Updated October 8, 2026. Texas statutes and statistics cited below were checked against the official sources in October 2026.
Car insurance is not just a legal requirement in Texas. It is the financial safety net that decides whether a serious crash is a bad month or a bad decade. I am Adam Miller, The Texas Bulldog, and I see what happens when the coverage runs out, so I will give you the straight answer: the Texas minimum keeps you legal, but it is rarely enough.
This guide covers what Texas law requires, what I suggest looking at instead, how many drivers around you have no insurance at all, what coverage costs, and what to do if you are hurt by someone whose insurance falls short.
Quick Answer
Watch: How Much Coverage You Need
If you would rather hear it than read it, here is the short version from me. The full breakdown, with the numbers and the sources, is below.
More answers like this on The Texas Bulldog YouTube channel.
Table of Contents
- Watch: How Much Coverage You Need
- Texas Minimum Car Insurance (30/60/25)
- Minimum vs. Recommended Coverage
- How Many Texas Drivers Are Uninsured?
- How Much Uninsured Motorist Coverage Do I Need?
- What Happens When the Minimum Runs Out
- PIP vs. MedPay
- Full Coverage vs. Liability-Only
- What Car Insurance Costs in Texas
- How to Lower Your Premium
- If You Were Hurt and Their Coverage Falls Short
- What Our Clients Say
- Frequently Asked Questions
- Visit Our Houston Office
Texas Minimum Car Insurance (30/60/25)
Texas drivers must carry a minimum amount of liability insurance, which pays for injuries and damage you cause to other people. The limits are written into Transportation Code §601.072 and are usually called 30/60/25:
The Texas Department of Insurance explains the same minimums in its auto insurance guide and adds that the limits “might be too low” if you cause a multi-vehicle crash or damage an expensive car. Liability coverage never pays for your own injuries or your own vehicle. It only pays other people.
Minimum vs. Recommended Coverage
There is no official “right” number, because the right amount depends on what you could lose. As a starting point, here is how the legal minimum compares with the limits many drivers look at when they want real protection:
| Coverage | Texas minimum | A common starting point |
|---|---|---|
| Bodily injury, per person | $30,000 | $100,000 |
| Bodily injury, per crash | $60,000 | $300,000 |
| Property damage | $25,000 | $100,000 |
| Uninsured / underinsured motorist | Must be offered; you can reject it in writing | Limits that match your liability limits |
| PIP or MedPay | PIP is included unless you reject it in writing | Consider $2,500 to $10,000 |
| Collision and comprehensive | Not required by law (a lender may require it) | Based on your vehicle’s value |
Under Texas law, auto policies also include PIP by default. You would have to decline it in writing if you do not want it. A licensed insurance agent can quote the minimum and a higher level side by side, which is the easiest way to see what the extra protection really costs.
How Many Texas Drivers Are Uninsured?
More than most people assume. The Insurance Research Council estimates that 15.4% of U.S. drivers were uninsured in 2023, up from 12.4% in 2017. Texas came in at 14.5%, which means roughly one in seven of the drivers you share the road with in Houston may have no insurance at all.
Uninsured drivers are on the rise
Estimated percentage of uninsured motorists in the United States, 2017 to 2023
How Much Uninsured Motorist Coverage Do I Need?
Uninsured and underinsured motorist coverage (UM/UIM) pays you when the driver who hit you has no insurance, or not enough. It also applies if you are hit by a driver who flees. The Texas Department of Insurance says insurance companies must offer you this coverage and that you have to tell the company in writing if you do not want it. That rule is in Insurance Code §1952.101.
A common approach is to match your UM/UIM limits to your liability limits. The reasoning is simple: you are carrying that liability coverage to protect other people from your mistakes, so it makes sense to carry the same amount to protect yourself from someone else’s. If you have a family, a mortgage, or income you could not replace, it is worth asking your agent to price the higher limits.
UM coverage matters most in hit-and-run crashes, which are common around Houston. Texas has specific rules about when it applies when the other driver is never found, and I walk through them in my hit-and-run guide and in the full Texas uninsured and underinsured motorist guide.
What Happens When the Minimum Runs Out
If you cause a serious crash and your coverage does not pay for all of it, the injured person can sue you for the difference. That puts your savings, your wages, and sometimes your home at risk. The same math works against you when you are the one who is hurt and the other driver carries only the minimum.
Who pays when the bills pass the limits?
A simplified example: $80,000 in medical bills and $10,000 in property damage
PIP vs. MedPay
Two coverages are often confused because both pay medical bills no matter who caused the crash. The Texas Department of Insurance describes them this way:
- Personal Injury Protection (PIP) pays your and your passengers’ medical bills, and also lost wages and other nonmedical costs. Texas auto policies include it unless you reject it in writing (Insurance Code §1952.152).
- Medical payments (MedPay) covers medical bills only, for you and your passengers, including if you are hurt while walking, biking, or riding in someone else’s car. It does not cover lost income.
Because PIP is broader, most drivers who want extra medical protection keep PIP rather than replacing it with MedPay. Either way, your own medical bills can start getting paid without waiting for anyone to decide who was at fault. Texas builds PIP into the policy, but Texas is still an at-fault state, not a no-fault state, so fault decides the rest of the claim.
Full Coverage vs. Liability-Only
“Full coverage” is not an official insurance term. It is shorthand for a policy that combines liability insurance with collision and comprehensive coverage.
- Liability-only pays for damage and injuries you cause to other people. It never pays to fix your own car or treat your own injuries.
- Collision pays to repair your car after a crash, regardless of fault.
- Comprehensive pays for theft, fire, flooding, vandalism, or hitting an animal.
If you finance or lease your vehicle, your lender will require collision and comprehensive. If you own an older car outright, liability-only with strong UM/UIM limits can be a reasonable way to control costs, but it should be a decision you make on purpose, not by accident.
What Car Insurance Costs in Texas
Prices have climbed. The National Association of Insurance Commissioners reports that the average U.S. auto insurance expenditure rose 14.0% in a single year, from $1,127 in 2022 to $1,282 in 2023. Your own premium depends on your driving record, credit history, vehicle, location, and the limits you choose.
What Americans spend on car insurance
Average annual auto insurance expenditure per vehicle, 2019 to 2023
How to Lower Your Premium Without Losing Protection
You do not have to choose between affordable and adequate. According to the Texas Department of Insurance, you may be able to get a discount if you have:
- Airbags, antilock brakes, and antitheft devices in your car
- A completed defensive driving or driver education course
- More than one car on a policy
- Other policies with the same insurance company
- No claims and a good driving record
Each company decides which discounts to offer. Raising your liability and UM/UIM limits often costs less than drivers expect compared with the difference it makes after a serious wreck, so ask for quotes at several levels before you decide.
If You Were Hurt and Their Coverage Falls Short
If another driver hurt you and their insurance is not enough, or they have none, you still have options. Your own UM/UIM and PIP coverage may pay, and in some cases the other driver can be pursued directly. These claims are often harder than people expect, because you are dealing with your own insurer, and insurers can dispute or undervalue claims. If the first offer feels too low, my guide to lowball offers after a car accident explains what to do next, and the settlement calculator can help you see what a claim may be worth.
You do not need money to talk to a lawyer. The Miller Law Firm works on a no-win, no-fee basis, so you pay nothing unless there is a recovery. My guide to no win no fee lawyers in Texas explains how that works, and the car accident lawyer fees guide shows what the numbers look like. If you are not sure what to do first, start with what to do after a car accident.
What Our Clients Say
“Thank you so Mr. Miller! My auto insurance told me that I wasn’t going to get anything at all. However, I got PAID!!! Thank you so much again”
— Tiera I.“Adam has resolved any legal issue I have presented him with. He is by far the most competent attorney in Houston. He doesn’t bark, he bites! Thank you for all of your help.”
— Mark H.The firm holds a 4.9-star rating on Google. Read more client reviews.
Frequently Asked Questions
What is the minimum car insurance required in Texas?
Texas requires liability coverage of at least $30,000 for bodily injury to one person, $60,000 for bodily injury to two or more people in one crash, and $25,000 for property damage. That is called 30/60/25 coverage, and it is set by Transportation Code §601.072.
Is 30/60/25 coverage enough in Texas?
It meets the legal requirement, but it often is not enough to cover a serious accident. A single crash involving significant injuries or an expensive vehicle can easily exceed $30,000 to $60,000 in damages, leaving you personally responsible for the rest.
How much car insurance coverage do I need?
It depends on what you could lose: your savings, your home equity, and your future wages. Many drivers start by looking at liability limits of $100,000 per person, $300,000 per accident, and $100,000 for property damage, then add uninsured and underinsured motorist coverage that matches those limits and Personal Injury Protection or medical payments coverage. A licensed insurance agent can price the options for your situation.
How much uninsured motorist coverage do I need?
A common approach is to match your uninsured and underinsured motorist limits to your liability limits, so you are as protected from other drivers as other people are from you. Texas insurers must provide this coverage unless you reject it in writing, and about 14.5% of Texas drivers were uninsured in 2023.
What happens if an uninsured driver hits me and I do not have UM coverage?
Without uninsured and underinsured motorist coverage, you would generally have to pay your own medical bills and vehicle repairs out of pocket, or pursue the at-fault driver directly, which is often difficult if they have no assets or insurance to collect from.
Does Texas require Personal Injury Protection (PIP)?
Texas auto policies include PIP coverage unless you reject it in writing. PIP pays your medical bills and lost wages regardless of who caused the crash.
How much does full coverage cost in Texas?
It varies by driver, but nationally the average auto insurance expenditure was $1,282 per vehicle in 2023, according to the National Association of Insurance Commissioners. Your actual premium depends on your driving record, credit, vehicle, location, and coverage limits.
Can I be personally sued if my insurance does not cover the full cost of a crash I caused?
Yes. If your policy limits are used up and damages remain unpaid, the injured person can pursue a lawsuit against you personally for the difference, potentially putting your savings, wages, and other assets at risk.
Does raising my liability limits cost a lot more per month?
Often the increase is modest compared with the financial exposure it removes after a serious crash. Quotes vary by insurer and driver, so ask your agent to price the minimum and a higher level side by side.
Do I need a lawyer if the other driver is uninsured or underinsured?
If you were hurt, it is worth a call. Your own uninsured or underinsured motorist coverage may pay, but you will be dealing with your own insurance company, which can dispute the claim. The Miller Law Firm offers a free consultation and works on a no-win, no-fee basis.
Visit The Miller Law Firm in Houston
If you would rather talk in person, call first and we will set up a free consultation. You can also find our Houston office on the map below.
The Miller Law Firm
4900 Woodway Drive, Suite 900
Houston, TX 77056
Phone: 713-572-3333
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Talk to The Texas Bulldog
If you were hurt and the other driver’s insurance is not enough, you do not have to figure out the insurance maze alone. Call for a free consultation and I will tell you honestly where you stand, what coverage may apply, and what to do next.
This page is for general information and is not legal or insurance advice. Every driver’s situation is different, and the coverage that is right for you depends on your assets and risk. Statistics are from the Insurance Research Council and the National Association of Insurance Commissioners, as published by Triple-I. Statutes were checked against the Texas Legislature’s online codes.
