Car insurance is a legal requirement in the Lone Star State.
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Liability coverage is the only required insurance in Texas, despite the fact that it’s a no-fault state. In this article, we’ll explain the minimum amount of car insurance you need to drive in Texas, and whether it’s really enough to protect you and your vehicle.
Texas requires only liability coverage, which breaks down into bodily injury coverage and property damage coverage. Both cover damage to the other party’s medical costs and vehicle damage costs in the event you caused a car accident. Here are the minimum liability limits the Texas law requires:
The minimum amount of coverage in Texas is not enough to protect drivers from a financial strain in the event of an at-fault accident. The average cost of solely property damage from a collision is $4,600; however, it raises up to $23,400 with a possible injury, $28,500 with an evident injury, $98,400 with a disabling injury, or over $1.7 million with a death.2
Therefore, we recommend obtaining $500,000 limits for both bodily injury and property damage coverage, along with these coverage options:
An estimated 8 percent of Texas drivers — totaling nearly 1.5 million3 — were uninsured in 2019, despite the legal requirement.
In Texas — as in most of the United States — car insurance follows the car, not the driver.
If you buy a new car, you’ll need to either purchase a completely new policy or add the new vehicle to your existing insurance policy. While you can technically buy a car without insurance, you won’t be able to drive it off the lot until you show proof of liability coverage.
Some insurance policies include borrowed car coverage, meaning it covers anyone who drives the car with permission. Look for a permissive driver clause in the policy to ensure you’re not going to be liable for any damages or injuries.
The majority of U.S. car insurance policies don’t cover driving in Mexico, even though it borders Texas. To gain coverage there, you would need to buy a policy specific to Mexico.4
You need either digital or physical proof of insurance on hand whenever you’re driving in Texas. Otherwise, you could get in trouble for driving without insurance.
Collision and comprehensive coverage, unlike your liability coverage, will include deductibles. This means that you’ll be responsible to pay your deductible before your coverage begins. Once you’ve reached your deductible, your insurance company will contribute money up to your limit.
The average deductible is $500, although they can reach $2,000.
They say everything is bigger in Texas, and that includes car insurance premiums.
On average, Texans pay 6 percent more than the rest of the U.S. at $1,143.85 annually, which breaks down into these coverages:
However, the cost of insurance in Texas ranges from $450 to $7,284.81 for new drivers. Consequently, the cost of car insurance varies by driving history and experience.
Here are some other factors that affect car insurance rates:
Look to these providers for the cheapest car insurance in Texas:
Let’s brush up on some other car insurance laws in the nation’s second-largest state.
If your insurance carrier wants to cancel or not renew your policy, it must let you know a certain period of time before the expiration date.
Teens driving in Texas will be part of the Graduated Driver License (GDL) program, which has two phases.
Texas is a no-fault state; therefore, in an accident, each party is responsible for their own medical costs. Still, the at-fault driver is responsible for property damage. Learn more about liability vs. no-fault states.
You need car insurance to register your car in Texas, whether it’s a new registration or a renewal.
|Vehicle type||Weight (in pounds)||Registration fee|
|Mopeds and motorcycles||Any||$30|
|Trailers||Up to 6,000||$45|
|Cars and light pickup trucks||Up to 6,000||$50.75|
|Heavy trucks||Over 80,000||Varies9|
Texas may be the second-biggest state, but it’s not so big when it comes to car insurance requirements. You can get away with liability coverage on its own if you’re looking to save money. Of course, we recommend full coverage. Learn more about car insurance in Texas, or read our car insurance FAQs for more information.
Automobile insurance guide. Texas Department of Insurance. (2022).
Costs of Motor-Vehicle Injuries. National Safety Council Injury Facts. (2022).
One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar 22).
Does My Car Insurance Cover Me In Canada And Mexico? GEICO Living. (2022).
Transportation Code: Title 7. Vehicles And Traffic – Subtitle D. Motor Vehicle Safety Responsibility – Chapter 601. Motor Vehicle Safety Responsibility Act. Texas Statutes. (1995, Sep 1).
2018/2019 Auto Insurance Database Report. National Association of Insurance Commissioners. (2022).
NICB Releases Annual ‘Hot Wheels’ Report: America’s Top Ten Most Stolen Vehicles. National Insurance Crime Bureau. (2021, Oct 12).
Graduated Driver License (GDL) Program. Texas Department of Public Safety. (2022).
Register Your Vehicle. Texas Department of Motor Vehicles. (2022).