Texas Auto Insurance FAQ

Texas requires liability coverage of 30/60/25 under Texas Transportation Code §601.072: $30,000 bodily injury per person, $60,000 bodily injury per accident, and $25,000 for property damage per accident. This is the legal minimum to drive in Texas and has been unchanged since 2011.

The three numbers are your liability limits. $30,000 is the most your insurer pays for one person's injuries, $60,000 is the total for all injuries in a single accident, and $25,000 is the maximum for property damage you cause. These amounts protect other people — not you or your own vehicle.

No. Liability-only 30/60/25 coverage pays only for injuries and property damage you cause to others. It does not cover your own medical bills, your own vehicle damage, theft, vandalism, hail, flooding, single-vehicle crashes, or hit-and-run damage to your car. For that you need collision and comprehensive (full) coverage.

In 2026, Texas drivers pay roughly $77 per month for minimum liability coverage and around $200 per month for full coverage on average, though estimates range from about $150 to $250 depending on the study. Your actual rate depends on your age, ZIP code, driving record, credit, and the company you choose — which is why quotes for the same driver can differ by hundreds of dollars a year.

Texas Farm Bureau is consistently the cheapest carrier statewide in 2026 (around $51/month liability, $137/month full coverage), though it requires a low-cost membership. State Farm and Germania are also among the cheapest, and USAA is usually cheapest of all if you have a military connection. There's no single cheapest company for everyone — the best move is to compare three or four carriers for your exact profile.

Driving uninsured is a Class C misdemeanor. A first offense carries a fine of about $175–$350. A second offense can mean fines up to $1,000, license and registration suspension, and possible vehicle impoundment, plus an SR-22 filing requirement upon reinstatement.

Legally yes, but financially it is often not. Hospital stays and modern vehicle repairs frequently exceed the 30/60/25 limits, leaving you personally liable for the difference. Many experts recommend higher limits such as 50/100/50 or 100/300/100, plus collision and comprehensive if your car is financed or worth keeping.

An SR-22 is a certificate your insurer files to prove you carry at least the state-minimum coverage. Texas typically requires it after serious violations such as driving uninsured, a DUI, or license reinstatement, usually for two years. Texas uses SR-22 filings, not FR-44 (which only applies in Florida and Virginia).

Yes. Texas allows insurers to use a credit-based insurance score when pricing premiums. Drivers with poor or no credit can pay substantially more than drivers with excellent credit. Improving your credit over time can meaningfully lower your rate.

Compare quotes from several carriers, raise your deductible if you can afford it, bundle auto with home or renters insurance, ask about safe-driver and good-student discounts, enroll in a usage-based/telematics program, maintain continuous coverage, and work on your credit. Shopping around is the single biggest lever — rates for the same coverage can differ by thousands per year.

The minimum coverage requirement did not change — it's still 30/60/25, despite rumors of a '50/100/40' increase. What did change is House Bill 2067, effective January 1, 2026: insurers must now automatically give you a written reason whenever they decline, cancel, or non-renew an auto or home policy, without you having to ask.