What Is the Minimum Car Insurance Required in Texas?

If you’re driving in Texas, you must have car insurance that meets the state’s minimum legal requirements before you get behind the wheel. Texas law doesn’t just suggest coverage, it requires you to prove you can pay for others’ injuries and property damage if you cause an accident.

In plain terms, the minimum car insurance required in Texas is called 30/60/25 liability coverage (Via Texas Department of Insurance): 

• $30,000 for bodily injury per person 
• $60,000 total bodily injury per accident 
• $25,000 for property damage per accident

This means your insurance must be able to help pay other people’s medical bills and property damage up to those amounts if you are legally at fault. 

In the rest of this article, you’ll learn precisely what these numbers mean, whether this minimum is enough for you, and what else to consider so you stay legal and protected. 

What Does Texas Law Require to Be “Financially Responsible”?

In Texas, being a driver comes with a legal responsibility: you must show you can pay for damages or injuries if you cause a crash. This is called financial responsibility, and it’s not optional. Driving without it can lead to fines, license suspension, or even vehicle impoundment. 

Financial responsibility can be established in a few ways. The most common is carrying minimum liability insurance. Other options include filing a surety bond, making a cash or securities deposit with the state, or qualifying for self-insurance if you operate a large fleet of vehicles. 

The law is designed to protect everyone on the road. It ensures that if you’re at fault in an accident, there’s a legal and financial mechanism to cover other drivers’ medical costs, property damage, and personal injury claims. In essence, it’s about keeping roads safer and making sure accidents don’t leave victims unpaid. 

Texas Minimum Liability Coverage Explained

When you buy auto insurance in Texas, the state requires that your policy include a minimum amount of liability coverage. This is often written as 30/60/25, and it protects other people, not you, when you’re at fault in a car accident. Let’s break down what those numbers actually mean. 

Bodily Injury Liability Limits ($30,000 per person / $60,000 per accident)

Texas law says your policy must pay up to $30,000 for bodily injury per person and up to $60,000 per accident if more than one person is hurt. 

This covers the medical bills, lost wages, and pain and suffering of others involved in a crash you cause. 

For example, if you rear-end another car and injure two people, your insurance could pay up to $30,000 for each person, but no more than $60,000 total. Anything above those amounts becomes your responsibility. 

That’s why many drivers on Reddit and insurance forums call these limits “bare minimums,” not realistic coverage for today’s medical costs. 

Property Damage Liability ($25,000 per accident)

The third number in the 30/60/25 formula is $25,000, which covers property damage liability. This pays for repairs or replacement of someone else’s vehicle, fence, home, or other property if you cause the damage. 

But here’s the catch: $25,000 doesn’t go far. The cost of fixing or replacing newer vehicles, like a Tesla or luxury SUV, can exceed that limit easily. If that happens, your insurance pays up to $25,000, and you pay the rest out of pocket. 

Why These Numbers Matter (and Real Scenarios)

The 30/60/25 coverage limits haven’t changed in years, even though repair and healthcare costs have skyrocketed. On Reddit threads and local forums, Texas drivers often share stories of crashes where minimum coverage fell short. 

For instance: 

• A driver caused a three-car collision that injured four people. Their policy maxed out at $60,000, but total hospital bills exceeded $90,000. The driver was sued for the remaining balance. 
• Another user shared how their $25,000 property damage limit barely covered half the cost of a totaled BMW, leaving them with a $20,000 personal liability bill.

These examples show why minimum coverage meets the legal requirement, but not necessarily real-world protection. The numbers might keep you legal, but not always safe financially.

Minimum Car Insurance Requirements in Texas for Financed and Leased Vehicles

If your vehicle is financed or leased, you’re not just following Texas law. You’re also bound by the rules set by your lender or leasing company. And those rules usually go far beyond the state’s minimum auto insurance requirements. 

Texas only requires 30/60/25 liability insurance to stay legal on the road. But lenders and leasing companies want to protect the vehicle’s full value, since they technically own it until you finish paying it off. That’s why most of them require you to carry full coverage, which includes: 

• Collision coverage: pays to repair or replace your car if it’s damaged in a crash, regardless of fault. 
• Comprehensive coverage: protects against non-crash events like theft, fire, vandalism, hail, or falling objects.

These coverages ensure the lender’s financial interest in the car is protected. If the vehicle is totaled, the insurance payout helps settle your loan balance instead of leaving you with unpaid debt. 

Some lenders may also require gap insurance, which covers the difference between what you owe on the loan and the car’s actual cash value after a total loss. Without it, you could still owe thousands even after your insurer pays the claim. 

So, always review your loan or lease terms carefully before adjusting your coverage. If you drop collision or comprehensive coverage too soon, your lender could add expensive “force-placed insurance” to your account, and you’ll pay the cost. 

Alternatives to Traditional Insurance to Meet Legal Requirements in Texas

While most Texas drivers prove financial responsibility by carrying liability insurance, state law allows other legal ways to meet the same requirement. These options are rare but valid if you qualify, and they’re listed under Chapter 601 of the Texas Transportation Code.   

Surety Bond or Cash Deposit with the State

If you don’t want a standard auto insurance policy, you can file a surety bond or make a cash or securities deposit with the state. 

A surety bond must be filed jointly with at least two property owners (sureties) who have real estate in Texas. The bond promises to cover the same amount of damages as the state’s minimum insurance limits—$30,000/$60,000/$25,000. 

Alternatively, you can deposit $55,000 in cash or securities with the Texas State Comptroller or the county judge where your vehicle is registered (Transportation Code, Sec. 601.123). This money acts as proof that you can pay for bodily injury or property damage if you cause an accident. 

These methods technically satisfy the law, but they’re not practical for most everyday drivers. You must prove the funds or bond remain available at all times, which can be cumbersome. 

Certified Self-Insurance (for Large Fleets)

Large businesses or government entities that operate 25 or more vehicles may qualify for self-insurance certification through the Texas Department of Public Safety (DPS). 

Instead of paying monthly insurance premiums, these organizations guarantee they’ll cover any injury or property damage caused by one of their vehicles, up to the same minimum coverage limits set by law. 

This option is mainly for corporations, government agencies, and large commercial fleets. Individuals or small businesses usually don’t meet the financial threshold to qualify. 

Pros & Cons of These Alternatives

Pros 

• Can fulfill the legal requirement without buying a traditional policy 
• Suitable for large, financially stable organizations 
• Avoids dealing with private insurers and rate increases

Cons 

• Not realistic for most drivers—requires high cash deposits or property guarantees 
• No extra protection beyond the legal minimum 
• Complicated to maintain and prove compliance

Optional Coverages Beyond Minimum (Why They Matter)

Apart from just liability insurance, different types of car insurance coverage are available for you in Texas. These are mostly optional unless your car isn’t leased or financed. Even if your lender doesn’t require them, they can be very crucial in some scenarios, and many experts often recommend carrying some of these coverages from a reliable and affordable insurance agency in Texas. 

To safeguard yourself and your vehicle against unforeseen events, such as accidents, animal collisions, storms, floods, theft, fire, vandalism, or crashes involving uninsured or underinsured drivers, you may consider these optional coverages: 

Collision & Comprehensive Coverage

Collision coverage pays to repair or replace your vehicle if it’s damaged in a crash, regardless of who caused it. 

Comprehensive coverage protects your car from non-crash incidents, like theft, vandalism, hail, fire, or hitting an animal. 

As has been said, lenders usually require both for financed or leased vehicles because they safeguard the car’s full value. But even if your car is paid off, these coverages are worth considering if you can’t easily afford major repairs or replacement. 

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Despite Texas law, not everyone on the road carries insurance. If you’re hit by someone with no insurance or too little coverage, UM (Uninsured motorist coverage)/UIM (Underinsured motorist coverage) steps in to pay for your medical expenses, lost wages, and vehicle damage. 

It’s one of the smartest add-ons in Texas. According to the Insurance Information Institute site IRC study reveals that nearly 14.5% of Texas drivers are uninsured in 2023. So, this protection can be the difference between being made whole and being left with the bill. 

MedPay or PIP (Personal Injury Protection)

Both Medical Payments (MedPay) and Personal Injury Protection (PIP) cover medical bills for you and your passengers, regardless of who caused the accident. 

The main difference? PIP is broader. It can also cover lost income and essential services (like childcare) if you can’t work due to injuries.  

Every Texas auto policy automatically includes $2,500 of PIP coverage, but you can choose more or reject it in writing if you don’t want it. 

Having either MedPay or PIP ensures you’re not relying solely on health insurance or other drivers to pay your immediate medical costs after a crash. 

How to Choose the Right Add-Ons

The best mix of coverage depends on your situation, your car’s value, your budget, and your comfort with risk. Here’s a quick guide: 

• If you can’t afford major repairs, consider collision and comprehensive. 
• If you drive often in urban or high-traffic areas, add UM/UIM coverage. 
• If you don’t have strong health insurance, keep or increase PIP coverage. 
• For older cars worth less, you might safely skip full coverage, but weigh the risk.

Learn more about how much coverage do you need for auto insurance. 

Practical Consequences of Only Minimum Coverage

Carrying the minimum car insurance required in Texas keeps you legal. However, it might not keep you protected when things go wrong. The 30/60/25 liability limits were set years ago, and while costs have risen dramatically since then, the law hasn’t caught up. 

For many Texas drivers, this creates a dangerous gap between what insurance pays and what accidents actually cost. Here’s what that looks like in practice. 

What Minimum Coverage Won’t Protect You Against

The minimum policy pays only for other people’s injuries and property damage when you’re at fault. It doesn’t cover: 

• Your own medical bills or lost wages 
• Damage to your vehicle 
• Rental car costs while your car is repaired 
• Non-collision losses like theft, vandalism, hail, or flood

In short, if you cause an accident, or even if you’re hit by an uninsured driver, minimum coverage can leave you paying out of pocket for your own vehicle repairs, medical expenses, and transportation costs.

Out-of-Pocket Risk When Limits Aren’t Enough

If the damage or medical costs you cause exceed your coverage limits, your insurer pays up to your policy’s cap, and you’re responsible for the rest. 

Example: you cause a crash that injures three people and totals another driver’s car. The hospital bills reach $95,000, and the vehicle costs $40,000 to replace. Your 30/60/25 policy covers $60,000 for bodily injury and $25,000 for property damage, which leaves you with a $50,000 gap to pay personally. 

That financial exposure can lead to wage garnishment, asset seizure, or lawsuits if victims seek the remaining damages. Many Texas drivers on Reddit warn others that “minimum coverage” only keeps you legal, not safe. 

How Liability Limits Affect Lawsuits and Premiums

Lower liability limits can also affect you long after an accident. If you’re sued for damages that exceed your coverage, your personal assets, like savings, property, or future income, can be at risk. 

In addition, if you’re involved in multiple claims or at-fault accidents, insurers may view you as higher risk, which can drive your premiums up. Some may even require higher liability limits or deny renewal entirely. 

Higher limits cost a little more up front but protect far more in the long run. Think of it as buying peace of mind, especially in a state like Texas, where medical care and repair costs keep climbing. 

How to Show Proof of Insurance

In Texas, you must be able to show proof of insurance anytime a police officer asks for it—during a traffic stop, vehicle registration, or accident. Your proof must list your insurance company, policy number, coverage dates, and vehicle information. 

Texas law allows both physical and digital proof. You can show a printed insurance card or display it on your phone through your insurer’s app or email. As long as it clearly shows active coverage, either form is legally valid. Keeping quick access to it helps you avoid fines or registration delays. 

Average Costs for Minimum Coverage in Texas (2026)

On average, Texans who choose only the minimum car insurance required in Texas—liability coverage, also called 30/60/25, tend to pay significantly less than those with full coverage. According to 2026 Bankrate data, the average cost of minimum liability policies in Texas is roughly $786 per year (about $66 per month). 

However, some sources report slightly higher liability-only averages around $118 to $119 per month, depending on insurer rates and driver profiles. 

Your actual premium can vary a lot based on a few key factors, including: 

• Driving history – accidents or tickets can raise rates. 
• Age and experience – younger drivers usually pay more. 
• Location – urban areas often cost more than rural ones. 
• Vehicle type – expensive or high-performance cars cost more to insure. 
• Credit score and discounts – better scores and eligible discounts can lower premiums.

Because state minimum coverage only protects others, it’s the cheapest legal option, but it also offers the least financial protection for you.

Key Takeaways

• Texas law requires all drivers to carry 30/60/25 liability insurance, $30,000 per person, $60,000 per accident, and $25,000 for property damage. 
• The minimum coverage only protects others, not your own vehicle or medical costs. 
• You can show financial responsibility with a surety bond, $55,000 deposit, or self-insurance, though these options are uncommon. 
• Financed or leased cars must have full coverage, including collision, comprehensive, and often gap insurance. 
• Optional coverages like UM/UIM, PIP, and comprehensive offer broader protection against uninsured drivers and damage. 
• Minimum limits may leave you paying thousands out of pocket or facing lawsuits after major accidents. 
• The average cost for minimum coverage is $66 per month, depending on driver and vehicle factors. 
• Keep proof of insurance handy, printed or digital, for traffic stops or registration. 
• 30/60/25 keeps you legal, but higher limits and add-ons keep you financially secure.

Minimum Auto Insurance Requirements in Texas FAQs

Does Texas require full coverage car insurance or just liability? 

Texas only requires liability insurance. However, lenders often require full coverage (collision and comprehensive) if your vehicle is financed or leased. 

What happens if my damages exceed the Texas minimum liability limits? 

Your insurance pays up to your policy limits. Anything beyond that becomes your personal responsibility, which could lead to lawsuits, wage garnishment, or asset loss. 

Can I drive in Texas with out-of-state insurance? 

Yes, but your policy must meet or exceed Texas minimum liability limits. If it doesn’t, you’ll need to update or adjust coverage once you become a Texas resident. 

Is proof of insurance required to register a car in Texas? 

Yes. You must show valid proof of insurance that meets state minimums when registering or renewing a vehicle in Texas. 

How often do Texas minimum insurance requirements change? 

Texas hasn’t changed its 30/60/25 limits in years. Updates are rare and would require legislative action by the Texas Department of Insurance or the state legislature.