Texas Car Insurance Requirements: What's Actually Required?

Texas requires liability insurance to register and legally drive a vehicle, and it enforces that requirement through an electronic verification system rather than relying solely on drivers carrying a paper card. Understanding what the state actually mandates, and how it checks compliance, matters both for staying legal and for knowing where the minimum leaves you exposed.

What Texas requires

Texas requires drivers to carry liability insurance, expressed as three numbers covering bodily injury per person, bodily injury per accident, and property damage per accident — commonly written in a format like 30/60/25. The exact current minimums are set by the Texas Department of Insurance and the Texas Department of Motor Vehicles, and they can be updated by the legislature, so confirm the current figures directly with those agencies rather than assuming an older number still applies.

Texas is a tort state, not a no-fault state, meaning the at-fault driver's liability insurance is expected to pay for the other party's injuries and damage. There is no state-mandated personal injury protection requirement, though insurers must offer PIP and you can decline it only in writing.

Uninsured and underinsured motorist coverage

Texas does not require uninsured or underinsured motorist coverage, but as with PIP, insurers are required to offer it and a written rejection is needed to decline it. Given that a meaningful portion of Texas drivers carry no insurance or only the legal minimum, declining this coverage by default is worth reconsidering — it is often one of the least expensive additions relative to the protection it provides.

TexasSure and proof of insurance

Texas verifies insurance through TexasSure, a system that electronically checks vehicle registration records against insurer-reported coverage data. This means law enforcement and the state can identify uninsured vehicles without needing to see a physical insurance card at a stop, though you should still carry proof of insurance in the vehicle. Driving without insurance, or letting a policy lapse without notifying the DMV appropriately, can lead to fines, registration suspension, and a requirement to file an SR-22 to reinstate driving privileges, with harsher consequences for repeat offenses. Confirm current fine amounts and procedures with the Texas Department of Motor Vehicles.

What your lender requires

If your Texas vehicle is financed or leased, expect the lender to require collision and comprehensive coverage in addition to whatever liability limits you carry, typically with a deductible at or below a specified amount. Given the frequency of hail damage in parts of Texas, comprehensive coverage is worth carrying even on vehicles that are paid off, since a single hailstorm can cause damage well beyond what most people expect to pay out of pocket. Leasing companies often add a gap insurance requirement as well.

The minimum is a floor, not a plan

Texas's liability minimum protects other people, not your own vehicle, and the per-accident and per-person caps can be exceeded quickly in a serious crash, exposing you personally to the difference. Many Texas drivers choose to carry higher liability limits than the state requires, along with uninsured motorist coverage and comprehensive coverage, once they see what those upgrades actually cost. You can compare quotes to see the price difference between state-minimum and stronger coverage before deciding what to carry, and if you are shopping around after a move or a life change, our guide on filing a claim is worth reading too, since it explains how these coverages actually play out after an accident.