Liability Insurance: Texas Vehicle Requirements

Liability insurance is a type of auto insurance that is required by law in Texas. It covers the cost of damages and injuries caused by the policyholder to other vehicles and their drivers in the event of an accident. The minimum coverage required by Texas law is $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 per accident for property damage. This basic coverage is often referred to as 30/60/25.

Liability insurance does not cover the policyholder's own vehicle or injuries. Other types of coverage, such as collision and comprehensive insurance, can be added to a policy to provide additional protection.

What does Texas liability insurance cover?

Texas liability insurance is there to protect your finances in the event of an accident. It covers injuries and damage you may cause while driving, but only if you're found to be at fault.

Liability insurance in Texas is split into two parts:

Bodily Injury Liability

This covers other people's costs for things like medical bills, lost wages, pain and suffering, and funeral costs if they're injured in a traffic accident that you cause. It can also cover your legal fees if you're sued after an accident. In Texas, you must have at least $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident.

Property Damage Liability

This covers other people's costs to repair property you damage in a traffic accident, such as someone else's car or fence. It may even cover other people's belongings that are destroyed in a car accident or the cost of a rental car for the other driver. In Texas, you must have a minimum of $25,000 in property damage liability coverage per accident.

What Texas Liability Insurance Doesn't Cover

Liability insurance in Texas will not cover your own medical bills, pain and suffering, lost wages, or costs to repair or replace your car or truck. It also won't cover towing services for your vehicle.

What does Texas liability insurance not cover?

Texas liability insurance is the minimum amount of coverage you need to drive legally in Texas. It covers the cost of damages and injuries to other vehicles and drivers, but it does not cover the driver who holds the insurance policy. Here is what Texas liability insurance does not cover:

• Your medical bills, lost wages, or pain and suffering
• Repair or replacement costs for your vehicle
• Towing services for your car
• A rental car, if your car is being repaired
• Medical expenses for your passengers injured in an accident you caused

It is important to note that liability insurance does not cover you or your vehicle. It only covers the other drivers and their passengers in the event of an accident where you are at fault.

Texas liability insurance requirements

Texas law requires drivers to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. Liability insurance covers the cost of repairing or replacing another driver's car and pays for other people's medical expenses if you are at fault in an accident.

In Texas, drivers are required to have a minimum amount of liability insurance, known as 30/60/25 coverage. This means that you must have at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident. These minimum requirements are often written as 30/60/25.

Liability insurance in Texas covers the cost of damages and medical expenses for another party in a car accident for which you are at fault. This includes medical bills, lost wages, pain and suffering, and funeral costs for another driver and their passengers. It also covers the cost of repairing someone else's property, such as their car or fence.

It is important to note that liability insurance does not cover your own medical bills, pain and suffering, lost wages, or the cost of repairing or replacing your car.

If you are caught driving without liability insurance in Texas, you may face fines of up to $1,000, suspension of your driver's license, and higher car insurance premiums in the future.

Should I get more than just liability insurance in Texas?

In Texas, drivers are legally required to have liability car insurance coverage, which includes a minimum of $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 per accident for property damage. This basic coverage is called 30/60/25. However, you may want to consider getting more than just liability insurance.

Liability insurance only covers the other driver's car repair and medical bills if you cause an accident. It does not cover repairs or replacement of your car or treatment for your injuries. Therefore, you may want to consider additional types of coverage, such as:

• Collision coverage: This pays for damage to your car after an accident, regardless of fault.
• Comprehensive coverage: This covers damage to your car from non-collision events, such as theft, vandalism, or natural disasters.
• Uninsured or underinsured motorist coverage: This protects you in the event of an accident with a driver who does not have sufficient insurance or does not stop. It covers auto damage, medical treatment, lost wages, pain and suffering, and other expenses.
• Medical payments coverage: This pays for your medical bills resulting from an accident.
• Personal injury protection: This covers your medical bills, lost income, and the cost of a caregiver.

Additionally, Texas has one of the highest numbers of uninsured drivers in the United States, with approximately 12% of its drivers lacking car insurance in 2023. Therefore, it may be wise to consider uninsured motorist coverage to protect yourself in the event of an accident with an uninsured driver.

When deciding how much liability coverage and what additional coverages to get, consider factors such as car prices, the high cost of medical care, and the prevalence of severe weather events in Texas, which can lead to increased rates due to comprehensive coverage claims for hail damage.

What happens if I drive without liability insurance in Texas?

Texas law requires drivers to show proof that they can pay for any accidents they cause. Most drivers do this by purchasing auto liability insurance. Liability insurance pays to repair or replace the other driver's car, or other damaged property, and pays other people's medical expenses when the policyholder is at fault in an accident.

If you choose to drive without liability insurance in Texas, you could face a number of penalties. Firstly, you could receive a fine of up to $1,000. For a first offence, you'll have to pay fines of $175-$350. If you're caught driving without insurance for a second or subsequent time, the penalties are more severe, with fines ranging from $350 to $1,000.

In addition to fines, you may also have to pay a $250 license surcharge per year for three years, and your insurance costs are likely to rise after a lapse in coverage. If you are caught driving without insurance multiple times, you may also face vehicle impoundment for up to 180 days, vehicle registration suspension, and license suspension. If you are in an accident while uninsured, you could face up to one year in jail if people are seriously injured or killed. You will also be liable for any and all physical injuries and property damage resulting from the accident.

Frequently asked questions