Texas Auto Insurance Requirements

You can’t register a motor vehicle in Texas (or legally drive it, for that matter), without first obtaining an auto insurance policy. The state of Texas has a car insurance requirement in place so that all drivers can take financial responsibility for any damage they may cause during a crash. You make payments to an insurance company, which then pays for crash-related costs to the extent that your plan covers those costs.

There are many different types of auto insurance coverage offered by insurance companies, but the only kind required by Texas law is minimum liability insurance. This liability coverage is sometimes called a “30/60/25” plan and is considered the most basic coverage you can legally have. Your insurance provider will provide the following coverage:

  • $30,000 – bodily injury liability per person in a car accident
  • $60,000 – maximum amount your policy will cover for the collision / car accident
  • $25,000 – maximum amount of property damage that will be covered

Find an insurance policy that fits your needs and budget. Some insurance companies may even give you discounts for stuff like taking driver education or having a good record. Make sure you maintain auto insurance, and keep your proof of insurance status with you at all times. Try keeping a copy of your insurance info card in your glovebox and another copy in your wallet. You’ll need to have it in case you’re involved in a crash, a police officer asks to see it, or if you’re registering a vehicle.


Collision Coverage – This type of insurance helps cover the cost of repairing your car if your car is repairable. If your car is not repairable, you will be paid the actual cash value of your car which is the current value of your car – depreciation.

Comprehensive Coverage – This covers the cost of replacing or repairing your car if it's stolen, vandalized, damaged by fire, weather, or a collision. It also may pay for a rental car depending on the policy.

Medical Payment Coverage – This type of insurance helps pay for a medical bill that may result from an accident.

Personal Injury Protection (PIP) coverage – This is like medical payment coverage but it also covers lost income and the cost of hiring a caregiver for an injured individual.

Uninsured motorist coverage / Underinsured Motorist coverage (UM/UIM) - This covers you in the case that the other motorist is uninsured or does not have enough insurance.

Towing and Labor Coverage – This covers situations where your car can’t be driven and must be towed as well as when you have a flat tire or need a jump-start.