Texas Auto Insurance Requirements

Texas law requires drivers to provide proof of financial responsibility to cover bodily injury and property damage they may cause in an auto accident. Most Texans choose to fulfill this requirement by purchasing an auto insurance policy. If you choose this option, you must maintain minimum limits of coverage, as outlined in the table below.

When you purchase an auto insurance policy, your insurance company will send you a proof of insurance card or other document that lists the policy number, automobiles and drives insured under your policy, and the policy's expiration date. You must show proof of insurance when you:

• register your car,
• are asked for it by a law enforcement officer,
• have an accident, or
• get your car inspected.

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If you cannot provide proof of financial responsibility, you may be fined up to $350. Repeat offenses could result in fines up to $1,000, vehicle impoundment, or suspension of your license.

As one of the many “Tort” states, the laws governing Texas motor vehicle operators simply states that you are financially responsible for any damages incurred in an auto accident in which you are at fault. This includes both property damage and personal injury.

You may want to consider purchasing limits of coverage higher than those required by law to protect your assets or property, as you may be personally responsible for any damages above the policy limits.

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Auto Insurance for Leased Vehicles in Texas (TX)

Most leasing companies in Texas typically require drivers to maintain insurance coverage which exceeds the minimums set by Texas state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

• Bodily injury liability coverage: $100,000 per person/$300,000 per accident
• Property damage liability coverage: $50,000
• Comprehensive and collision coverage: $500 maximum deductible

Read about special considerations for drivers in:

• Dallas
• Fort Worth
• Houston
• San Antonio

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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.

Last Updated: August 19, 2010