because carriers weight credit differently and improvements in your score can reduce your premium even without any change in your driving record.

Recommended coverage levels

Most financial advisors and insurance professionals recommend carrying at least 100/300/100 liability, which is well above the Texas minimum. At this level you have $100,000 per person and $300,000 per accident in bodily injury coverage, plus $100,000 for property damage you cause. These limits provide meaningful protection without a dramatic increase in premium compared to the state minimum. If your vehicle is financed or leased, your lender will require collision and comprehensive coverage in addition to liability, and they may also specify a maximum deductible. If you own your vehicle outright, consider its current market value before adding collision and comprehensive. A practical rule is that if the annual cost of those coverages exceeds ten percent of the vehicle's value, they may not be cost-effective. For most Texas drivers, a solid baseline policy includes 100/300/100 liability, uninsured and underinsured motorist coverage at matching limits, collision with a $500 deductible, comprehensive with a $500 deductible, and medical payments coverage for additional protection for your own injuries regardless of fault.

How insurers determine your rate in Texas

Texas insurers use your driving record, zip code, vehicle type, age, annual mileage, and credit-based insurance score to calculate your premium. Urban areas like Houston, Dallas, and San Antonio have higher accident frequency and vehicle theft rates than rural areas, which directly affects what carriers charge. The vehicle you drive affects the cost of collision and comprehensive coverage based on repair cost, theft frequency, and safety ratings. Your annual mileage, age, years of licensed experience, and the coverage limits you choose all factor into the final premium as well. At-fault accidents and moving violations typically affect your rate for three to five years. Because each insurer weights these factors differently, comparing quotes from multiple carriers at renewal is the most reliable way to find the most competitive rate for your specific profile.

SR-22 requirements in Texas

An SR-22 is not a type of insurance. It is a certificate your insurer files with the Texas Department of Public Safety confirming you carry at least the state minimum liability coverage. You may be required to maintain an SR-22 after a DUI or DWI conviction, after being caught driving without insurance, or after accumulating too many points on your driving record. The requirement typically remains in place for two years from the triggering event, and your license stays suspended until the SR-22 is on file. Not every insurer offers SR-22 filing, so if you need one you may have to search specifically for carriers that work with higher-risk drivers. Allowing your policy to lapse during the SR-22 period restarts the suspension and can extend the overall requirement.