Texas Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: Texas Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: Texas Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

Texas requires minimum coverage car insurance with liability limits of 30/60/25 for all drivers. The average annual cost for minimum coverage in Texas is $782, or about $65 per month.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Myjel Guevarra

Updated: October 31, 2024

Advertising & Editorial Disclosure

Texas drivers must adhere to the state's minimum car insurance requirements, which include $30,000 for bodily injury liability per person, $60,000 per accident and $25,000 for property damage liability. It's worth noting that Texas operates under an at-fault system, meaning the driver responsible for the accident covers the damage through their insurance.

Car insurance is mandatory in Texas, and obtaining the minimum coverage is essential to comply with state laws. The monthly cost for minimum coverage car insurance in Texas is about $65. Explore the cheapest car insurance in Texas to find a plan that meets these essential coverage levels without overpaying.

TABLE OF CONTENTS

Texas Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Texas
Cheapest Companies in Texas for Minimum Coverage
Add-On Coverages in Texas
Penalties for Driving Without Insurance in Texas
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Texas Department of Insurance to give you the most accurate cost data for a range of Texas drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Texas as of November 2024.

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Texas Minimum Coverage Car Insurance Requirements

To legally drive a vehicle registered in Texas, drivers are required to have car insurance with at least the following liability limits:

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

Texas is a fault state, meaning insurance companies pay out according to each party’s degree of fault in an incident. Whether a state is a fault or a no-fault state impacts your insurance premium, as it determines how insurance claims are processed following an accident. In fault states, the driver at fault is responsible for covering the damages. In no-fault states, each person's insurance coverage pays for their own damages regardless of who caused the accident.

DOES TEXAS REQUIRE COLLISION AND COMPREHENSIVE COVERAGE?

No, Texas does not require drivers to carry collision or comprehensive coverage (also known as full coverage insurance). However, financing or leasing companies often stipulate these coverages in their contracts to protect their financial interest in the vehicle. This means if you're still paying off your car or leasing, you're likely required to have both collision and comprehensive insurance.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table above is based on the Texas state minimum car insurance requirements, which mainly include liability coverage for bodily injury and property damage. Specific coverage details are subject to the terms and conditions of an individual's policy.

Average Cost of Minimum Coverage Car Insurance in Texas

Many factors are considered in determining the cost of minimum car insurance rates, but age is the most common. In Texas, drivers aged 22 to 29 face the highest premiums due to their limited driving experience and higher likelihood of accidents.

The table below shows the average minimum coverage cost in Texas for each age group, illustrating how premiums vary depending on age.


22-29	$1,033	$86
30-59	$782	$65
60 +	$792	$66

Cheapest Companies for Minimum Coverage Car Insurance in Texas

In Texas, the most affordable options for state minimum coverage auto insurance are:

Texas Farm Bureau: $339 per year; $28 per month
Mercury: $423 per year; $35 per month

Although buying the cheapest possible car insurance is tempting, a minimum coverage policy may not provide adequate financial coverage in case of an accident. Explore the best car insurance in Texas for a comprehensive view of your options.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Texas Farm Bureau	$339	$28
Mercury	$423	$35
State Farm	$434	$36
Progressive	$592	$49
AAA Texas	$658	$55
National General	$715	$60
Allstate	$772	$64
GEICO	$788	$66
Chubb	$942	$78
Foremost	$1,041	$87
Nationwide	$1,061	$88
Dairyland	$1,621	$135

Optional Add-On Coverages in Texas

In Texas, optional car insurance add-ons include collision, comprehensive, uninsured/underinsured motorist, towing and labor, rental reimbursement and gap coverage. These options provide financial protection beyond state minimum coverage for various scenarios like accidents, theft or vehicle breakdowns. Understanding how much car insurance you really need can help you determine which coverages to add.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the vehicle's breakdown site.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use, like your daily commute.

Penalties for Driving Without Insurance in Texas

If you're caught driving without insurance in Texas, the exact penalty depends on whether it’s a first-time offense or a repeated violation. For first-time offenders, penalties often include fines and may escalate for subsequent violations. Repeat offenders can face increasingly severe consequences. Additional penalties for driving without at least minimum coverage in Texas include:

Vehicle impoundment: Your car may be taken away, and you'll have to pay costs related to its tow and storage.
Vehicle registration suspension: Authorities can stop you from legally driving your car by suspending its registration.
License suspension: Your driving privilege may be temporarily withdrawn, necessitating a fee to restore your license once eligible.
SR-22 requirement: You might need to file an SR-22 — a document proving that you carry the required insurance — which will raise your insurance premiums for years.
Jail: If involved in an accident without insurance, you could face up to six months in jail.

Carrying at least minimum coverage car insurance is necessary for protecting yourself and others on the road. Driving responsibly includes maintaining the proper insurance.

What to Do if Your Policy Is Canceled

Drivers must quickly find new coverage after their car insurance policy ends or is canceled to avoid the legal and financial risks of driving uninsured. They should contact their insurance agent to explore reinstatement options or seek a new policy. Driving without insurance is illegal, and continuing to do so can result in fines, license suspension and vehicle impoundment.

The Texas Department of Motor Vehicles (DMV) will be notified of your uninsured status through the TexasSure vehicle insurance verification program. This system keeps track of all insured vehicles in the state, enabling law enforcement and the DMV to identify uninsured drivers.

For those facing difficulty in obtaining insurance, the Texas Automobile Insurance Plan Association (TAIPA) is available to help high-risk drivers secure the state minimum coverage. Drivers must only operate a vehicle with at least the required coverage to stay on the right side of the law and keep roads safe for everyone.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Texas may have been canceled for a few reasons:

Non-Payment of Premium: If you fail to pay your insurance premium on time, the company can cancel your policy.
License Suspension: If your driver's license is suspended, an insurer may cancel your policy since you can't legally drive.
Fraud or Misrepresentation: Providing false information or hiding facts can lead to cancellation.
Too Many Claims: Filing several claims in a short period can be a red flag, possibly resulting in cancellation.

Remember to maintain a clean driving record and pay your premiums to keep your coverage active.

FAQ: Texas Minimum Coverage Car Insurance

Texas drivers must understand their state's minimum car insurance requirements to meet legal obligations and protect themselves on the road. Here, we address common questions about policy minimums, coverage options and penalties for noncompliance in the Lone Star State.

What is the minimum car insurance coverage in Texas?

In Texas, the minimum car insurance coverage required by law is known as 30/60/25, which includes $30,000 for bodily injury per person, up to a total of $60,000 per accident and $25,000 for property damage per accident. This basic minimum coverage is essential for complying with state regulations.

Why does Texas require minimum automobile liability coverage for motorists?

Texas requires minimum automobile liability coverage to ensure motorists can cover costs associated with damages and injuries they may cause in an at-fault accident. This financial responsibility helps protect other drivers and property owners from incurring expenses that the responsible driver cannot afford, promoting a safer driving environment.

Do you need comprehensive insurance in Texas?

Although comprehensive insurance is not mandated by Texas law, it is recommended for additional protection. Comprehensive coverage helps pay for non-collision-related damages to your vehicle — such as theft, vandalism or weather-related incidents — offering a broader safeguard beyond the minimum coverage required.

What happens if you drive uninsured in Texas?

Driving uninsured in Texas is illegal and can result in severe penalties. If caught, you could face fines up to $350 for a first offense, and subsequent offenses can lead to fines of up to $1,000, suspension of your driver's license and vehicle impoundment. You would also be financially responsible for any damages or injuries you cause in an accident.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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