Texas Minimum Coverage Car Insurance: Requirements and Costs (2024)

Texas drivers must adhere to the state's minimum car insurance requirements, which include $30,000 for bodily injury liability per person, $60,000 per accident and $25,000 for property damage liability. It's worth noting that Texas operates under an at-fault system, meaning the driver responsible for the accident covers the damage through their insurance.

The monthly cost for the state minimum coverage in Texas can be as low as $47, with variations depending on the insurer and individual driver profiles. Explore the cheapest car insurance companies in Texas to find a plan that meets these essential coverage levels without overpaying.

To legally drive a vehicle registered in Texas, drivers are required to have car insurance with at least the following liability limits:

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

Texas is a fault state, meaning insurance companies pay out according to each party’s degree of fault in an incident. Whether a state is a fault or a no-fault state impacts your insurance premium, as it determines how insurance claims are processed following an accident. In fault states, the driver at fault is responsible for covering the damages. In no-fault states, each person's insurance coverage pays for their own damages regardless of who caused the accident.

The table above is based on the Texas state minimum car insurance requirements, which mainly include liability coverage for bodily injury and property damage. Specific coverage details are subject to the terms and conditions of an individual's policy.

The table below illustrates the average cost of minimum coverage car insurance in Texas across different age groups, revealing how monthly and annual premiums vary with age. For example, Texas drivers aged 22 to 29 pay higher premiums than older adults, largely due to their higher risk of accidents.

In Texas, the most affordable options for state minimum coverage auto insurance are:

• Texas Farm Bureau: $339 per year; $28 per month
• State Farm: $390 per year; $32 per month

Although it's tempting to buy the cheapest possible car insurance, a minimum coverage policy may not provide adequate financial coverage in case of an accident. Explore the best car insurance in Texas for a comprehensive view of your options.

In Texas, optional car insurance add-ons include collision, comprehensive, uninsured/underinsured motorist, towing and labor, rental reimbursement and gap coverage. These options provide financial protection beyond state minimum coverage for various scenarios like accidents, theft or vehicle breakdowns. Understanding how much car insurance you really need can help you determine which coverages to add.

If you're caught driving without insurance in Texas, the exact penalty depends on whether it’s a first-time offense or a repeated violation. For first-time offenders, penalties often include fines and may escalate for subsequent violations. Repeat offenders can face increasingly severe consequences.

Additional penalties for driving without at least minimum coverage in Texas include:

• Vehicle impoundment: Your car may be taken away, and you'll have to pay costs related to its tow and storage.
• Vehicle registration suspension: Authorities can stop you from legally driving your car by suspending its registration.
• License suspension: Your driving privilege may be temporarily withdrawn, necessitating a fee to restore your license once eligible.
• SR-22 requirement: You might need to file an SR-22 — a document proving that you carry the required insurance — which will raise your insurance premiums for years.
• Jail: If involved in an accident without insurance, you could face up to six months in jail.

Carrying at least minimum coverage car insurance is necessary for protecting yourself and others on the road. Driving responsibly includes maintaining the proper insurance.

Drivers must quickly find new coverage after their car insurance policy ends or is canceled to avoid the legal and financial risks of driving uninsured. They should contact their insurance agent to explore reinstatement options or seek a new policy. Driving without insurance is illegal, and continuing to do so can result in fines, license suspension and vehicle impoundment.

The Texas Department of Motor Vehicles (DMV) will be notified of your uninsured status through the TexasSure vehicle insurance verification program. This system keeps track of all insured vehicles in the state, enabling law enforcement and the DMV to identify uninsured drivers.

For those facing difficulty in obtaining insurance, the Texas Automobile Insurance Plan Association (TAIPA) is available to help high-risk drivers secure the state minimum coverage. Drivers must only operate a vehicle with at least the required coverage to stay on the right side of the law and keep roads safe for everyone.

Texas drivers must understand their state's minimum car insurance requirements to meet legal obligations and protect themselves on the road. Here, we address common questions about policy minimums, coverage options and penalties for noncompliance in the Lone Star State.