What car insurance is required in Texas?

If you drive in Texas, the law does not simply say "buy insurance." It says you have to be able to pay for the accidents you cause — and then lists the ways you're allowed to prove it. Auto liability insurance is how nearly everyone does it, but it isn't the only route, and the required amounts are specific numbers written into the statute rather than something each company decides.

Here's what we'll cover: the exact minimum limits Texas requires, what those three numbers actually pay for (and what they leave you exposed to), the five legal ways to establish financial responsibility, what counts as proof when you're pulled over, which coverages are optional but must be offered to you in writing, and the penalties in the statute for driving without any of it.

The requirement, in the state's own words

The Texas Department of Insurance (TDI) states the rule plainly: "Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance."

TDI's shorter version on its shopping page: "Texas law requires drivers to have a way to pay for accidents they cause."

Note what that does not say. It doesn't require you to insure your own car, your own injuries, or your own repairs. The mandatory part is about the harm you do to other people.

The magic numbers: 30/60/25

TDI: "Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage."

The same limits appear in the Texas Transportation Code. Sec. 601.072(a-1) sets "the minimum amounts of motor vehicle liability insurance coverage required to establish financial responsibility under this chapter" as "(1) $30,000 for bodily injury to or death of one person in one collision; (2) $60,000 for bodily injury to or death of two or more persons in one collision, subject to the amount provided by Subdivision (1) for bodily injury to or death of one of the persons; and (3) $25,000 for damage to or destruction of property of others in one collision."

Read as a sentence rather than a slash-separated code:

• $30,000 is the most the policy pays for one injured person.
• $60,000 is the most it pays for all injured people in a single crash, no matter how many there are.
• $25,000 is the most it pays for the property you damaged — usually the other car, but also a fence, a storefront, or a light pole.

TDI describes what that coverage does: "Liability coverage pays to repair the other driver's car if you caused the accident. It also pays the other driver's and his or her passenger's medical bills and some other expenses."

Where the minimum leaves you exposed

This is the part worth sitting with, because "meets the legal minimum" and "covers what you'd actually owe" are not the same statement.

TDI puts the practical ceiling this way: "The most a minimum liability policy will pay for car repairs is $25,000 ($60,000 for multiple cars) and $30,000 for medical bills."

New vehicles routinely cost more than $25,000. A single hospital stay can pass $30,000. If you cause a crash and the damage exceeds your limits, the policy stops at the limit — and the rest is a debt that belongs to you, not your insurer. That is not a loophole; it's how a liability limit works, and it's the reason many Texas drivers carry limits above the state minimum.

The minimum also does nothing for your own car. Liability pays the other driver. If your car is wrecked, stolen, flooded, or hit by someone with no insurance, none of that is covered by the mandatory part of the policy.

Five legal ways to meet the requirement

Insurance is the usual answer, not the only one. The Transportation Code (Sec. 601.051) states that a person "may not operate a motor vehicle in this state unless financial responsibility is established for that vehicle through: (1) a motor vehicle liability insurance policy that complies with Subchapter D; (2) a surety bond filed under Section 601.121; (3) a deposit under Section 601.122; (4) a deposit under Section 601.123; or (5) self-insurance under Section 601.124."

In plain terms, the alternatives to buying a policy are a surety bond, a deposit with the state comptroller, a deposit with the appropriate county judge, or a certificate of self-insurance. These exist mainly for fleets and unusual situations; for an ordinary household with one or two cars, a liability policy is the practical route.

What counts as proof when you're asked for it

The statute lists the acceptable evidence (Sec. 601.053(a)), and it's broader than the paper card in your glovebox. It includes "a motor vehicle liability insurance policy covering the vehicle that satisfies Subchapter D or a photocopy of the policy", "a standard proof of motor vehicle liability insurance form prescribed by the Texas Department of Insurance", "an image displayed on a wireless communication device that includes the information required by Section 601.081 as provided by a liability insurer", and "an insurance binder that confirms the operator is in compliance with this chapter" — as well as the certificates matching the surety bond, deposit, and self-insurance routes above.

The phone-screen option matters in practice: a current insurance card shown on your phone, supplied by your insurer, is listed in the statute alongside the paper version.

What Texas does not require you to buy — but must offer you

Two coverages sit in an unusual middle ground: not mandatory, but you can't quietly end up without them. You have to turn them down on purpose.

Personal injury protection (PIP). TDI: "All auto policies in Texas include PIP coverage. If you don't want it, you must tell the company in writing." What it does: "Personal injury protection (PIP) coverage is similar to medical payments coverage. It pays your and your passengers' medical bills. But it also pays for things like lost wages and other nonmedical costs."

Uninsured/underinsured motorist coverage. TDI: "Insurance companies must offer you this coverage. If you don't want it, you must tell the company in writing." What it does: "Uninsured/underinsured motorist coverage pays if you're hit by someone who didn't have insurance or didn't have enough to pay your medical and car repair bills."

That second one is the direct answer to a fair question about the state minimum — if the other driver only carried 30/60/25 and hurt you worse than that, this is the coverage that can respond. If you've rejected it, check whether that's still the decision you want.

The genuinely optional coverages

Everything else is your call, and TDI describes each one:

• Collision: "Collision coverage pays to repair or replace your car after an accident."
• Comprehensive: "Comprehensive (other than collision) coverage pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision." In a state with this much hail, that word flood — and the hail that comes with the same storms — is not a footnote.
• Medical payments: "Medical payments coverage pays your and your passengers' medical bills. It also pays if you're hurt while riding in someone else's car or while walking or biking."
• Rental reimbursement: "Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident."
• Towing and labor: "Towing and labor coverage pays to tow your car if it can't be driven."

If you have a car loan or lease, your lender will typically require collision and comprehensive regardless of what state law says — that's a contract term, not an insurance rule, but it has the same practical effect.

What a deductible changes

Collision and comprehensive come with a deductible, and TDI defines it simply: "A deductible is the amount of a claim that you must pay yourself."

The trade is direct — TDI: "A deductible is the amount you have to pay before the insurance company will pay a claim. The higher your deductible, the lower your premium." And the caution that belongs with it: "Switching to a higher deductible can lower your insurance premium," though it means paying more out of pocket when you do claim. Pick a number you could actually write a check for tomorrow.

What happens if you drive without it

The Transportation Code makes it an offense. Sec. 601.191(a): "A person commits an offense if the person operates a motor vehicle in violation of Section 601.051."

The fines are in the statute itself:

• First offense — Sec. 601.191(b): "Except as provided by Subsections (c) and (d), an offense under this section is a misdemeanor punishable by a fine of not less than $175 or more than $350."
• Repeat offense — Sec. 601.191(c): "If a person has been previously convicted of an offense under this section, an offense under this section is a misdemeanor punishable by a fine of not less than $350 or more than $1,000."
• Hardship — Sec. 601.191(d): "If the court determines that a person who has not been previously convicted of an offense under this section is economically unable to pay the fine, the court may reduce the fine to less than $175."

Those are the statutory fine ranges, and courts add costs and fees on top; consequences beyond the fine — such as effects on your license, registration, or vehicle — are handled under other parts of the law and by the agencies that administer them, so check with the court or agency handling your specific case rather than relying on a general figure.

The larger exposure usually isn't the fine anyway. Drive uninsured, cause a crash, and the entire cost of the other person's car and medical bills lands on you personally, with no limit and no insurer behind it.

If you're having trouble getting covered

Being turned down isn't the end of the road. TDI's guidance for drivers who can't find a company willing to write them points to the Texas Automobile Insurance Plan Association (TAIPA), the state's mechanism for drivers who can't get coverage in the standard market.

Before you land there, it's worth having someone shop the standard market properly — carriers differ significantly in what they'll accept, and a single decline is not the whole market's answer.

What to do with this

• Find your declarations page and read the liability line. If it says 30/60/25, you are at the state floor — decide deliberately whether that's where you want to be, not by default.
• Check whether you rejected PIP or uninsured motorist coverage in writing. If you don't remember doing it, ask your company what's actually on the policy.
• Confirm your proof of insurance is current, on paper or on your phone.
• Match your deductible to your savings, not to the lowest premium.
• If you have a loan or lease, verify you carry the collision and comprehensive your lender requires.

Key facts

• The minimum is 30/60/25. TDI: "Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage."
• The statute matches. Transportation Code Sec. 601.072(a-1): "(1) $30,000 for bodily injury to or death of one person in one collision; (2) $60,000 for bodily injury to or death of two or more persons in one collision, subject to the amount provided by Subdivision (1) for bodily injury to or death of one of the persons; and (3) $25,000 for damage to or destruction of property of others in one collision."
• The minimum has a hard ceiling. TDI: "The most a minimum liability policy will pay for car repairs is $25,000 ($60,000 for multiple cars) and $30,000 for medical bills."
• Insurance isn't the only legal route. Sec. 601.051 also allows a surety bond, a deposit with the comptroller, a deposit with the county judge, or self-insurance.
• Your phone counts as proof. Sec. 601.053(a) lists "an image displayed on a wireless communication device that includes the information required by Section 601.081 as provided by a liability insurer."
• PIP and uninsured motorist must be rejected in writing. TDI: "All auto policies in Texas include PIP coverage. If you don't want it, you must tell the company in writing," and "Insurance companies must offer you this coverage. If you don't want it, you must tell the company in writing."
• Driving uninsured is an offense punishable by a fine of "not less than $175 or more than $350" for a first offense, and "not less than $350 or more than $1,000" if previously convicted (Sec. 601.191).

Sources: Texas Department of Insurance — Auto insurance guide, Tips to help you shop for auto insurance, Ways to save money on car insurance, and Auto insurance. Texas Transportation Code, Chapter 601 — Motor Vehicle Safety Responsibility Act, Secs. 601.051, 601.053, 601.072, and 601.191. TDI's Help Line is 800-252-3439. This page is general information, not legal advice; coverage is subject to the terms of your own policy.

Take the next step

The legal minimum in Texas is a floor, not a recommendation — it's the least the state will let you carry, and on a modern repair bill or hospital bill it can run out fast. The useful question isn't "am I legal?" but "if I caused a serious crash tomorrow, where would my policy stop and my own money start?"

Let Credify check that for you. Credify is a licensed insurance agency in Texas, and we compare auto coverage across multiple licensed Texas carriers in one short form, with no obligation; each insurer remains responsible for its own products. If you want to know what to weigh besides price, how to compare auto insurance in Texas walks through the checks that make two quotes genuinely comparable. 📞 Talk to Credify 24/7.