Guide to Car Insurance in Texas

Everything you need to know about driving safely and legally in the Lone Star State

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Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.

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Last updated: May 14, 2026

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In Texas, all 19.1 million drivers are required to hold liability auto insurance coverage. The average cost of full coverage auto insurance in Texas is $2,821 annually, and $960 annually for minimum coverage.

Whether you are moving to Texas or have been living there for years, it is always a smart idea to brush up on the requirements and laws. We’ve gathered everything you need to know about driving safely and legally in Texas.

Your Texas Insurance Questions, Answered

Minimum Car Insurance Requirements in Texas

In Texas, you need to have insurance before operating a vehicle. Here are the minimum requirements in Texas:

$30,000 bodily injury per person
$60,000 bodily injury per accident
$25,000 property damage coverage¹

Texas car insurance laws require drivers to have bodily injury coverage and property damage coverage, which pays for the other party’s damages if your car causes an accident.

However, the minimum required limits aren’t always enough to cover damages in a major accident. To protect yourself, opt for 100/300/100 liability coverage, or $100,000 in bodily injury liability per person/$300,000 per accident, and $100,000 in property damage liability per accident.

Average Cost of Car Insurance in Texas

The cost of car insurance in Texas averages $2,821 per year for full coverage and $960 per year for minimum coverage. Compared to national rates, full coverage in Texas is about 20 percent higher than the national average, while minimum coverage is about 33 percent higher.

Like in most states, providers in Texas can use credit score and gender to determine your rates. Other factors that impact your premiums include your driving record, age, and zip code. Texas drivers tend to pay more for car insurance in dense metropolitan areas like Dallas or Houston.

Location	Monthly full coverage average	Annual full coverage average
Texas statewide	$235	$2,821
United States	$196	$2,356
Dallas	$269	$3,223
Houston	$266	$3,197
Arlington	$238	$2,854
San Antonio	$237	$2,843
Fort Worth	$231	$2,767
Plano	$230	$2,765
Brownsville	$226	$2,713
El Paso	$225	$2,703
Austin	$223	$2,676

Texas Car Insurance Laws

At-Fault State

Texas is an at-fault state, meaning that the at-fault party pays for both property damage and medical expenses.

If each of two parties is partially at fault, they can split the costs by their percentage of fault. Because Texas has a modified comparative negligence law, the accident victim’s recovery is reduced by their percentage of fault. If the injured party’s fault is 51 percent or more, they are not allowed to recover compensation.

Driving Without Insurance

While Texas mandates car insurance for all drivers on the road, about 14 percent of drivers in Texas are uninsured.² If you get caught driving without insurance in Texas, you face these consequences:

First offense: $175 to $350 fine
Second offense:
- $350 to $1,000 fine
- $250 surcharge for three years
- Suspension of your driver’s license and vehicle registration for two years from the subsequent conviction
- Possible car impoundment for 180 days³

To avoid getting a citation, it’s best to carry proof of insurance at all times. Texas accepts both digital and paper forms of insurance. If you’d rather keep your insurance digital, your provider may offer a mobile app. Otherwise, you can download a digital version of your auto ID card from your provider’s website.

DUI Laws

In Texas, DUIs stay on your record forever. When determining your rates, most insurance providers look back about five years for serious violations. Whether it is your first offense or you are a repeat offender, the consequences are no light matter.

DWI offense number	First	Second	Third
Maximum fine	$2,000	$4,000	$10,000
Amount of time in jail	3 days mandatory, up to 180 days	1 month-1 year	2-10 years
Loss of driver’s license maximum time	1 year	2 years	2 years⁴

Distracted Driving Laws

Texting and driving is illegal in Texas. Drivers under the age of 18 are banned from using their cell phones while driving, and some cities ban cell phone use while driving for all ages.⁵ If caught texting while driving, there will be a fine of up to $99 for your first offense and a fine of up to $200 for subsequent offenses.⁶

Seat Belt Laws

Texas requires all drivers to wear their seat belts at all times. Police can write you a citation for not wearing your seat belt regardless of whether you committed any other traffic violations, which means that the law is under primary enforcement.⁷

Teen Drivers

In Texas, teens need to follow certain restrictions to graduate to adult licenses by the time they turn 18. To apply for a learner’s license, they must be 15 years old. During this time, they are only allowed to drive under the supervision of a licensed adult who is 21 or older in the front seat.

FYI:

At 15 years old, teens can apply for minor restricted licenses if extenuating circumstances require them to drive on their own before they turn 16. Qualifying exemptions are the illness or disability of a family member, participation in a vocational training program, or unusual economic hardships.⁸

To get their provisional licenses, drivers must be 16 years old and have had their learner’s licenses for at least six months. Teens are allowed to drive independently, but they need to abide by a handful of restrictions. Driving with their provisional licenses, they cannot do the following:

Have more than one passenger who is under 21, excluding family
Drive between midnight and 5 a.m. unless traveling to or from a school function or work
Drive while using any type of mobile device, including a hands-free device

If they have any trace of alcohol in their system and are under 21 years old, Texas will suspend their licenses. Texas also suspends the licenses of minors convicted of buying, possessing, or consuming tobacco.

Teens can apply for adult licenses when they turn 18 if they follow all of the state’s teen driving laws.

Cancellation/Non-Renewal Notification Laws

Auto insurance companies cannot cancel policies that have been in place for 60 days or more unless the following conditions occur:

You don’t pay the premium.
You have committed fraud or misrepresentation on your application.
You have a revoked or suspended driver’s license.

Texas providers have 10 days to notify you of a midterm cancellation, regardless of whether or not it is due to nonpayment.

If a provider decides not to renew your policy, it has 30 days to inform you before the expiration date. The provider must give you notice and explain its reasoning for not continuing your policy before it drops it. Common reasons why providers drop policies are that the provider no longer offers that type of insurance, it doesn’t want to write as many policies in your area, or you have a drunk driving conviction.⁹

SR-22 Insurance in Texas

An SR-22 is a certificate of financial responsibility that shows you are meeting the state’s minimum insurance requirements. You’ll need an SR-22 in Texas in the following situations:

You have a suspended driver’s license due to a car crash.
You’ve received more than one conviction for having no motor vehicle insurance.
You’ve had a civil judgment filed against you two years from the date the decision was rendered.
You have excessive traffic violations or have accumulated a significant number of traffic tickets in a short time frame.
You’re convicted of certain driving infractions, such as reckless driving or fleeing the scene of an accident.

You must have an SR-22 for two years from your most recent conviction. If you don’t maintain an SR-22 for two years, you face additional enforcement actions or reinstatement fees.

Texas Automobile Insurance Plan Association

If you have multiple violations and can’t secure a policy, you can apply for state-mandated insurance through the Texas Automobile Insurance Plan Association (TAIPA). The organization guarantees minimum liability coverage for high-risk drivers.

In order to qualify, you must:

Have a valid driver license
Be a resident of Texas or have a vehicle registered in Texas
Certify that you’ve been rejected by two car insurance providers within the last 60 days¹⁰

How to Find Cheap Car Insurance in Texas

Although car insurance is more expensive than average, you can find cheap car insurance in Texas by:

Compare providers: Get quotes from multiple insurers to find the best rate for your desired coverage, especially regional carriers in Texas.
Increase deductibles: Reduce your monthly premium by increasing your deductibles for collision and comprehensive coverage.
Bundle insurance: Combine your auto and home insurance policies to get up to 25 percent off your insurance.
Telematics: Consider usage-based insurance programs if you drive fewer miles than average.

Recap

Texas requires drivers to carry minimum liability coverage of 30/60/25, but these limits may fall short in serious accidents, making higher coverage a smart consideration. Car insurance in Texas is more expensive than the national average, especially in urban areas.

As an at-fault state with modified comparative negligence, responsibility for accidents—and compensation—depends on each driver’s share of fault. Strict penalties apply for driving uninsured or under the influence, and high-risk drivers may need an SR-22 or coverage through the state’s assigned risk plan.

To manage costs, drivers can compare quotes, bundle policies, and adjust deductibles.

Frequently Asked Questions

What is the cheapest car insurance in Texas?

These providers are among the cheapest in Texas:

Texas Farm Bureau
USAA
GEICO
State Farm

However, the cheapest provider will vary by driver profile—to find the best rates, compare quotes from several providers.

How much is car insurance per month in Texas?

On average, car insurance in Texas is $235 monthly for full coverage and $80 monthly for minimum coverage. Exactly how much you pay depends on a number of factors, including your age, driving history, zip code, credit score, vehicle, and more.

Why is car insurance in Texas so expensive?

Insurance rates are so high in Texas because its cities are highly populated. According to the Texas Department of Transportation, more people drive in cities, which means accidents are more likely.

Not only is Texas second in the nation in terms of auto theft¹¹, but it has a higher rate of traffic fatalities in the country — two percent above the national average, according to the Insurance Institute for Highway Safety.¹² Accidents and traffic fatalities are two factors that increase insurance rates.

What car insurance is mandatory in Texas?

In Texas, you must have $30,000 per person and $60,000 per accident of bodily injury liability, and $25,000 in property damage liability.