You’ll need to show proof of insurance if law enforcement asks you in Texas.
Table of ContentsTexas law requires drivers to prove that they can pay for auto accidents that they cause. Drivers prove they can pay by purchasing and proving that they have purchased auto liability insurance. This type of insurance pays for damages to another party’s vehicle or property in the event that another driver hits them. It will also pay for the medical expenses of the driver or passengers in the vehicle should they be injured during an accident.
In this article, we’ll review the Texas laws for minimum coverage, the no-fault system and other rules and regulations you need to be aware of when driving a car in the state.
Understanding Texas car insurance laws will help you ensure that you have the right coverage for your car.
You may see this written as 30/60/25 coverage, an abbreviated version of the minimum liability coverage, such as bodily injury and property damage liability car insurance coverage. Uninsured/underinsured motorist coverage is not required, nor is rental car coverage, which entails the insurer paying for a rental car if yours is in the shop under a covered claim.
While Texas imposes a $175 penalty on drivers that don’t have insurance, this penalty is not as stiff as other states like Pennsylvania, where you pay a $300 fine and get your license and registration suspended.
Texas is an at-fault state. Being in an at-fault state means that if an accident is your fault, your bodily injury liability pays for the injuries of the other party, and your property damage liability pays for the damages to the other vehicle or property. Personal injury protection is elective, which means that you would cover your own injuries if another vehicle hits you rather than rely on their bodily injury liability protection.
There are other laws pertaining to drivers in Texas when it comes to auto insurance:
Paying your bills on time can improve your credit score, which will help you reduce the cost of insurance in Texas.
Beyond the minimum required insurance coverages, you may want to add other coverages to be fully insured. Full coverage includes comprehensive, collision and personal injury protection (PIP) coverage:
Comprehensive and collision coverage usually have deductibles. A deductible is the amount you pay before the insurance coverage kicks in.
Other optional coverages that are not part of full coverage but are helpful to have include:
In 2020, the National Association of Insurance Commissioners (NAIC) reported that the average car insurance expenditure in Texas was $1,085 per year. 2
Texas is not known to have the cheapest car insurance rates. It ranks with the NAIC data as being the 16th-highest rate in the nation. So while it’s better than some, you will have to do some shopping to get the cheapest Texas rates.
When shopping for car insurance, it is important to understand that many factors will affect your rate, including:
Texas requires all registered vehicles to obtain annual inspections from licensed inspection facilities. These inspections go over safety points and may also include emissions tests. Vehicles that are gas-powered must get emissions tests, with the exception of diesel-powered vehicles and motorcycles. 3 The cost of the safety inspection is $7, and the cost of the emissions test ranges from $11.50 to $25.50, depending on what county you live in.
Texas takes texting and other cell phone use while driving very seriously, as using a device while driving is dangerous. The law prohibits teen drivers under the age of 18 from using cell phones while driving at all, while all drivers have a texting ban, regardless of age. 4
The penalties can be stiff if the courts convict you of texting and driving in Texas more than once or if your distracted driving caused an injury or death.
| Offense number of texting and driving in Texas | 1 | Subsequent | Results in injury or death |
|---|---|---|---|
| Fine minimum | $25 | $100 | $4,000 |
| Fine maximum | $99 | $200 | $4,000 |
| Jail time maximum | None | None | 1 year |
Texas drivers must adhere to the at-fault state laws when it comes to insurance. If you’re ready to buy auto insurance, check out our guide for the best Texas auto insurance. Get the coverage you need with the options you want for the best possible price.
In Texas, car insurance follows the car. When you lend the car to a friend, the car remains insured with your policy. Your friend does not need to obtain insurance to drive it.
Yes, someone not listed on your auto insurance policy can drive your car and have the protection of the insurance policy. The only exception is if you specifically exclude the person from your policy.
You don’t need to purchase car insurance in Texas if:
When borrowing a car, make sure that the owner has the required insurance.
Consumers can find the cheapest car insurance rates in Texas with State Farm. You can get a minimum coverage policy for as little as $348 per year or a full coverage policy for as little as $876 per year.