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Texas Car Insurance Requirements

Texas requires car insurance, but the minimums aren't enough. Here's what you need to know to actually protect yourself.

Updated: February 2026 • 7 min read

Texas Minimum Insurance Requirements

Texas follows a "30/60/25" minimum liability requirement:

$30,000
Bodily injury per person
$60,000
Bodily injury per accident
$25,000
Property damage

⚠️ Minimums Aren't Enough

A single hospital visit can exceed $30,000. A serious injury can easily top $100,000. If you cause an accident and your insurance doesn't cover the damages, you're personally liable for the difference.

Types of Car Insurance Coverage

Liability Coverage (Required)

Pays for damage and injuries you cause to others. Does NOT cover your own injuries or vehicle damage.

Collision Coverage (Optional)

Pays to repair your vehicle after a crash, regardless of fault. Subject to your deductible.

Comprehensive Coverage (Optional)

Covers non-collision damage: hail, theft, flooding, vandalism, hitting an animal.

Uninsured/Underinsured Motorist (UM/UIM)

Critical coverage. Pays your medical bills if hit by an uninsured driver or one with insufficient coverage. ~20% of Texas drivers are uninsured.

Personal Injury Protection (PIP)

Covers your medical expenses regardless of fault. Pays out faster than waiting for the at-fault driver's insurance.

Medical Payments Coverage (MedPay)

Similar to PIP but covers only medical expenses (not lost wages). No-fault coverage for you and passengers.

Recommended Coverage Levels

Insurance professionals generally recommend at least:

  • Liability: 100/300/100 ($100K/$300K/$100K)
  • UM/UIM: Match your liability limits
  • Collision: If your car is worth more than ~$5,000
  • Comprehensive: Essential in hail-prone Texas
  • PIP or MedPay: At least $5,000-$10,000

Why Uninsured Motorist Coverage Is Critical

About 1 in 5 Texas drivers is uninsured. If an uninsured driver hits you:

  • Without UM coverage: You're stuck with your own medical bills
  • With UM coverage: Your insurance pays as if you'd been hit by an insured driver
  • Hit and runs: UM coverage applies since you can't collect from an unknown driver

What Happens If You're Underinsured?

If you cause an accident and damages exceed your coverage:

  • Insurance pays up to your policy limits
  • The injured party can sue you personally for the rest
  • Your wages can be garnished
  • Your assets (home, savings) can be seized
  • The judgment can follow you for years

Texas Insurance Rules to Know

  • Proof of insurance required: Must carry in your vehicle at all times
  • Electronic proof accepted: Insurance app on your phone is valid
  • UM coverage automatically included: Unless you reject it in writing
  • Comparative fault: Texas uses 51% rule - you can't recover if more than 50% at fault
  • Two-year statute of limitations: For personal injury claims

How to File an Insurance Claim

  1. 1. Report the accident to police – Get a crash report
  2. 2. Notify your insurance – Even if the other driver is at fault
  3. 3. Document everything – Photos, medical records, receipts
  4. 4. Get your crash report – Set up free monitoring
  5. 5. Don't accept quick settlements – Initial offers are usually too low
  6. 6. Consider an attorney – For serious injuries or disputed claims

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