Texas Car Insurance Laws: Everything you need to know

By Randy Luton | Last Updated: 06/24/2024

There are more than 18 million licensed drivers in Texas. And each driver has to buy car insurance to drive on the roads of Texas. Before you pay for your car insurance policy there are certain laws that every driver of Texas should know about. Keep reading till the end to learn about all the Texas car insurance laws.

Brief About Car Insurance Laws in Texas

Car insurance laws are vital to consider when determining how much vehicle insurance you have to obtain. Furthermore, automobile insurance rules may be confusing and, at times, difficult to understand – which can be intimidating considering that drivers who violate the law face harsh fines.

Texas law requires motorists to get Texas liability insurance, carry documentation of such insurance, and produce it to a police officer if required, as per the Texas Department of Insurance. If you still owe the money on the vehicle, lenders will also want an accident and full insurance.

Purchasing vehicle insurance coverage is the most suggested and usual option to meet legal responsibilities as per the texas auto insurance laws.

While a policy may include numerous coverages, Texas auto insurance requirements state that drivers have at least bodily injury and property damage protection. It is critical to keep evidence of insurance on hand at all times.

If you are unable to provide your insurance card throughout a traffic stop, you may face financial penalties, especially if you are involved in an accident.

The auto insurance in Texas requirements are always decided by the state

What are the Minimum Auto Insurance Requirements in Texas?

The auto insurance in Texas requirements are always decided by the state government. Every driver has to buy the minimum car insurance limits to start driving on the roads of Texas.

The Minimum Liability Coverage in TX is 30/60/25; to help you understand this we have explained the requirements in the table below:

Coverage TypeAmount
Bodily Injury Liability(Person)$30,000 per person
Bodily Injury Liability(Accident)$60,000 per accident
Property Damage Liability$25,000 per accident
Personal Injury Protection$2500

Keep in mind that Texas minimum car insurance does not require bodily coverage for your own car. If you want to be completely covered, you should think about getting additional coverage or boosting your current liability limitations.

Optional Texas Car Insurance Coverages

According to texas car insurance laws, there are several alternative insurance coverage options that provide a motorist with extended insurance and assistance in the case of an accident. This additional coverage might provide you with a sense of safety and secure your personal valuables.

  • Collision Coverage – This type of insurance protects harm inflicted by a collision with some other vehicle or item.
  • Comprehensive Coverage protects your car from non-collision damage including weather events, or theft.
  • Gap Coverage: It foots the bill between what you owe on a loan and the automobile’s cash worth if you are in a mishap and your car is wrecked.
  • Personal Injury Protection (PIP) – This covers your and your passengers’ medical bills, as well as missed earnings and non-medical expenditures. PIP coverage is included in all Texas plans, however, it can be declined in writing.
  • Medical Payments (MedPay) – This pays your medical expenditures when driving, walking, or biking or while riding in somebody else’s automobile.
  • Rental Automobile Reimbursement – Covers the expense of a rental car while your vehicle is being refurbished, etc.
  • Roadside Assistance – Provide assistance in the event of a breakdown.
  • Underinsured Motorist Coverage: It will compensate for personal injuries if you are involved in an accident committed by a driver who does not have coverage.

When contrasted to most other states, Texas car insurance requirements are around average. Nevertheless, having only the bare minimum of coverage will not keep you totally covered, as the expense of emergency care can quickly deplete your liability coverage with even minor injuries. This is particularly true if numerous persons are wounded as a result of an accident caused by you.

Texas’s Penalties for Driving without Proof of Insurance

Texas car insurance laws mandate that you purchase and maintain proof of car insurance. Texas auto insurance laws officially terminated the “Texas Driver Responsibility Program”, which assessed a $250 fine per year for three years for a variety of infringement, including driving with a suspended license.

  1. Driving Without Insurance: $350 Fine
    You don’t want to get spotted driving without insurance since the fines are severe. If you are stopped by a police officer without insurance, you will almost certainly receive a ticket and a judicial fine of up to $350.
  2. Driving Without Insurance Second Time: Up to $1000 fine and SR-22
    If it occurs again, you might be fined up to $1000, have your license revoked, be required to submit for an SR22 certificate (a necessity for high-risk motorists), have your car’s registration revoked, and/or the vehicle impounded. High-risk drivers pay a higher price and sometimes struggle to locate an insurance provider that will insure them.
  3. Accident Without Insurance
    Furthermore, if you are involved in a crash without insurance and cause significant damage or injuries, you may be held liable for the other person’s damage to the vehicle, medical costs, missed income, rental car fees, and face a court fight that may cost a lot of money.

Is Texas a fault-free state?

Texas is a fault-based accident state. According to the car insurance laws in Texas, this means that drivers must accept responsibility for and compensate for any accidents for which they are determined to be responsible.

Texas car insurance laws state that the Texas driver who is injured in an car accident caused by someone else has three alternatives under the fault-based insurance model:

  • Make a claim with their own insurance carrier. In this case, the insurance agency will seek payment from the at-fault driver’s insurance company, a process known as “subrogation”.
  • Directly file a third-party claim with the at-fault driver’s insurance company.
  • In the civilian lawsuit, file a medical negligence case against the at-fault driver. In this case, the insurance company of the at-fault motorist would normally come up and settle or fight the claim.

Texas Auto Insurance Requirements for Young Drivers

You have two choices for protecting your teen drivers.

  • You can include them in your coverage or purchase a separate contract for them.
  • Including them in your coverage is frequently less expensive.

Several companies need you to include on your insurance everybody who resides with you and is of driving age. Inform your employer whenever someone in your family begins to drive or reaches the age of 16.

According to the car insurance laws in Texas, if you do not notify the business and the company discovers them afterward, the company will charge you for the additional charge you should have incurred. The company may also refuse to extend your coverage or reject any disputes you have.

Some companies demand you to retain teenage drivers on your insurance even if they are away at school. Inform your insurance provider if your child attends school in another state. If your child will be attending school in another state, be sure you have adequate liability insurance.

If your teenager has a car, the provider may consider charging you differently because charges are determined by the location of the vehicle. If your child does not own a car, you may be eligible to earn a reduction on your insurance price.

How to get cheap car insurance in Texas?

For any driver, finding low-cost auto insurance is a top goal. There are several things you could do to discover and preserve the best rates for your situation. Below are the three best ways to get cheap car insurance in TX.

  1. One of the simplest methods to obtain the greatest savings on auto insurance requirements in Texas is to follow the traffic rules and drive carefully. You’ll also be able to optimize savings, like the good driver coupon, based on how many years you’ve passed without being involved in an accident or receiving a driving citation. Some auto insurance providers even provide telematics services that incentivize you with additional savings depending on your driving patterns.
  2. You should evaluate your auto insurance requirements yearly to determine if there have been any modifications in your life that may have an impact on your price. You may have altered driving behavior, such as a new route, a new driver with accessibility to your vehicles, or the option to combine your homes and auto insurance policies for a multi-policy discount. Since your automobile is depreciating as it ages, reducing its coverage may result in a lower rate.
  3. The best way is to compare and buy car insurance online. Before you decide to renew your existing policy or buy a new one, make sure you check the rates from other companies too.
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Frequently Asked Questions (FAQs)

  • What is compulsory auto insurance in Texas?

    In Texas, basic insurance often refers to the state’s minimum vehicle insurance regulations. Car insurance laws Texas makes it compulsory to have at least 30/60/25 coverage and $2,500 in personal injury protection.

  • How much does auto insurance in Texas cost?

    In Texas, the average yearly cost of auto insurance is $496 for minimal coverage and $1,800 for comprehensive coverage. This is nearly identical to the $1,738 yearly cost of complete coverage in the United States.

  • In Texas, does insurance track the vehicle or the driver?

    In general, automobile insurance in Texas covers the vehicle irrespective of who is operating it. If you lend your automobile to someone and it leads to accidents, your insurance company will still pay the price of damages up to the limits you paid.

  • According to Texas car insurance laws, who is covered by your auto insurance?

    In Texas, your minimal liability insurance policy will typically cover: You, your family members, and anybody driving your automobile with your consent. Other policies differ in terms of who is protected.

  • What if the insurance company for the other motorist denies my claim?

    If you feel the other driver was at fault but his or her insurance provider refuses to settle your claim, car insurance laws in Texas allow you to make a claim with your own insurer. To accomplish this, you must have collision coverage. Your insurance carrier will very certainly try to recover from the other driver’s insurance agency. You should be aware that if you submit a claim with your own firm, you will be obligated to pay a deductible.

  • Is auto insurance required in Texas to register a vehicle?

    To register your automobile in Texas, you must show many documents, one of which is evidence of insurance. Other criteria include VIN verification results and a safety examination. You must also produce proof of out-of-state headline and registration if you heretofore registered your vehicle in another state.

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  • Referred to an article about the number of drivers in Texas on 14th July 2022.
  • Visited the website of TDI to understand the number of car accidents in Texas.

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

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Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.