If you drive in Texas, you are legally required to show proof that you can cover the costs of any accident you cause. The state’s minimum insurance requirements often fall short of covering all damages. Our legal team at Shamieh Law can explain Texas’s insurance rules, how additional coverage may protect you, and what options you have if you’re in an accident involving different policies.
What Is The Minimum Auto Insurance Coverage Required in Texas?
Texas’s minimum auto liability insurance requirements are $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for property damage per accident. The Texas Department of Insurance calls this 30/60/25 coverage.
Having at least the minimum coverage will protect you financially if you cause an accident by paying the other driver’s car repair and medical bills, so the responsibility doesn’t fall on you.
| Coverage | What it covers | Minimum amount |
|---|---|---|
| Bodily injury liability per person | Injuries or death of one person in a crash you cause | $30,000 |
| Bodily injury liability per accident | Injuries or deaths of multiple people in one crash you cause are subject to the per-person limit | $60,000 total |
| Property damage liability per accident | Damage to other people’s vehicles or property in a crash you cause | $25,000 total |
Understanding Auto Insurance Requirements in Texas
Texas requires its drivers to have a minimum amount of insurance coverage to cover the costs of accidents they cause. Texas is an at-fault state, meaning the driver who causes the accident, or their insurer, is responsible for the damages.
Liability insurance pays to repair or replace the other driver’s car, or other damaged property, and pays other people’s medical expenses when you’re at fault in a Texas car accident.
Penalties for Driving Without Insurance
Driving without insurance or another legally accepted form of financial responsibility is a misdemeanor. Fines range from $175 to $350 for a first offense and $350 to $1,000 after a previous conviction. For a first offense, the court can reduce the fine below $175 if it finds you’re economically unable to pay.
What Does Minimum Texas Auto Insurance Cover?
Minimum liability insurance covers other people’s injuries and property damage when you cause a crash. It helps pay expenses such as medical bills and vehicle repairs, up to your policy’s limits. However, it does not cover your own injuries or damage to your car. Knowing that distinction can help you understand what protection you have and where additional coverage could help.
Bodily Injury Liability
Bodily injury liability pays covered expenses arising from other people’s injuries, such as medical bills and lost income. Minimum coverage pays up to $30,000 per person, subject to a $60,000 combined limit for everyone injured in one crash.
Property Damage Liability
Property damage liability pays to repair or replace other people’s damaged property. The $25,000 minimum limit applies to all covered property damage in one crash, including vehicles, fences, or buildings.
Exclusions and Limitations of Minimum Coverage
Minimum liability insurance pays only up to your policy’s limits and leaves some losses uncovered. Additional coverage can help pay for your own injuries, vehicle damage, and other expenses after a crash.
| Loss or Expense | Covered by Minimum Liability? | Additional Coverage That Can Help |
|---|---|---|
| Other people’s injuries or property damage you cause | Yes, up to applicable limits | Higher liability limits |
| Your medical bills | No | Personal injury protection or medical payments |
| Collision damage to your vehicle | No | Collision |
| Theft, hail, fire, or flood damage to your vehicle | No | Comprehensive |
| Injuries caused by an uninsured or underinsured driver | No | Uninsured/underinsured motorist |
Why isn’t the Minimum Car Insurance Coverage Enough in Texas?
Minimum coverage can fall short when a crash causes serious injuries or damages several vehicles. The costs can exceed your policy’s limits because of:
- High medical costs
- Serious injury cases
- Vehicle repair and replacement expenses beyond $25,000
- Risks of underinsurance
- Personal liability
If the injured party’s injuries require serious medical care, their medical expenses can quickly exceed $30,000. Your health insurance will only cover so much for anyone injured in a car accident, depending on your coverage and policy, and you may face out-of-pocket expenses.
What Are Other Additional Auto Insurance Coverage Options?
You can buy more liability coverage with a higher limit, which can reduce your out-of-pocket expenses in case of serious or multi-vehicle accidents. It’s recommended to consider expanding your liability coverage in Texas beyond the typical 30/60/25 coverage.
Other types of insurance you can have are:
- Collision coverage: Pays to repair or replace your vehicle after an accident
- Comprehensive coverage: Covers your vehicle if it is stolen or damaged by fire, flood, vandalism, or other non-collision events
- Medical payments coverage: Covers medical bills for you and passengers in your vehicle, and may also apply if you are injured in another person’s car or as a pedestrian or cyclist
- Personal injury protection (PIP): Included in all Texas policies unless waived in writing. Similar to medical payments coverage, but also covers lost wages and certain nonmedical costs
- Uninsured/underinsured motorist coverage: Pays if you are hit by a driver with no insurance, not enough insurance, or in a hit-and-run
- Towing and labor coverage: Helps pay the cost of towing your vehicle if it cannot be driven
- Rental reimbursement coverage: Pays for a rental car if your vehicle is stolen or being repaired after a covered accident
Personal injury protection (PIP) coverage is included in all Texas policies, unless you specifically waive it in writing. Additionally, insurers must offer this coverage, and you must reject it in writing if you don’t want it.
Tips to Lower Your Car Insurance Monthly Payment without Sacrificing Coverage in Texas
Your driving record, claims history, ZIP code, vehicle, and mileage affect your premium. Some insurers also consider credit information. To find savings:
- Compare equivalent policies: Get quotes with the same coverage limits and deductibles.
- Check discounts: Ask about savings for safe driving, bundling policies, or automatic payments.
- Update your mileage: Tell your insurer if you’re driving less or no longer commuting.
- Consider usage-based insurance: Mileage or driving habits could lower your rate. Check what the program tracks and how it affects pricing.
If you believe an insurer is treating you unfairly, you can file a complaint with the Texas Department of Insurance.
Let Us Help You Evaluate Your Auto Insurance Policy
Auto insurance policies in Texas are complex and can leave your coverage lacking or, in the event of an accident, insufficient. If you were in an accident with an uninsured or underinsured driver, you can still pursue compensation for your accident.
After an accident, an experienced car accident attorney can help determine the value of your claim and help you secure the compensation you deserve. If you’ve been injured in a car accident, contact Shamieh Law today or call 469-813-7332.