What Texas law actually requires
Texas requires every driver to carry liability insurance. The state minimum is commonly expressed as 30/60/25, which breaks down as follows: $30,000 in bodily injury coverage per person injured, $60,000 in total bodily injury coverage per accident, and $25,000 in property damage coverage per accident.
These are the minimums needed to legally register and operate a vehicle in Texas. They are not a recommendation. They are a floor set decades ago that has not kept pace with what accidents actually cost today.
A single emergency room visit in Texas can exceed $30,000. A moderate collision involving two people with injuries can easily push past $60,000 in medical costs alone. When your liability limits run out, your personal assets are what covers the rest.
The coverage types you need to know
An auto policy is not a single number. It is a set of separate coverages, each doing a different job. Here is what each one covers and why it matters.
| Coverage Type | What It Does | Required in Texas? |
|---|---|---|
| Bodily Injury Liability | Pays for injuries to others when you are at fault in an accident | Yes (state minimum: $30,000 per person / $60,000 per accident) |
| Property Damage Liability | Pays for damage to another person's vehicle or property when you are at fault | Yes (state minimum: $25,000 per accident) |
| Collision | Pays to repair or replace your vehicle after an accident, regardless of fault | No, but typically required by lenders on financed vehicles |
| Comprehensive | Covers non-collision losses: hail, theft, flood, fire, animal contact | No, but typically required by lenders on financed vehicles |
| Uninsured / Underinsured Motorist | Protects you when the at-fault driver has no insurance or not enough | No, but must be offered and declined in writing |
| Personal Injury Protection (PIP) | Pays your medical bills and lost wages regardless of fault | No, but must be offered and declined in writing |
Why minimum limits rarely hold up
The 30/60/25 minimums made more sense when vehicles cost less and medical care cost less. Today, a mid-size SUV can cost $45,000 or more to replace. A serious accident with injuries can generate six figures in bills before a case settles. If you cause an accident that exceeds your liability limits, the injured parties can pursue your personal assets to cover the difference.
Most insurance professionals recommend carrying at least $100,000 per person / $300,000 per accident in bodily injury liability, and at least $100,000 in property damage. Drivers with significant assets -- home equity, savings, retirement accounts -- should consider even higher limits or an umbrella policy that extends coverage above the auto policy limits.
Texas follows a modified comparative fault rule. If you are found to be more than 50% at fault in an accident, you cannot recover damages from the other driver. Carrying adequate liability and uninsured motorist coverage on your own policy becomes your primary financial protection.
Uninsured drivers are a real exposure in Texas
Texas consistently ranks among the states with the highest percentage of uninsured drivers. Estimates place the uninsured driver rate in Texas between 14% and 20%, depending on the county and data source. That means roughly one in six or seven drivers you share the road with is carrying no insurance at all.
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when the at-fault driver has no policy, or when their policy limits are too low to cover your damages. In Texas, carriers are required to offer this coverage, but drivers can waive it in writing. Many do, often without fully understanding what they are giving up.
What changes when you have a loan or lease
If you financed or leased your vehicle, your lender or leasing company almost certainly requires you to carry both collision and comprehensive coverage. This protects their financial interest in the vehicle. Once the loan is paid off, those coverages become optional -- but optional does not mean unnecessary.
Many drivers drop collision and comprehensive after paying off their vehicle to lower their premium. Whether that makes sense depends on the vehicle's current value and your ability to absorb a total loss out of pocket. A vehicle worth $18,000 with a $1,000 deductible may still justify keeping comprehensive, especially in North Texas where hail damage is frequent and costly.
How to think about the right coverage level for your situation
There is no single answer that fits every driver, but a few questions help frame the decision:
- What assets could be at risk if you caused a serious accident? The more you have to lose, the more liability coverage matters.
- Could you replace your vehicle out of pocket if it were totaled tomorrow? If not, collision and comprehensive coverage is worth keeping.
- Do you drive in high-traffic areas, commute frequently, or share the vehicle with other drivers? Higher exposure generally justifies higher limits.
- Have you reviewed your policy since your last rate increase? Carriers sometimes adjust coverage terms quietly during renewal cycles.
A coverage review is the fastest way to compare what your current policy actually provides against what your situation calls for. It does not require switching carriers or committing to anything. It gives you an accurate picture of where you stand.
Free Coverage Check
Not sure if your auto limits are right for your situation?
A licensed Texas agent can review your current policy, walk you through your liability exposure, and tell you where gaps exist. No cost. No obligation.
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