Texas requires liability insurance, but the rules are simpler than most states

Yes, Texas requires car insurance — but only liability coverage, which pays for damage or injuries you cause to someone else. You do not have to carry collision or comprehensive coverage, which protect your own vehicle. The state's minimum is $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage. If you cause a wreck and cannot pay, Texas can suspend your license, seize your registration, and pursue you for the full cost.

The catch: if you financed or leased your car, your lender will require you to carry collision and comprehensive too, even though the state does not. If you own the car outright, you can legally drive with only liability — though that leaves you paying out of pocket if someone hits you or a tree falls on your car.

Key Takeaways

  • Texas law requires only liability insurance ($30,000/$60,000/$25,000), not collision or comprehensive coverage.
  • If you financed or leased your vehicle, your lender will require collision and comprehensive regardless of state law.
  • Driving without insurance in Texas can result in license suspension, registration seizure, and civil lawsuits for accident costs.
  • You can prove you have insurance by showing your policy, ID card, or electronic proof on your phone at a traffic stop.
  • If you cannot afford insurance, some Texas insurers offer low-income programs or you can shop for the minimum coverage to reduce cost.

What liability insurance covers and what it does not

Liability insurance pays medical bills, lost wages, and property repairs for the other person if you are at fault in an accident. It does not pay for your own injuries, your own car damage, or your own lost income. If you hit a parked car and cause $8,000 in damage, your liability coverage pays the owner. If that same accident breaks your arm and damages your own bumper, you pay those costs yourself unless you also carry medical payments coverage or collision.

The Texas minimum of $30,000 per person sounds like enough until you see a real injury claim. A broken leg, surgery, and six months of physical therapy can easily exceed $30,000. If you cause that accident and your coverage maxes out, the injured person can sue you personally for the rest. That is why many insurance agents recommend carrying $100,000 per person and $300,000 per accident — it costs only slightly more than the minimum but protects your wages and assets.

What happens if you drive without insurance

Texas treats uninsured driving seriously. If you are stopped by police and cannot show proof of insurance, you face a fine starting at $175 and up to $350 for a first offense. A second offense within three years costs $250 to $500. The officer can also impound your vehicle on the spot.

If you cause an accident without insurance, the consequences are worse. The other driver can sue you directly, and you will owe them out of pocket. Texas also has a points system: an uninsured accident adds points to your driving record, and enough points trigger an automatic license suspension. You can also be required to file an SR-22 — a certificate of financial responsibility — with the Texas Department of Public Safety for three years after an uninsured accident. This document proves you are insured going forward, and it costs extra to file.

If you cause injury or significant property damage without insurance, you can face criminal charges. Texas Penal Code § 32.34 makes it illegal to cause injury or death while driving uninsured, and conviction can mean jail time and fines up to $5,000.

Financed and leased vehicles have stricter requirements

If you borrowed money to buy your car or leased it, your lender or leasing company will require you to carry collision and comprehensive coverage in addition to liability. Collision pays to repair or replace your car if you hit something or someone hits you. Comprehensive covers theft, weather, vandalism, and animal strikes. Your lender requires these because the car is collateral for the loan — they want to know it will be repaired or replaced if damaged.

The lender sets the deductible (usually $500 or $1,000) and may require you to name them as a loss payee on the policy, meaning they receive the insurance payout if your car is totaled. You cannot drop these coverages without the lender's permission, even if you wanted to. Once you pay off the loan or the lease ends, you can drop collision and comprehensive if you own the car outright and choose to take the risk.

How to prove you have insurance in Texas

At a traffic stop, you can show the officer your physical insurance ID card, a digital copy on your phone, or a printed policy. Texas law allows electronic proof, so a photo of your card or a screenshot from your insurer's app counts. You do not have to carry a paper card, though many people do because it is simpler.

If you are in an accident, exchange insurance information with the other driver and take photos of the scene and damage. Report the accident to your insurance company as soon as possible — most policies require you to report within a certain timeframe, often 24 to 72 hours. If the other driver does not have insurance, your own uninsured motorist coverage (if you carry it) will cover your repairs and medical bills, and you can pursue the other driver in small claims court for your deductible.

Finding affordable insurance if cost is a barrier

If you cannot afford standard insurance rates, Texas has a few options. Some insurers offer low-income programs with reduced rates for drivers who meet income thresholds — ask your insurer directly whether they participate. You can also shop for the state minimum liability coverage only, which is cheaper than fuller coverage, though it leaves you exposed if you cause a serious accident.

Comparison shopping matters: rates vary widely between insurers for the same coverage. Getting quotes from at least three companies can save hundreds per year. You can also ask about discounts for bundling home and auto insurance, paying in full upfront, completing a defensive driving course, or maintaining a clean driving record. Some insurers offer usage-based programs that track your driving and lower your rate if you drive safely.

If you have a poor driving record or have been uninsured, you may end up in the Texas FAIR Plan, which is a high-risk pool run by insurers. Rates are higher, but it guarantees you can get coverage. Once you have been insured for a year or two without incidents, you can shop for standard rates again.

The SR-22 requirement and how long it lasts

An SR-22 is a form your insurance company files with the Texas Department of Public Safety to prove you are insured. You need one if you were convicted of driving without insurance, caused an uninsured accident, received a DUI, or had your license suspended for traffic violations. The SR-22 requirement typically lasts three years from the date of the incident or suspension.

While you are under an SR-22, your insurer must notify the state if you cancel or let your policy lapse — even for a day. If that happens, the state automatically suspends your license again. You cannot simply switch to a cheaper insurer without making sure the new one files the SR-22 before your old policy ends. The filing itself is free, but insurers often charge a small fee ($15 to $25) to process it, and your premiums will be higher because you are considered high-risk.

Frequently Asked Questions

Can I get a ticket for not having my insurance card with me?

Yes, but only if you cannot prove you have insurance. If you have a policy but forgot the card, you can often show the officer your policy on your phone or provide your policy number so they can verify it. However, if you truly have no insurance, you will be cited.

What if I am hit by an uninsured driver in Texas?

If you carry uninsured motorist coverage, your own insurance pays for your repairs and medical bills (minus your deductible), and your insurer can pursue the other driver to recover the cost. If you do not carry uninsured motorist coverage, you can sue the other driver in small claims or civil court, but collecting money from someone without insurance is often difficult.

Does Texas have a state insurance fund I can use instead of buying a policy?

No. Texas does not offer a state-run insurance program. You must buy a policy from a private insurer or be placed in the FAIR Plan if you cannot find coverage elsewhere. The FAIR Plan is a last-resort pool, not a substitute for insurance.

If I move to Texas from another state, do I need to get a new insurance policy?

Not immediately, but you should update your policy to reflect your Texas address and vehicle registration. Your current insurer may adjust your rates based on your new location. You have until you renew your vehicle registration to update your insurance address.

What is the difference between liability and uninsured motorist coverage?

Liability pays for damage you cause to someone else. Uninsured motorist coverage pays for damage someone else causes to you when they have no insurance. Uninsured motorist is optional in Texas, but it protects you if you are hit by an uninsured driver.