What Texas Car Insurance You Must Have by Law

Texas requires liability coverage, not collision or comprehensive

Texas law does not require you to carry collision or comprehensive coverage on your vehicle. You are required to carry liability insurance, which pays for damage or injuries you cause to someone else. The state sets minimum amounts: $30,000 per person for bodily injury, $60,000 per accident for bodily injury to multiple people, and $25,000 per accident for property damage.

These minimums are the floor. If you cause a wreck that injures three people and damages two cars, $30,000 per person and $25,000 for property damage can run out quickly. A single serious injury can cost far more. But Texas will not force you to buy more than these amounts — that choice is yours.

You do not need to carry uninsured motorist coverage, medical payments coverage, or collision coverage by law. However, if you financed or leased your vehicle, your lender will require collision and comprehensive as a condition of the loan or lease. If you own the car outright, those coverages are optional.

Key Takeaways

• Texas requires liability coverage with minimums of $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage.
• Collision and comprehensive coverage are not required by law, but your lender will require them if you financed or leased your vehicle.
• You can prove financial responsibility through an insurance policy, a surety bond, a cash deposit, or a self-insurance certificate if you own multiple vehicles.
• Driving without the required liability coverage can result in license suspension, vehicle impoundment, and fines up to $1,000.

How to prove you have the required coverage

Texas requires proof of financial responsibility at the time of a traffic stop or accident. You can show this proof in several ways. The most common is an insurance card or policy document from your insurer. Your insurance company will issue you a card to keep in your vehicle.

If you do not have an insurance policy, you can prove financial responsibility through a surety bond, a cash deposit held by the state, or a self-insurance certificate. The self-insurance certificate is available only if you own at least 25 vehicles registered in Texas. Most individual drivers use an insurance policy.

You must be able to show proof when ready if a police officer stops you. If you cannot, you can face a ticket even if you do have coverage. Some insurers now offer digital proof of insurance through a mobile app, which satisfies the requirement.

What happens if you drive without the required coverage

Driving without liability coverage in Texas is a misdemeanor. A first offense can result in a fine of $175 to $350, a license suspension of up to two years, and vehicle impoundment. The court may also order you to file an SR-22 form, which is a certificate of financial responsibility that your insurer files with the state to prove you maintain coverage going forward.

If you cause an accident while uninsured, you are personally liable for all damages. The other driver can sue you for medical bills, lost wages, vehicle repairs, and pain and suffering. A judgment against you can follow you for years and result in wage garnishment or bank account levies.

If you are caught driving without insurance a second time within three years, the penalties increase. Your license can be suspended for up to two years, and fines can reach $750. A third offense within ten years is a felony.

The difference between state minimums and what you actually need

The Texas minimum of $30,000 per person for bodily injury covers a minor injury or a single accident with limited damage. It does not cover a serious injury, multiple injured people, or significant property damage. A single hospitalization can easily exceed $30,000.

If you cause an accident that injures someone seriously, and your liability limit is $30,000, your insurance pays up to that amount and stops. The injured person can then sue you personally for the rest. This is called being underinsured, and it puts your wages, bank accounts, and future income at risk.

Many insurance agents recommend carrying higher limits — $100,000 per person and $300,000 per accident for bodily injury — especially if you have assets to protect or if you drive frequently. The cost difference between the state minimum and these higher limits is usually $10 to $30 per month.

When your lender requires more than the state minimum

If you financed your vehicle, your lender will require you to carry collision and comprehensive coverage in addition to liability. Collision covers damage to your own vehicle from a crash. Comprehensive covers damage from theft, weather, vandalism, and other non-collision events.

Your lender requires these because they have a financial interest in the vehicle. If you total the car in an accident and carry only liability, your lender loses the collateral for the loan. Collision and comprehensive protect their investment.

Your lender will also require you to carry liability limits higher than the state minimum — often $100,000 per person and $300,000 per accident. Check your loan documents or call your lender to confirm the exact requirements. If you drop these coverages without permission, your lender can purchase force-placed insurance on your behalf and charge you for it, which is more expensive than buying it yourself.

How Texas uses the SR-22 form

An SR-22 is a form your insurance company files with the Texas Department of Public Safety to certify that you maintain the required liability coverage. You do not file it yourself — your insurer does. The state uses it to monitor drivers who have been convicted of driving without insurance, DUI, or reckless driving.

If the court orders you to file an SR-22, you must maintain continuous coverage for the period the court specifies, usually three years. If your coverage lapses even for one day, your insurer must notify the state, and your license will be suspended again.

An SR-22 does not change the coverage you carry — it just tells the state that you have it. However, insurers typically charge a higher rate for drivers who need an SR-22, usually an additional $15 to $30 per month.

Frequently Asked Questions

Can I get a discount if I carry more than the state minimum?

No, insurers do not discount for carrying higher limits. However, the cost increase for doubling your limits is usually modest — often $10 to $30 per month. You pay more for the extra coverage, but the price per dollar of coverage is similar.

What if I have an accident and the other driver does not have insurance?

If you carry uninsured motorist coverage, your own insurer will pay for your injuries and vehicle damage up to your uninsured motorist limit. If you do not carry it, you would have to sue the other driver personally, which is difficult if they have no assets. Uninsured motorist coverage is optional in Texas but protects you against this scenario.

Do I need insurance if I only drive occasionally?

Yes. Texas requires liability coverage for any vehicle you drive on public roads, regardless of how often you drive. If you own a vehicle, you must carry coverage even if it sits in your driveway most of the time. If you do not drive, you can ask your insurer about a non-driver policy or cancel the policy entirely.

What if I let someone else drive my car?

Your liability coverage follows the vehicle, not the driver. If someone else drives your car with your permission and causes an accident, your insurance pays. If they drive without permission, your coverage may not explore. Always make sure anyone who drives your car is a licensed driver.

Can I use a payment plan if I cannot afford the full premium?

Most insurers offer monthly payment plans at no extra cost. Some charge a small fee for monthly payments. If cost is a barrier, ask your insurer about payment options, discounts for bundling home and auto insurance, or discounts for completing a defensive driving course.