Texas Auto Insurance

Texas Auto Insurance Laws

Texas auto insurance laws require drivers to provide the minimum mandatory liability auto insurance on any registered vehicle in the state. This insurance must be obtained through an authorized insurance company which has received approval from the state of Texas. Texas drivers may also self insure via a bond filed with the state of Texas. You will not be allowed to register your vehicle without either proof of insurance or self insurance.

No vehicle will be registered in the state of Texas without proof of the minimum liability auto insurance. The minimum liability auto insurance coverage in Texas is $25,000.00 of bodily injury insurance for each individual, $50,000.00 for two or more injured people and $25,000.00 for property damage. Any auto insurance policy purchased in Texas must include the minimum liability amounts.

You must carry proof of insurance with you at all times, as Texas auto insurance laws state. Uninsured and underinsured motorist is not required by Texas law but the insurance company must offer you the option to purchase this coverage when you buy your minimum coverage. Since Texas is a tort state, the insurance company may strongly suggest you carry uninsured and underinsured coverage. Should you choose not to take this option, you will have to sign a paper stating that you turned down the coverage. Comprehension and collision coverage is not required by the state of Texas.

Texas Auto Insurance Laws

Every motorized vehicle on Texas roads must be covered by the minimum liability coverage. This law also applies to rental vehicles. Your insurance policy usually covers rental vehicles. The credit card you use to rent the car may also cover the insurance on the vehicle. If this is not the case, you will have to purchase the minimum liability auto insurance policy from the rental car company. This coverage will cost $7.00 to $14.00 per day. Be sure to carry the rental agreement in the car at all times. This is your proof of insurance should you be involved in an accident or get stopped for a traffic violation.

If you are involved in an accident or experience any type of traffic stop in the state of Texas, the police officer will request proof of insurance. Lack of insurance could result in fines, and the loss of your license, as you must have the Texas auto insurance requirements. The state of Texas has put a new program in place which notifies the state if your policy has lapsed. Law enforcement officers and other state officials have access to this information. A lapsed policy is the same as not being insured at all. Failure to provide proof of insurance required by any communication from the state according to the conditions set by that correspondence will result in the loss of your driver’s license.

You must obtain the minimum insurance before you register your car. You will not be allowed to register your car without proof of insurance. There is no wait time allowed for you to insure your vehicle. Off-highway vehicles and non-operational vehicles do not require the minimum liability auto insurance.


The penalties for not carrying current minimum liability auto insurance in the state of Texas include fines, and possible loss of your driver’s license. The fines can range from $175.00 to $350.00 for the first offense. The penalties will increase with each successive time you are caught without proof of insurance or self insurance. Upon the third offense your license will be suspended.


Your proof of insurance should be kept in the car at all times, as per the Texas auto insurance law. This proof needs to include the name of the insurance company and the policy holder’s name as well as the names of all persons covered by the policy. It also needs to have the make, model, and year of the vehicles being covered by the policy. The vehicle’s VIN number and the dates of coverage are also required to assure the law enforcement officer that the insurance is current. The generally accepted forms of proof of insurance are an identification card issued by the company, a copy of the policy, a form from the state confirming a self-insurance bond, or of payment for a new policy along with the proof of former coverage and the bill of sale for a recently purchased vehicle within the last 30 days.