Texas car insurance, explained in plain English

What car insurance does Texas actually require?

The short answer: Texas law requires 30/60/25 liability coverage: $30,000 for each injured person, $60,000 per crash for injuries and $25,000 for property damage you cause.

The minimum comes from Texas Transportation Code §601.072 and is summarized in the Texas Department of Insurance auto insurance guide (updated December 2025). Texas is a fault-based state: the driver who causes a crash is responsible for the damage, which is why, in TDI's words, “Texas law requires drivers to show proof they can pay for the accidents they cause.” For most people, that proof is a liability policy.

Police, registration offices and courts check your coverage electronically through TexasSure, the state's insurance verification program. Your insurer reports your policy to it, so make sure the VIN on your policy matches the VIN on your registration — a mismatch is the most common reason a valid policy doesn't show up.

Why isn't the state minimum enough for most Texas drivers?

The short answer: Because 30/60/25 was set as a legal floor, not a recommendation — a single crash with a newer vehicle or more than one injured person can blow past it, and you're personally on the hook for the rest.

This isn't us upselling you: TDI's own guide says “the minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver's car is totaled.” When a claim is larger than your limits, the difference doesn't disappear. The other side can come after your savings, your wages or your home equity.

Higher liability limits protect what you've built, and they're usually one of the more affordable ways to add real protection. In our experience, the jump from the minimum to higher limits is often smaller than people expect — the only way to know for your situation is to price both.

Not sure what your limits are? Start a free review or call (512) 691-6400 and we'll read your declarations page with you.

What do PIP and uninsured motorist coverage do — and should you reject them?

The short answer: PIP pays medical bills and lost income for you and your passengers no matter who caused the crash; uninsured/underinsured motorist coverage pays when the other driver has no insurance or not enough. Texas includes PIP and requires UM/UIM to be offered — you can only turn them down in writing.

Personal injury protection (PIP) covers reasonable medical, hospital, ambulance and funeral costs, lost income, and household services for you, your household members and your passengers (Insurance Code §1952.151). Benefits are paid without regard to fault. Texas law doesn't require insurers to provide more than $2,500 of PIP per person, but higher limits are often available — check your declarations page for yours.

Uninsured/underinsured motorist (UM/UIM) coverage steps in when the driver who hits you has no insurance, too little insurance, or drives off. TDI notes a hit-and-run claim needs a police report, so call the police right away if the other driver leaves.

What does “full coverage” mean on a Texas auto policy?

The short answer: “Full coverage” isn't a legal term — it usually means liability plus collision and comprehensive, so your own car is covered too.

According to TDI, collision “pays to repair or replace your car after an accident,” and comprehensive pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision. Each has its own deductible. We explain why the label can be misleading in our full-coverage conversation.

That's why comprehensive matters so much here: TDI's hail claim guide notes hail damage to a car is covered when you carry comprehensive. Without it, dents and broken glass from a spring storm are yours to pay.

What drives the cost of car insurance in Texas?

The short answer: Your price comes mostly from your driving and claims record, where the car is kept, what you drive, how you use it, the coverage you pick and — with some insurers — your credit.

TDI lists the main rating factors: your driving record and claims history (most companies check a claims report called CLUE), where you keep the car — rates are generally higher in cities and can differ by ZIP code — the type of car, how you use it, and, for some companies, your credit. Since January 2026, a Texas law (SB 1644, per TDI Bulletin B-0012-25) also requires insurers that use credit to re-check it at least every three years.

Those are national figures from the National Association of Insurance Commissioners (report released February 2026) — not a Texas quote and not what you will pay. Your own price depends on the factors above, and the only way to know it is to price your actual drivers, cars and coverage.

How can you lower your premium without dropping coverage?

The short answer: Start with the levers that don't create gaps: deductibles you can actually afford, discounts you already qualify for, bundling, a clean driving record and an annual review.

• Tune your deductibles — carefully. A higher collision or comprehensive deductible lowers the premium, but only choose a number you could pay tomorrow without a credit card. More on that in what most people don't understand about deductibles.
• Ask about every discount you may qualify for. Safe-driving, multi-car, good-student, paid-in-full and automatic-payment discounts are common; availability and amounts depend on the policy and eligibility.
• Bundle home or renters with auto. Bundling can reduce what you pay overall. Texas law (SB 213, effective September 2025) also says an insurer can't require you to bundle. See our home and auto bundle page.
• Protect your driving record. Tickets and at-fault claims follow you for years and weigh heavily in the price.
• Review every year. Cars age, teens leave home, commutes change. A yearly coverage review catches discounts and gaps before renewal.

What if you need an SR-22 or you're adding a teen driver?

The short answer: An SR-22 is a certificate your insurer files with Texas DPS to prove you carry liability coverage, usually for two years; teen drivers bring their own licensing rules and usually a higher premium.

According to Texas DPS, an SR-22 can be required after events such as a crash-related suspension, a second or later conviction for driving without insurance, or an unpaid civil judgment from a crash. It must be kept for two years, it has to come from an insurance company (an insurance card isn't accepted in its place), and a non-owner SR-22 exists for drivers who don't own a car. DPS lists a $100 reinstatement fee.

For teens, Texas uses a graduated driver license program. Drivers under 18 with a provisional license may not carry more than one passenger under 21 who isn't family, may not drive between midnight and 5 a.m. except for work, school or emergencies, and may not use a wireless device — even hands-free. Adding a teen usually raises the premium, which is a good moment to look at liability limits and discounts together.

What should you have ready for a Texas car insurance quote?

The short answer: Your drivers' license details, each car's VIN, where the cars are kept, your current declarations page and an honest picture of tickets and claims — about five minutes of prep.

1. Gather driver details
   Names, dates of birth and license numbers for everyone in the household who drives.
2. Get each car's VIN
   It's on your registration, your current insurance card and the driver-side dashboard. Matching VINs keep TexasSure accurate.
3. Find your declarations page
   Your current limits, deductibles and any rejected coverages are the fastest way to quote an apples-to-apples policy — or a better one.
4. Note where each car is kept
   Garaging ZIP code affects price and must be accurate on the policy.
5. List tickets and claims honestly
   Insurers check driving and claims reports, so a surprise later can change the price.
6. Ask for a coverage review, not just a number
   We'll walk through liability, PIP, UM/UIM and deductibles with you. Start with the form on this page, use our guided quote, or call (512) 691-6400.