Ultimate Guide To Car Insurance In Texas

This guide is designed to be a comprehensive resource for drivers in Texas looking to understand the laws, minimum requirements, and penalties so they can confidently choose the right car insurance coverage.

Does Texas Require Car Insurance?

Yes, drivers in Texas need to meet what is called “financial responsibility” whereby they maintain state minimum liability coverage in the event of an accident. Failure to do so comes with fines, penalties, and license suspension.

Texas requires “30/60/25” for mandatory liability limits:

• Bodily Injury Liability: $30,000 per person injured in an accident.
• Bodily Injury Liability (Total): $60,000 total for all injuries in one accident.
• Property Damage Liability: $25,000 per accident to cover damage you cause to others.

How Much Insurance Should You Get In Texas?

State minimums may be low in comparison to the many risks drivers in Texas face, including extreme weather, high rates of vehicle theft, and uninsured motorists. Option coverages can help.

Around 14% of drivers in Texas are uninsured. So UM/UIM insurance can recover costs if one of these 14% hits you.

Texas leads the nation in hail storms. Comprehensive coverage is the only way to recoup costs for a vehicle totaled or damaged by hail, as well as tornadoes, flash floods, and hurricanes.

Texas also has the second highest rates of stolen vehicles across the country, especially in Houston and Dallas-Forth Worth. Comprehensive coverage for drivers in these cities can help recover the vehicle if stolen or pay for repairs if vandalized.

Dallas and Houston often report multi-car pileups due to the dense traffic and high speeds. For drivers here, collision coverage can repair your vehicle no matter who was at fault.

With extreme summer temperatures and vast stretches of rural landscapes, the risk of car failure in remote areas is high. Drivers with Roadside Assistance can get help with costs of expensive repairs or tows.

How Much Is Car Insurance In Texas?

The average monthly price for minimum coverage is around $50 but around $185 for full coverage. That said, many factors influence premiums like location, age, gender, and the following:

• Low-income car insurance: Texas does not have any low-income insurance programs so the best option is to get the minimum liability coverage.
• Non-owner car insurance: Texas drivers who want coverage for themselves, but don’t own a car can expect premiums at $35 per month.
• Temporary car insurance: The shortest term available in Texas is 6 months, which costs around $110 per month.
• Senior car insurance: Drivers aged 60–75 pay an average of $80 per month for minimum coverage or $206 per month for full coverage.
• Teen car insurance: The average price for a teen is around $610 per month.
• SR-22 insurance: A high risk status can result in monthly coverages around $179.
• College Students: Drivers aged 20–25 pay an average of $160 per month for basic coverage, with pricing highest for those 18-19.
• Bad Credit: Drivers with poor credit scores will pay around $180 per month for basic liability and up to $290 for full coverage.
• With a speeding ticket: A single speeding violation can raise basic monthly costs to around $200 in Texas.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In Texas?

Texas works with many specialty and non-standard carriers alongside prominent state and regional as well as national providers. The most common include the following:

• State Farm
• Allstate
• Progressive
• GEICO
• Liberty Mutual
• USAA
• Nationwide
• Travelers
• Farmers Insurance
• American Family Insurance
• Texas Farm Bureau Insurance
• Auto-Owners Insurance
• Mercury Insurance
• Redpoint County Mutual Insurance
• Germania Insurance
• Amica Mutual Insurance
• TGS Insurance
• SafeAuto
• Direct Auto Insurance
• Dairyland
• The General

Note: If you want a robust list, you can always check the Texas Department of Insurance Company Search tool for all licensed providers in the state.

Determining the best coverage/company for your needs can be done by comparing different providers like these through Insuranceopedia.

How To Get Lower Insurance Premiums In Texas

Texas car insurance premiums average 14% higher than the national average so finding any way to reduce your premium can be very useful. Here are some tips that drivers can use to keep their Texas premiums at a minimum:

Utilize The 2025 Veteran Relief Program

In 2025, a new policy was passed stipulating that qualifying Texas veterans who drive an average of less than 80 miles per day can save on their premiums, sometimes over $1,300 per year.

Take A State-Approved Defensive Driving Course

Many auto insurance providers in Texas will give discounts up to 10% for drivers who complete state approved accident prevention or defensive driving courses. The discounts can be even higher for young drivers and teenagers under 25 who take a driver training program.

Shop For Regional Rates

Texas allows insurance providers to file regional and individual rates based on things like zip codes so shopping a regional insurance provider can give you access to more favorable premiums as compared to national brands.

Check For Widowed Spouse Protections

While there are plenty of circumstances where your insurance premiums might go up because of things like Your involvement in a car accident or getting a citation, recent legislation (SB 1238) prohibits insurance companies from increasing rates for widowed spouses based solely on their change in marital status. So if your spouse recently passed away, make sure that your insurance company has not changed your premiums as a result.

Leverage “Good Student” Discounts

If you have a young teen driver, look for good student discounts; Families can save up to 25% for students under 25 who maintain a high GPA (typically a 3.0 or “B” average).

Increase Your Deductible

Increasing your deductible can decrease your premiums. The deductible is the amount that you have to pay out of pocket before your insurance kicks in so the lower your deductible, the higher your insurance premiums and vice versa. Raising your deductible by a few hundred dollars can give you substantial savings per year.

Shop Annually

Always review your available options, checking into your coverage every year with tools like Insuranceopedia. This will help you find up-to-date policies and products based on things like the current market, your current credit score, driving history, and other potential discounts.

Proof Of Insurance In Texas

All drivers must follow the Financial Responsibility laws in Texas meaning that they need to carry valid car insurance. failure to do so can result in significant legal and financial penalties. Drivers must maintain a minimum liability policy and show proof of it through a standard insurance card. Alternatively, drivers can submit a surety bond, a deposit with a county judge or state comptroller, or a certificate of self-insurance.

Drivers without insurance or a financial equivalent can face fines which can reach up to $4,000 if drivers are involved in a car accident, as well as possible vehicle impoundment, license and registration suspension, and possible jail time.

Some drivers will be classified as “high risk,” requiring them to submit an SR22 form with the Texas Department of Public Safety for at least 2 years.

Texas State Driving Laws

Texas has many state laws and key driving regulations designed to keep passengers, drivers, and pedestrians safe. Below are the most important regulations that every driver in Texas should know about fault, insurance, and more:

Fault State

Texas is an at-fault state, so whichever driver is deemed “at fault” for an accident is also responsible for the damages and medical costs of the other parties. Texas uses a modified comparative negligence rule so drivers can only recover damages if they are 50% or less at fault for the accident.

Drivers Without Insurance

Driving without insurance is against the law, with penalties including fines, annual fees, vehicle impoundment, and suspension of license/registration.

Uninsured Motorist (UM) Coverage

Texas does not require UM/UIM coverage. However, state law mandates that insurers offer it and drivers can choose to reject it in writing when taking out a new policy.

SR-22s

Some drivers are required to file an SR22 with the Texas Department of Public Safety especially to reinstate their driver’s license after driving without insurance.

Self-Insurance

Texas law requires that drivers or businesses that own a fleet can still cover the mandatory state limits of 30/60/25, but out of pocket. Businesses typically have to show financial statements indicating they have enough assets to cover potential claims plus an additional amount. For neither businesses nor individuals can this be just a savings account but usually a deposit with the state or a surety bond.

Seat Belt Laws

Texas requires all occupants in all vehicles wear seat belts. Failure to do so is grounds for being pulled over and cited.

Distracted Driving Laws

Texas has banned any texting while driving for all drivers of any age. For those who are under 18, no wireless communication device can be used except for emergencies. For those over 18, handheld call phone talking is not strictly prohibited.

Teen Driving Laws

Texas uses a Graduated Driver Licensing system. At age 15 teens can get a learners permit after which they can graduate to a provisional license at age 16, and a full licence upon completion of provisional requirements or age 18, whichever comes first.

DUI Laws

Texas considers driving while impaired “Driving While Intoxicated” which applies to drivers 21 and older with a BAC at 0.08% or higher, and any trace of alcohol for those under 21. Violations can result in fines, jail time, and license suspensions. Penalties are worse if the BAC is 0.15% or higher or if there are children in the car.

Statute Of Limitations For Claims

The statute of limitations for claims is 2 years after the accident.

When To Report An Accident

Texas drivers have to immediately report car accidents to local law enforcement if there’s an injury, death, or property damage valued at more than $1,000.

When Is A Car Declared A Total Loss?

A car is declared a total loss when the repairs and salvage reach 100% or more of the actual cash value but Texas does allow insurance companies to make the final determination.

Cancellation/Non-Renewal Notification Laws

Insurance providers must give Texans 10 days’ written notice before canceling a policy, with their reason why. If they are not going to renew your policy, they have to give you 30 days’ written notice.

Car Inspections

In March of 2025 Texas eliminated annual vehicle safety inspections for all non-commercial vehicles but emissions testing is still required in certain counties, for specific vehicles.

Defensive Driving

Texas allows drivers to complete a driver safety course in order to dismiss a traffic ticket, with permission ahead of time from the court, or to get a discount on insurance premiums.

Civil Suit Thresholds

While there is no specific threshold for civil lawsuits based on state legislation, small claims court does have jurisdictional limits around $20,000 for damages.

Texas Car Insurance Contact Information

There are many state agencies throughout Texas that handle things like vehicle compliance and car insurance. Knowing who to contact regarding things like vehicle registration or insurance regulations can make it easier when the time comes.

1. Texas Department of Insurance (TDI)

The TDI regulates the insurance industry so if you have an issue with your current insurance provider, or a former provider, over things like a policy cancellation, premium hikes, or claims being denied, you can contact the TDI. You can also use the TDI to confirm the legitimacy of an agent or company.

Contact Information:

• Consumer Help Line: (800) 252-3439 (Main assistance and complaints).
• Main Office (Austin): (512) 676-6000.
• Agent & Adjuster Licensing: (512) 676-6500.
• Fraud Reporting: (800) 252-3439 | Email: FraudUnit@tdi.texas.gov.
• Website: texas.gov.

2. Texas Department of Motor Vehicles (TxDMV)

The TxDMV handles many things including vehicle titles, registration, and enforcement of the Texas insurance verification system, TexasSure. So if for some reason TexasSure can’t confirm your coverage, you will get a letter from the state and you can contact this office. If you need to report an issue with a car dealer, this is also where you go.

Contact Information:

• General Information: (888) 368-4689.
• Online Registration Help: (888) 368-4689 or (512) 465-3000.
• Specialty Plates: (512) 374-5010.
• Email: AskDMV@TxDMV.gov.
• Website: gov.

3. Texas Department of Public Safety (DPS)

The DPS is where to go for license reinstatement after a suspension, like after failing to maintain insurance coverage. This is also where to go if you need to verify your SR-22 has been received, or to obtain a copy of your driver record.

Contact Information:

• Driver License Customer Service: (512) 424-2600.
• Enforcement & Compliance (SR-22/Hearings): (512) 424-2600.
• Driving Records: (512) 424-2600 or Order Online.
• Website: texas.gov.

4. Texas Automobile Insurance Plan Association (TAIPA)

TAIPA is a state-based insurance plan for high-risk drivers. So if you get a DUI or have your license suspended for lack of insurance and are deemed a high risk driver, you can come here if other providers have denied you a policy.

Contact Information:

• Customer Service: (866) 321-9154.
• Email: customer.service@taipa.org.
• Website: org.

Common Texas Car-Related Crime And Fatalities

Drivers in Texas need the right insurance for car-related crimes and driver risks.

Traffic Fatality Facts

Texas has some of the worst rates of car fatalities having had over 3,000 people die in 2025 alone. For the last 25 years since November of 2000, there has been at least one traffic accident fatality every day of every year in Texas. In 2024, over 4,000 total traffic deaths happened.

Nearly half of all the people killed in traffic fatalities in 2023 were not wearing a seatbelt.

Vehicle Theft Trends

Texas also breaks from the national averages when it comes to car related crime and vehicle thefts, with things like the Chevrolet Silverado and CMG Sierra being the most commonly stolen vehicles particularly in cities like Houston and Dallas

Causes Of Accidents And Fatalities In Texas

Speeding is one of the biggest causes of accidents and fatalities in Texas with speeding responsible for nearly 160,000 car accidents in the first 7 months of 2025 and over 1,500 deaths during the same time frame.

However, it is not the biggest cause of accidents and fatalities; distracted driving is. The Texas Department of Transportation has cited distracted driving as the biggest cause of accidents across the state.

Other risk factors include animal collisions particularly deer, with nearly half of all deer related car accidents happening during mating season.

Drivers and highly urban areas like Dallas and Houston have a much higher risk of fatal head on collisions and pedestrian car accidents as well as pedestrian related fatalities.