Understanding Texas car insurance laws will help you ensure that you have the right coverage for your car.
Minimum Insurance Requirements in Texas
The minimum insurance coverage in Texas is as follows:
- $30,000 in bodily injury per person
- $60,000 in bodily injury per accident
- $25,000 in property damage per accident1
You may see this written as 30/60/25 coverage, an abbreviated version of the minimum liability coverage, such as bodily injury and property damage liability car insurance coverage. Uninsured/underinsured motorist coverage is not required, nor is rental car coverage, which entails the insurer paying for a rental car if yours is in the shop under a covered claim.
Driving Without Insurance Penalties
While Texas imposes a $175 penalty on drivers that don’t have insurance, this penalty is not as stiff as other states like Pennsylvania, where you pay a $300 fine and get your license and registration suspended.
Texas is an at-fault state. Being in an at-fault state means that if an accident is your fault, your bodily injury liability pays for the injuries of the other party, and your property damage liability pays for the damages to the other vehicle or property. Personal injury protection is elective, which means that you would cover your own injuries if another vehicle hits you rather than rely on their bodily injury liability protection.
There are other laws pertaining to drivers in Texas when it comes to auto insurance:
- Cancellation and nonrenewals: Insurance companies have 10 days to notify you of a cancellation and 30 days to notify you of a nonrenewal, prior to the expiration date.
- Statute of limitations for claims: You have two years to file a claim for either property damage or bodily injury after an accident.