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Texas Auto Insurance Minimums, Laws and Requirements

Each state requires registered drivers to carry a certain amount of Minimum Liability Coverage auto insurance.

Texas mandates all drivers in a household to be covered by liability insurance and have proof of insurance in the vehicle with them at all times. Drivers may also post a financial bond instead of purchasing insurance.

Anyone caught driving without insurance will be fined $175 to $350 with penalties increasing for the second and third offenses. On the third offense, a driver’s license will be suspended.

Texas Minimum Liability Coverage
Each state sets its own minimum liability amounts. In Texas they are as follows:

  • Bodily Injury for One Person: $25,000
  • Bodily Injury for All Injuries: $50,000
  • Property Damage: $25,000

Texas Uninsured/Underinsured Motorist Coverage
Some states require drivers to carry Uninsured/Underinsured (UM/UIM) motorist coverage. This protects a driver in case they are involved in an accident and the other person is not adequately covered by an auto insurance policy.

Texas does not require this coverage but recommends carrying more than the state minimum.

No Fault Insurance
In Texas, you are not required to carry no-fault insurance. Texas is a Tort state meaning that the driver at fault must pay a victim’s medical expenses. Further, the victim can also pursue compensation for additional lost wages as well as pain and suffering.