Guide to Car Insurance 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.

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.

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.

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.

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.

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.