Guide to Car Insurance in Texas

In Texas, all 18.7 million drivers are required to hold liability auto insurance coverage. The average cost of full coverage auto insurance in Texas is $2,051 annually, and $789 annually for minimum coverage.

Whether you are moving to Texas or have been living there for years, it is always a smart idea to brush up on the requirements and laws. We’ve gathered everything you need to know about driving safely and legally in Texas.

Required Car Insurance in Texas

Here are the minimum requirements in Texas:

• Bodily injury liability: Texas car insurance laws require drivers to have $30,000 of coverage per person and $60,000 per accident. Bodily injury liability covers the other party’s injuries if you or someone else on your policy driving your car causes an accident.
• Property damage liability: You are required to have $25,000 in property damage coverage. Property damage covers damage to a third party’s vehicle or property if you or someone else on your policy causes an accident.

How Much Coverage Do I Need?

If you’re searching for cheap car insurance in Texas, opting for minimum coverage might seem like the most budget-friendly choice. While it can save you money upfront, it may leave you financially vulnerable after an accident. To better protect yourself and avoid unexpected out-of-pocket costs, we recommend purchasing full coverage with higher liability limits.

Liability Coverage

We recommend carrying 100/300/100 liability coverage in Texas, or $100,000 in bodily injury liability per person/$300,000 per accident, and $100,000 in property damage liability per accident.

Comprehensive Coverage

Comprehensive covers any damage to your vehicle that is not due to a collision, such as weather damage, earthquake damage, landslide damage, or theft.

The limit for comprehensive coverage is the actual market value of your car. You can find the actual market value of your vehicle by going to a car pricing website, such as Kelley Blue Book or Edmunds, and plugging in your make, model, year, and mileage.

Understand that your car depreciates when you leave the car dealership. The wear and tear of driving also can cause price depreciation. The actual market value of your car is not what you paid for it, but what it is worth now.

Collision Coverage

Collision coverage covers the costs of repairing or replacing your vehicle in the case of an at-fault collision. The limit for collision coverage is the actual market value of your car.

Uninsured/Underinsured Motorist Coverage

We recommend getting uninsured motorist coverage (UIM) with limits equal to your bodily injury and property damage liability. UIM covers damage to your vehicle or you if an uninsured or underinsured motorist causes you damage or injury.

Medical Payments Coverage

Medical payments coverage covers the cost of your medical bills if you are at fault in an accident. We recommend carrying $1,000 to $5,000 in coverage — or more, depending on your health insurance plan — to supplement your health insurance if you’re in a serious accident. Since auto insurance in Texas works under an at-fault system, you can get your injuries covered only by medical payments coverage, not personal injury protection.

The Average Rate of Car Insurance in Texas

The cost of car insurance in Texas averages about $1,715 annually. Full coverage premiums are $2,051 per year and minimum coverage is $789 per year. Auto insurance rates in Texas fall about 7 percent higher than the national average. However, we have seen annual auto insurance rates as low as $665 and as high as $7,285 for young drivers.

Providers in Texas

If you are shopping for auto insurance policies in Texas, look into these providers:

• AAA
• Allstate
• Amica
• Chubb
• Dairyland
• Farmers
• GEICO
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Texas Farm Bureau
• Travelers
• USAA

How to Lower Premiums in Texas

Although Texas car insurance is more expensive than average, there are multiple ways to lower the cost.

1. Compare quotes from multiple insurers to find the best rate.
2. Bundle your auto insurance with other policies, like home or renters insurance.
3. Maintain a clean driving record to qualify for safe driver discounts.
4. Take advantage of available discounts, such as those for good students or defensive driving courses.
5. Consider usage-based insurance programs if you drive fewer miles than average.

Proof of Car Insurance in Texas

Texas accepts both digital and paper forms of insurance. If you’d rather keep your insurance digital, your provider may offer a mobile app. Otherwise, you can download a digital version of your auto ID card from your provider’s website.

If you get caught driving without insurance in Texas, there are consequences.

• First offense: $175 to $350 fine
• Second offense: $350 to $1,000 fine, $250 surcharge for three years, and suspension of your driver’s license and vehicle registration for two years from the subsequent conviction; possible car impoundment for 180¹

Driving Laws in Texas

Now that you understand the insurance requirements, let’s talk about Texas driving laws.

Fault System

Texas is an at-fault state, meaning that the at-fault party pays for both property damage and medical expenses. If each of two parties is partially at fault, they can split the costs by their percentage of fault. Because Texas has a modified comparative negligence law, the accident victim’s recovery is reduced by their percentage of fault. If the injured party’s fault is 51 percent or more, they are not allowed to recover compensation.

Uninsured Motorists

Although an estimated 14 percent of drivers in Texas are uninsured, drivers are not required to have uninsured or underinsured motorist coverage. However, Texas insurance providers are required to offer both uninsured and underinsured motorist coverage².

In Texas, uninsured and underinsured motorist coverages can be stacked, meaning that you combine coverage limits for multiple vehicles. Texas allows stacking as long as it is across multiple policies. To get your combined coverage limit, multiply your uninsured/underinsured motorist limit by your number of cars.

DUI Laws

For drivers with a DUI, Texas never removes DUIs from their records (and they can expect higher car insurance rates). Whether it is your first offense or you are a repeat offender, the consequences are no light matter.

Seat Belt Laws

Texas requires all drivers to wear their seat belts at all times. Police can write you a citation for not wearing your seat belt regardless of whether you committed any other traffic violations, which means that the law is under primary enforcement⁴.

Distracted Driving Laws

In Texas, distracted driving laws apply to anyone driving in school crossing zones and on public school property during school hours. Drivers under the age of 18 are banned from using their cell phones while driving, and all drivers are prohibited from texting while driving⁵. If caught texting while driving, there will be a fine of up to $99 for your first offense and a fine of up to $200 for subsequent offenses⁶.

Teen Driver Laws

In Texas, teens need to follow certain restrictions to graduate to adult licenses by the time they turn 18. To apply for a learner’s license, they must be 15 years old. During this time, they are only allowed to drive under the supervision of a licensed adult who is 21 or older in the front seat.

To get their provisional licenses, they must be 16 years old and have had their learner’s licenses for at least six months. Teens are allowed to drive independently, but they need to abide by a handful of restrictions. Driving with their provisional licenses, they cannot do the following:

• Have more than one passenger who is under 21, excluding family
• Drive between midnight and 5 a.m. unless traveling to or from a school function or work
• Drive while using any type of mobile device, including a hands-free device

If they have any trace of alcohol in their system and are under 21 years old, Texas will suspend their licenses. Texas also suspends the licenses of minors convicted of buying, possessing, or consuming tobacco.

Teens can apply for adult licenses when they turn 18 if they follow all of Texas’ teen driving laws.

Statute of Limitations for Claims

The maximum time you can wait before filing a lawsuit is two years after the event. This time frame applies to both property damage and bodily injury claims. If you wait longer than two years, your provider may not cover your claims.

Cancellation/Non-Renewal Notification Laws

Auto insurance companies cannot cancel policies that have been in place for 60 days or more unless the following conditions occur:

• You don’t pay the premium.
• You have committed fraud or misrepresentation on your application.
• You have a revoked or suspended driver’s license.

Texas providers have 10 days to notify you of a midterm cancellation, regardless of whether or not it is due to nonpayment.

If a provider decides not to renew your policy, it has 30 days to inform you before the expiration date. The provider must give you notice and explain its reasoning for not continuing your policy before it drops it. Common reasons why providers drop policies are that the provider no longer offers that type of insurance, it doesn’t want to write as many policies in your area, or you have a drunk driving conviction⁸.

Self-Insurance

Texas allows self-insurance for motor carriers. Carriers must apply and submit materials to the Texas Department of Motor Vehicles to prove they have an adequate net worth and have established an insurance program. Otherwise, you can prove you have $55,000 in cash or get a personal certificate of deposit with the Texas comptroller.

Car Inspection Requirements

Vehicles registered in Texas must pass an annual safety inspection. All testing takes place at the Department of Public Safety–licensed Official Vehicle Inspection Stations. Along with the safety inspection, vehicles must undergo emissions testing in 17 counties:

• Bexar (beginning November 1, 2026)
• Brazoria
• Collin
• Dallas
• Denton
• El Paso
• Ellis
• Fort Bend
• Galveston
• Johnson
• Kaufman
• Montgomery
• Parker
• Rockwall
• Tarrant
• Travis
• Williamson

Different types of vehicles have different costs for car inspections.

• One-year safety: $7
• Two-year safety: $7
• Commercial: $40
• Trailer/motorcycle: $7
• Moped: $0.25
• Safety emissions (El Paso, Travis, and Williamson counties): $18.50
• Safety emissions (Dallas-Fort Worth and Houston): $25.50
• Emissions-only vehicles (El Paso, Travis, and Williamson counties): $11.50
• Emissions-only vehicles (Dallas-Fort Worth and Houston): $18.50

SR-22s

An SS-R2 is a certificate of financial responsibility that shows you are meeting the state’s minimum insurance requirements. You’ll need an SR-22 in Texas in the following situations:

• You have a suspended driver’s license due to a car crash.
• You’ve received more than one conviction for having no motor vehicle liability insurance.
• You’ve had a civil judgment filed against you two years from the date the decision was rendered.
• You’ve placed a security deposit with the Texas Department of Public Safety to comply with a crash default or crash suspension.
• You have excessive traffic violations or have accumulated a significant number of traffic tickets in a short time frame.
• You’re convicted of certain driving infractions, such as reckless driving or fleeing the scene of an accident.

You must hold a valid SS-R2 for two years from your most recent conviction. If you fail to maintain an SS-R2 for two years, it can result in additional enforcement actions or reinstatement fees.

Defensive Driving

Defensive driving is driving in a manner that uses safe driving strategies to let motorists avoid hazards. According to Texas laws, you can take a defensive driving course to dismiss one traffic ticket every 12 months; classes can be taken either online or in person. Note that some violations are not dismissable:

• Driving at or over 25 miles per hour above the posted speed limit
• Not having car insurance at the time of a violation or vehicle crash
• Passing a school bus
• Leaving the scene of a collision (a hit-and-run)
• Committing a violation in a construction zone
• Reckless driving

Serious Injury and Monetary Thresholds

In at-fault states like Texas, each party pays for damages based on their degree of fault. If you aren’t happy with the result, you can file a civil suit to compensate for economic damages such as medical expenses or lost wages. Claims can also cover noneconomic damages like pain, suffering, and anxiety.

Accident Reporting Requirements

In Texas, you are required to make a police report if injury, death, or property damage from an accident is worth over $1,000. If the accident involves at least $1,000 worth of death or injury, you must file a report immediately. If the accident involves at least $1,000 worth of property damage, the deadline to file a report is 10 days from the incident. You must also report an accident if it involves intoxicated driving, an uninsured motorist, or a vehicle that cannot move on its own. Failure to report by the deadline can result in a suspended license and up to $5,000 in fines⁹.

Price Discrimination

In Texas, it is legal for insurance companies to discriminate based on your credit score when deciding your insurance premiums. It is also permitted to discriminate based on gender, so men pay more for car insurance in this state. The difference is greatest between young men and women (teens and early twenties) and plateaus once drivers reach their early thirties and older.

When Is a Car Declared a Total Loss?

A total loss is when repairs for your vehicle would cost more than the vehicle’s estimated value, the car cannot be safely repaired, or the damage meets your state’s total loss guidelines. In Texas, if the repairs cost more than 100 percent of the car’s actual market value, it is declared a total loss.

Contact Information

Now that you’re familiar with Texas’ driving laws, it’s time to look into registering your car, getting a copy of your car’s title, and contacting the state’s insurance department.

State Car Registration Information

You need insurance to register a car in Texas. Take these steps to register your vehicle, whether it’s for the first time or for a renewal:

1. Gather the fees you’ll need to register your car or renew your registration.

   Fee	Amount
   Registration	$51.75
   Local	$10
   Inspection	$7.50
   Processing and handling	$4.75
   Special plates	$0

2. If you are registering a new car, you need to visit your local county tax-assessor collector office with your insurance card, proof of vehicle inspection, and proof you own the vehicle. Find your nearest location at https://www.txdmv.gov/tax-assessor-collectors/county-tax-offices.
3. To renew your registration, you can complete the process online at https://renew.txdmv.gov/Renew/RegistrationRenewalServlet and get a $1 discount.
4. You can also use the mobile app if you prefer. Download the Texas by Texas (TxT) mobile app, create an account, and renew your registration through the app’s interface.
5. If you prefer, you can register by mail. Send your renewal notice, a copy of your vehicle inspection report, proof of your current liability insurance, and your registration fee to your county tax office.
6. If you prefer to complete the process in person, visit the nearest DMV to show your documents, including your renewal notice and proof of your current liability insurance. Find your local DMV here: https://www.txdmv.gov/regional-service-centers.

How to Get a Copy of Your Car Title in Texas

Here’s how to get a copy of your car’s title if you need it to prove ownership:

1. Go to https://www.txdmv.gov/sites/default/files/form_files/VTR-34.pdf.
2. Print the form.
3. Fill it out.
4. Get it notarized.
5. Include a $2 payment in the envelope with the form if you mail it. Include a $5.45 payment if you go to the DMV in person.
6. Send it to this address:
   • Texas Department of Motor Vehicles
     1601 Southwest Parkway, Suite A
     Wichita Falls, TX 76302
7. You can also visit a DMV location in person to drop off the form and fee.

How to Contact Your State’s Insurance Department

If you have more questions about Texas’ insurance laws, you can contact its insurance department.

• Phone number: 800-252-3439
• Mailing address:
  • PO Box 12030
  • Austin, TX 78711-2030
• URL: https://www.tdi.texas.gov/

Cost of Car Repairs in Texas

If you are in an accident and need repairs, you should know that the average cost of labor and parts in Texas is on the higher end. The state ranks fifteenth in the country for car repair costs.

• Parts: $251.67
• Labor: $145.86
• Parts and labor: $397.53¹⁰

Crime and Fatalities in Texas

Whenever you move, it is essential to look at the crime rates in the area. The higher the crime rates are, the higher the insurance rates will be.

Motor Vehicle Theft

In Texas, the motor vehicle theft rate is 30 percent higher than the national average, making Texas tenth in the nation for car theft. According to the National Insurance Crime Bureau, the motor theft rate was 350 per 100,000 inhabitants in 2022¹¹.

San Antonio has the highest motor vehicle theft rate in Texas, with 550 thefts per 100,000 inhabitants in 2022. Many other cities in the state have higher motor vehicle theft rates than the state average. Here are the motor vehicle theft rates by city:

Traffic Fatalities

In 2022, Texas had higher traffic fatality rates than many other states, with 1.5 fatalities per 100 million vehicle miles traveled. This is 14 percent higher than the national average of 1.33 deaths per 100 million vehicle miles traveled¹².

Why is the traffic fatality rate so high? Texas has lower traffic levels and more open roads, resulting in speeding. Speeding and distracted driving are the two most common causes of traffic fatalities in Texas.¹³

Conclusion

Whether you are new to Texas or have lived there for years, brushing up on state-specific requirements and laws can save you from a traffic violation or registration error. If you are crossing state lines, check out our state-by-state statistic guide to stay informed on other states’ requirements and driving laws.