Texas Car Insurance Requirements: 30/60/25 Liability and What Else Comes With a Policy

Texas law requires drivers to show they can pay for the accidents they cause. Most drivers do this by buying liability insurance, and the minimum is 30/60/25: at least $30,000 of coverage for injuries per person, up to $60,000 per accident, and $25,000 for property damage ¹.

Texas minimum limits

Source: Texas Department of Insurance ¹.

The department's own advice is to think about buying more. It notes that the minimum limits might be too low if you cause a multi-vehicle accident or total another driver's car, and that you could have to pay the rest yourself ¹. Our guide to liability car insurance covers how to choose higher limits.

Coverages you get unless you say no

Texas handles two optional coverages in a way that surprises many drivers. They are not required, but they do not have to be requested either ¹.

Before signing a form that rejects either one, consider what it protects. The Insurance Research Council estimated that 13.8 percent of Texas drivers were uninsured in 2022 ². Note that Texas uninsured motorist coverage will not pay for a hit-and-run unless you reported it to the police ¹.

If you have a loan or lease

State law stops at liability, but your lender does not. If you still owe money on the car, the lender will require collision and comprehensive coverage. If you drop them, the lender can buy coverage that protects only its own interest and add the cost to your loan payment ¹. See full coverage car insurance.

If no company will insure you

Texas has a safety net for drivers who cannot find coverage. If two insurance companies have turned you down, you can get a policy through the Texas Automobile Insurance Plan Association, known as TAIPA ¹.

• It sells liability, personal injury protection and uninsured motorist coverage.
• It does not sell collision or comprehensive, or liability limits above the state minimum.
• It costs more than coverage from other companies.
• After three years without tickets or accidents, your insurer must offer you a cheaper policy outside the plan.

Where a Texas policy applies

Most policies cover accidents in other states and in Canada. They generally do not cover driving in Mexico, which does not recognize American auto policies, so the department advises buying a Mexican liability policy for trips across the border. Most policies also exclude accidents that happen while driving for a ride-hailing or delivery service ¹.

Comparing prices in Texas

The Texas Department of Insurance explains that rates are higher in cities, because crashes and thefts are more likely there, and that rates can vary between ZIP codes in the same city ¹. That is why drivers in the Houston or Dallas areas often see higher prices than drivers in rural counties.

The state runs HelpInsure.com, where you can compare rates and coverage from the companies that sell the most policies in Texas ³. Our guide to car insurance quotes explains how to make sure the quotes you compare are for the same coverage.

According to the NAIC, the average expenditure in Texas was about $1,578 per insured vehicle in 2024, compared with $1,431 nationally ⁴.

The bottom line

Texas requires 30/60/25 liability coverage. Personal injury protection and uninsured motorist coverage come with the policy unless you decline them in writing, and both are worth keeping in mind before you sign them away. To compare Texas with other states, see car insurance requirements by state, or return to the main car insurance guide.