Is liability insurance required in Texas?

Drivers are required to carry Texas liability insurance in the amount of 30/60/25, but those limits are very low and only cover damages to another driver and their vehicle. Consider raising limits and adding auto insurance coverages like collision, comprehensive, and personal injury protection to be fully covered.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent Rachael Brennan

UPDATED: Feb 17, 2022

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Can't-Miss Facts

  • Texas liability insurance is required and must include $30,000 in bodily injury protection per person and $25,000 in property damage coverage.
  • Liability insurance only covers damages to others that you cause in an accident and doesn’t cover you, your passengers, or your car.
  • Drivers are encouraged to increase liability limits and add coverage to be fully protected.

While most states require drivers to carry coverage, Texas auto insurance requirements are very low. Texas liability insurance is only 30/60/25 and offers minimal protection.

Adding coverages like collision and comprehensive will protect your car from damages and save you substantial out-of-pocket costs.

Thankfully, adding more auto insurance coverage won’t break the bank. Since every auto insurance company in Texas will offer various rates, shop around. Compare coverages and rates to find your best deal.

Keep reading to learn more about Texas liability insurance. Enter your ZIP code to compare free auto insurance quotes for liability coverage in Texas.

Is liability auto insurance coverage required in Texas?

Just about every state in the country requires drivers to have liability auto insurance, and Texas is no exception. In fact, it might surprise you how little auto insurance Texas requires.

In Texas, drivers only have to carry liability insurance, which helps pay for bodily injuries and property damage to others if they cause an accident.

Texas auto insurance requirements are:

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

Bodily injuries can include hospital visits, doctor bills, medication, and lost wages. Property damage includes everything from vehicles and fences to light poles and landscaping.

Keep in mind that mandatory liability insurance in Texas does not cover everything you may need.

For example, let’s say you cause an accident, the other driver is injured, and their vehicle is totaled. The costs of hospital bills and cars are increasing every day.

The liability coverage required by Texas will only pay $30,000 for bodily injury and $25,000 for damage to the other vehicle. That’s just not enough to cover a significant accident.

The minimum amount of insurance required by Texas can leave huge costs you have to pay for yourself. Not to mention, liability insurance doesn’t cover your damages or injuries.

If you decide to only carry liability auto insurance, consider raising your limits to offer more protection.

Although the auto insurance required in Texas is minimal, driving without it can really cost you. You can be fined, have your car impounded, and even have your driver’s license suspended.

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How much is Texas liability insurance?

As we have discussed, liability insurance offers little coverage, but rates are low. On the other hand, insurance that provides coverage for your vehicle is more expensive but can be well worth the cost.

This table shows average annual auto insurance rates in Texas from top companies. It might surprise you how little the cost difference is between low and high coverage.

Texas Average Annual Auto Insurance Rates by Coverage Level
CompanyLow CoverageMedium CoverageHigh Coverage
American Family$4,517.27$4,672.73$5,357.52
State Farm$2,729.50$2,870.49$3,039.86

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While USAA has the lowest auto insurance rates in Texas, it only offers coverage to members of the military and their families. State Farm offers the lowest rates to all drivers in Texas.

High or full coverage auto insurance is only around $25 a month more than low or liability-only coverage. While rates are slightly higher, you won’t have to pay for damages to your vehicle yourself.

Car insurance quotes in Texas are based on many factors, such as your age, driving record, and vehicle. Young drivers with multiple tickets and who drive a new car will see the highest auto insurance rates.

Where you live will also be used to determine your rates. For example, drivers who live in cities with high traffic volume and many auto thefts will see higher rates.

For example, car insurance in Houston averages $400 a month, but coverage in San Antonio is about $340 a month. This means that drivers pay $60 a month less for auto insurance in San Antonio just because of their ZIP code.

What other kind of auto insurance should you consider?

The good news is that you do not have to depend on liability insurance to meet all of your needs. However, there are various other auto insurance coverages that you should consider.

Collision insurance covers damages to your vehicle if you cause an accident. So whether you hit a tree or another car, collision coverage comes into play.

Comprehensive insurance also covers damages to your vehicle, but it is slightly different. Comprehensive pays for damages unrelated to an accident. These damages include fire, theft, vandalism, falling debris like tree limbs, and acts of nature like hail, tornados, and hurricanes.

Personal injury protection and medical payment coverages help pay for bodily injuries to you and your passengers. This can include doctor visits, medications, loss of wages, and even funeral costs.

Uninsured and under-insured motorist coverage is also essential. Coverage kicks in if another driver hits you that either doesn’t have auto insurance or only has a minimal amount.

According to the Insurance Information Institute, about 8% of drivers in Texas do not have auto insurance. So if you are hit by one of these drivers, uninsured motorist coverage will keep you from paying for damages out of pocket.

If your car will be expensive to repair or replace, consider adding coverages. However, if your vehicle is older, in poor condition, or not worth much money, you may want to skip extra coverages and plan to pay for damages yourself.

Texas Liability Insurance: The Bottom Line

Liability auto insurance required in Texas is very limited and offers minimal protection. Although drivers are encouraged to add coverages, consider increasing liability insurance limits as well.

If you drive without auto insurance in Texas, you can be fined, have your vehicle impounded, and have your driver’s license suspended.

Carrying liability insurance as well as collision, comprehensive, and personal injury protection will raise your rates but offer the most coverage.

Now that you know what Texas liability insurance is required, you’re ready to shop around for great coverage with low rates. Enter your ZIP code now to compare Texas auto insurance quotes from companies near you for free.

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