Texas Car Insurance: What You Need and How to Pay Less

Texas is an at-fault state: the driver who causes an accident is responsible for the other side's injuries and damage, and that driver's liability insurance is what pays. That's why state law sets a minimum amount of liability cover for every vehicle, and why checking it is automated through TexasSure. Here is what the law requires, what Texans typically pay, and where the savings are.

What Texas law requires

Every Texas driver needs liability insurance of at least $30,000 per injured person, $60,000 per accident for injuries, and $25,000 for property damage, known as 30/60/25 coverage (Texas Department of Insurance, updated December 11, 2025).

Two more coverages are part of every Texas policy unless you turn them down:

Personal injury protection (PIP) pays medical bills and some lost income for you and your passengers, whoever caused the accident. All Texas auto policies include PIP; if you don't want it, you must tell the insurer in writing.
Uninsured/underinsured motorist coverage pays for your injuries and damage when the at-fault driver has no insurance or too little. Insurers must offer it, and again you must reject it in writing if you don't want it.

Think twice before rejecting either. The Texas DMV estimates that about 11.87% of Texas drivers were uninsured as of September 2025, so roughly one in eight drivers you share the road with couldn't pay for damage they cause.

Minimum is the floor, not a recommendation

$25,000 of property damage doesn't go far when a new pickup or SUV can cost more than that to replace, and injury claims above your limits are your personal responsibility. Most drivers with savings or a home to protect choose higher limits. If your car is financed or leased, the lender will also require collision and comprehensive cover. For how limits and deductibles trade off against the premium, see cheap full coverage auto insurance.

TexasSure: how coverage is checked

TexasSure is the state's insurance verification database, a joint project of the Texas departments of motor vehicles, insurance, public safety and information resources. Insurers report policies to it, and it identifies vehicles without the required coverage (Texas DMV). Police can check it at a traffic stop, so keep your policy active and make sure the vehicle details your insurer holds match your registration.

Penalties for driving uninsured

A first offense can bring a fine of up to $350. A repeat offense can mean a fine of up to $1,000 and a suspended driver's license (Texas Department of Insurance, updated February 26, 2026). Court costs and fees come on top, and a gap in coverage usually means paying more for your next policy.

What Texans pay

The average full-coverage premium in Texas was $2,891 a year, about 1% below the national average of $2,922 (Experian, “Car Insurance Average Costs by State,” published September 9, 2026, data through August 2026). That puts Texas in the middle of the national table — see how it compares in the cheapest and most expensive states. Within Texas, prices vary a lot by ZIP code, with big-city premiums typically well above small-town ones.

How to find cheaper Texas car insurance

Compare several insurers. Texas is a large, competitive market, and the same driver can get very different prices. Compare identical limits and deductibles so the quotes are like for like.
Check an insurer's record as well as its price. The Texas Department of Insurance publishes complaint information about insurers on its website.
Choose your deductibles deliberately. A higher collision and comprehensive deductible lowers the premium, but only makes sense if you could pay it after an accident.
Drop physical-damage cover on an older car once the premium for collision and comprehensive gets close to what the car is worth. Keep liability, PIP and uninsured motorist cover.
Bundle and ask for discounts: multi-policy, multi-car, safe driver, defensive driving course, good student, paid-in-full. The full list is on our car insurance discounts page.
Check your driving record for errors before renewal. An old violation that should have dropped off, or one that isn't yours, can quietly raise your price.
Never let coverage lapse. Besides the fines, a lapse shows up as higher risk when you buy your next policy.

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Written by the CarInsuranceHub.com editorial team. Last updated September 2026. Requirements are set by Texas law and can change; the Texas Department of Insurance (tdi.texas.gov) has the current rules.