Is car insurance required in Texas?

Yes. You need to have car insurance in Texas if you want to drive in this state legally. At the very least, your policy should meet Texas’ minimum insurance requirement, which is 30/60/25 with PIP coverage of $2,500 (unless you waive the PIP component). If you cannot show proof of insurance — or if your policy does not meet the minimum coverage limits — you may be subject to various penalties. These could range from fines to jail time.

Do you need car insurance to register a car in Texas?

To have your car registered in Texas, you will have to present several documents, with proof of insurance being one of them. Other requirements include the results of VIN verification and a safety inspection. If you previously registered your car in another state, you also have to show out-of-state title and registration.

What is “basic” car insurance in Texas?

Basic insurance typically refers to the minimum car insurance requirements in Texas. It is a liability-only policy with at least 30/60/25 coverage and PIP coverage of $2,500 (the PIP component may be waived).

Does insurance follow the car or driver in Texas?

Generally, car insurance in Texas provides coverage to the car, regardless of who is driving it. If you loan your car to someone and cause an accident, your insurance carrier will still cover costs of damages up to your purchased limits. An exception to this is when you’re renting a car in Texas — insurance may follow the driver if you bought additional coverages that extend to rental vehicles.

Can you get car insurance without a license in Texas?

Yes, you can purchase car insurance in Texas even if you don’t have a license. It may make finding an insurance carrier more challenging than usual since one of the first things they ask for is your driver’s license number, but it is possible. Although it may seem illogical, having car insurance in Texas even if you don’t drive may prove beneficial in some situations. One example of this is if someone frequently drives you to and from different locations. Since insurance in Texas generally follows the car, you will still be covered regardless of who is behind the wheel in an accident.

Is Texas a no-fault state and what does that mean?

Texas is a tort state or an at-fault state. It means that if you get into an accident and are at fault, you will have to shoulder the other driver’s expenses, including medical costs and property damage.

Is PIP coverage required in Texas?

Personal injury protection is required in Texas unless you explicitly decline it by signing a waiver. Not having this coverage may leave you vulnerable if you’re injured in an accident and can't work. Carriers in Texas are required to offer at least $2,500, but you can increase limits to ensure you have more financial protection on the road.

Does Texas require uninsured motorist insurance?

Although uninsured motorist insurance is not part of the minimum car insurance requirements in Texas, it’s a good idea to purchase it. Despite car insurance being mandatory in Texas, many drivers still do not carry it. Texas ranks 40th with regards to the number of uninsured drivers, which is approximately 8.3%.

Does Texas allow for diminished value compensation after an accident?

Diminished value refers to the difference between a car’s market price before and after an accident. Even after being repaired, a car will still have less value than before the accident happened. In Texas, you can file a diminished value claim if you are involved in an accident. Texas car insurance laws state a diminished value claim must be filed within two years of when the accident occurred. If you were at fault for the accident or the damage was caused by anything other than a collision, then a diminished value claim is not possible.

How do car insurance requirements change after a DUI in Texas?

Being convicted of driving under the influence in Texas results in the suspension of your driver’s license for at least 90 days. To have it reinstated, you need to file an SR-22, which assures the state that your policy meets the minimum car insurance requirements in Texas. Having an SR-22 classifies you as a high-risk driver and may cause your insurance premium to increase significantly.

What is a CARCO inspection and is it required?

Some states require a car to undergo a pre-insurance inspection before allowing you to purchase collision and comprehensive insurance. It prevents fraud by providing a record of the car’s physical condition before insurance coverage takes effect. CARCO is the primary company that puts the reports together and sends them to the insurance carrier. CARCO inspection is not mandatory in Texas. There are only five states that require it — Florida, Massachusetts, New Jersey, New York and Rhode Island.

Texas Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

As a tort state, Texas car insurance laws require at-fault drivers to cover expenses incurred in an accident. Having auto insurance proves you can pay for damages. You also need to show proof of insurance when registering your vehicle or applying for a driver’s license. At the very least, your policy should meet the minimum car insurance requirements in Texas, which are 30/60/25. This means your policy will cover damages from bodily injuries up to $60,000 per accident with a limit of $30,000 per person, along with $25,000 in coverage for property damage. Having personal injury protection (PIP) insurance of at least $2,500 is also necessary unless you waive this coverage in writing.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Texas
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Texas
FAQs

What Is the Minimum Car Insurance Requirement in Texas?

State laws determine how much car insurance you need in Texas. Drivers in Texas must have policies that meet the state’s minimum car insurance requirements, which are:

$30,000 per person for bodily injury
$60,000 per accident for bodily injury
$25,000 per accident for property damage
$2,500 per personal injury protection (unless waived in writing)

In addition to liability coverage, PIP or personal injury protection protects you against expenses incurred in an accident you caused. Remember, though, that these are minimum requirements only — you always have the option of increasing your limits to have more protection on the road.

What Does This Minimum Coverage Mean?

Having proof of insurance with you at all times is crucial. If you can't show your insurance card during a traffic stop, you may receive fines and penalties, especially if you get in an accident. A 30/60/25 coverage limit means your insurance covers the other party’s medical bills up to $60,000 per accident, with a $30,000 limit per individual. Damages to their property, such as their home or car, will also be covered up to $25,000.

Car insurance laws in Texas also require personal injury protection unless you explicitly reject it by signing a waiver. PIP coverage protects you by covering costs from medical bills and loss of income in a covered accident. It also applies to injured passengers during a collision. PIP in Texas covers the following:

Ambulance services
Rehabilitation therapy
Funeral services
Loss of wages due to the accident

Unless you waive this insurance, the minimum PIP coverage in Texas is $2,500, but you always have the choice to increase it for additional financial protection.

How Much Does the Minimum Car Insurance Cost in Texas?

Insurance carriers consider several factors to determine the cost of car insurance in Texas. These include your age and driving history, where you live in the state and even your credit score. Rates between car insurance carriers in Texas may also vary. After comparing policies from several car insurance companies, MoneyGeek found that Farmers offers the most affordable car insurance option in Texas at $420 per year.

These prices are only estimates based on rates for an average Texas driver and should not be used to compare insurance prices.

The rates are based on car insurance policies in Texas with the minimum coverage limits of 30/60/25 and a $2,500 PIP limit. MoneyGeek used the profile of a 40-year-old male with a 2010 Toyota Camry, a clean driving record and a good credit score.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Texas.

What Is the Minimum Car Insurance Requirement in Texas While Leasing a Car?

In Texas, you need to purchase car insurance even if you don’t own your car. Although car insurance laws in Texas require your policy to at least meet the state’s minimum coverage requirements, you may find that this isn’t enough for a leased vehicle. Most leasing companies expect you to have a full coverage car insurance policy with at least 100/300/50 liability limits. It means that on top of liability insurance, you also must have comprehensive and collision insurance.

The best way to determine car lease requirements in Texas is by contacting the financial leasing company directly. It's also your opportunity to find out other vital information, such as their terms and conditions, as well as other prerequisites they may have.

How much insurance do you need in Texas? Typically, it’s recommended you carry a policy with at least 50/100/50 limits instead of the state’s 30/60/25 requirement. Though this may cost more, it gives more protection than a plan that only meets the minimum insurance requirement in Texas. On top of protecting you from the usual liability risks, it also helps cover costs if the other driver happens to be uninsured. Although car insurance is mandatory in Texas, 8.3% of drivers are not covered.

Penalties for Driving Without Car Insurance in Texas

If you are pulled over and unable to show proof of insurance, there are many consequences to face, in addition to lacking coverage for potential liability risks.

Consequences for driving without adequate coverage vary by state, but they may range from fines to jail time. In Texas, these are the penalties for driving with no car insurance:

Fines ranging from $175 to $1,000, depending on the number of offenses you have on record
An annual surcharge of $250 for three years after the conviction
Vehicle impoundment for 180 days or until proof of insurance is provided
Suspension of vehicle registration and driver’s license for a maximum of 2 years
An SR-22 filing

The same penalties apply if your policy does not meet the minimum car insurance requirements in Texas.

When you purchase insurance, having a conviction on your record will result in higher annual premiums. Depending on the severity of your driving infractions, you may also need to file an SR-22 form to reinstate your driver’s license, which serves as proof to the state that your policy at least meets Texas’ minimum insurance requirements. An SR-22 also affects the cost of your insurance as you will be considered a high-risk driver.

Frequently Asked Questions About Car Insurance in Texas

Learn More About Car Insurance

About Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 11, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured Motorists." Accessed July 11, 2021.
Kelly Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed July 11, 2021.
Office of Public Insurance Counsel. "Understanding PIP vs. MedPay." Accessed July 8, 2021.
Texas Department of Insurance. "Automobile Insurance Guide." Accessed July 8, 2021.