Texas Car Insurance Basics

Texas requires every driver to carry liability insurance under the Motor Vehicle Safety Responsibility Act, and the state runs TexasSure, an electronic verification system that checks insurance status against vehicle registration nightly. Driving without coverage in Texas isn't just a ticket — it's a path to license suspension, an SR-22, and dramatically higher rates for years afterward.

Texas minimum liability: 30/60/25

The Texas minimum liability limits are $30,000 / $60,000 / $25,000:

• $30,000 bodily injury per person.
• $60,000 bodily injury per accident (all injured parties combined).
• $25,000 property damage per accident.

These are minimums, not recommendations. With Texas hospital costs and the cost of newer vehicles, a single serious crash can blow past the 30/60/25 limits and leave the driver personally responsible for the excess. Most Texas insurance professionals suggest at least 100/300/100 for any household with assets to protect.

What's not required

Texas does not require:

• Uninsured/Underinsured Motorist (UM/UIM) — but every Texas insurer must offer it, and the driver must reject it in writing if they decline.
• Personal Injury Protection (PIP) — also offered by every carrier and rejected only in writing.
• Comprehensive or collision — required only by lenders for financed vehicles.

Adding UM/UIM at the same liability limits typically costs $5-$15 a month and is one of the highest-value add-ons in any Texas auto policy, given Texas's roughly 13% uninsured driver rate.

TexasSure verification

Texas insurers report active policies daily to TexasSure, which then matches policies to TxDMV registrations. A vehicle without a matching active policy is flagged. The flag itself doesn't trigger an automatic citation, but TexasSure data is queried by:

• Law enforcement during a traffic stop.
• The county tax office at registration renewal — without a TexasSure match, the renewal is blocked.
• DPS at any driver license action.

Penalties for driving uninsured

A first Failure to Maintain Financial Responsibility citation in Texas is $175-$350 plus court costs. A second conviction within 36 months is $350-$1,000, vehicle impoundment, and a 2-year SR-22 requirement. Drivers who cause an accident without insurance face license suspension under the Safety Responsibility Act and can be required to post a bond to release impounded vehicles.

SR-22 financial responsibility

An SR-22 is a certificate of insurance filed by the carrier directly with Texas DPS, certifying that the driver carries at least 30/60/25 liability. SR-22 is required after:

• A DWI conviction — typically 2 years.
• Two no-insurance convictions in 36 months.
• An at-fault accident while uninsured.
• Court-ordered for occupational/essential need licenses.

If the SR-22 policy lapses, the carrier files an SR-26, which suspends the license again. The 2-year clock restarts only after a fresh SR-22 is on file. Most carriers charge a $15-$25 SR-22 filing fee on top of the policy premium, and the policy itself typically costs 60-100% more than a standard policy at the same limits.

What carriers see at quoting

Texas insurers pull two main reports at quoting: a Texas driving record from DPS and a CLUE loss-history report from LexisNexis. They also run a credit-based insurance score in Texas (the practice is permitted by state law, with restrictions). A clean record and a credit score above 700 typically lands the lowest available rate; a single speeding ticket adds 15-25% for 3 years; a DWI doubles the rate or pushes the driver into a non-standard carrier for 3-5 years.

Surplus lines and the assigned risk pool

Drivers who can't get coverage from a standard carrier — usually because of multiple DWI convictions, an at-fault death, or a long suspension history — can apply through the Texas Automobile Insurance Plan Association (TAIPA), the state's assigned-risk pool. TAIPA premiums are higher than standard but guaranteed availability for drivers who would otherwise be uninsurable.