Texas liability insurance can help protect your finances in times of uncertainty. Imagine you are driving on Interstate 30 when you see a slowpoke ahead. You decide to change lanes, but you don’t see the pickup truck next to your car. The truck is hit and sent careening into the guardrail. All are fine, but the pickup of the other driver is broken.

You would be responsible for paying the other driver to replace your truck if you don’t have insurance. You have enough liability insurance to pay the bill.

Texas law requires liability car insurance to be able to drive legally. It covers injuries and damages if you are found at fault in an accident. It won’t cover everything.

Continue reading to find out:

What is Texas’ liability insurance coverage?

You’ll see two parts to your Texas liability car insurance (or any other state for that matter):

  • Bodily injury liability. This covers the costs of others for medical bills, lost earnings, and funeral costs, if they are injured in an accident that you caused. If you are sued for damages due to an accident, it can cover your legal fees and bills.

  • Property damage liability. This covers the costs of repairing property that you damaged in a traffic accident, such as someone’s vehicle or fence. It can also pay for damage to other people’s property or rent a vehicle for the other driver.

What is Texas liability insurance not covering?

These are some examples of liability car insurance that Texas doesn’t cover:

  • Your medical bills, pain and loss or wages.

  • Health insurance for household members who are injured in an accident that you cause.

  • Repair or replacement costs for your vehicle or truck.

  • Towing for your vehicle.

  • Rent a car while yours is at the shop.

Texas Liability Insurance requirements

Texas law requires drivers to have minimum liability insurance in order to be able to drive legally. These minimum requirements, also known as “limits”, are divided into three parts.

  • The bodily injury limit per person ($30,000) is the maximum that your insurer will pay to cover injuries sustained by one person in an accident you caused. Texas law requires that you have minimum $30,000 of bodily injury liability coverage.

  • Limit on bodily injury per accident ($60,000). This is the maximum amount your insurer will pay for injuries sustained by all victims of an accident (excluding you and your household members). Texas law requires that you have $60,000 of bodily injury liability coverage per incident.

  • Property damage limit per accident ($25,000). This is the maximum amount your insurer will pay to cover all property damage caused by an accident. Texas law requires that you have $25,000 of property damage liability coverage.

Note: When you lease your vehicle, your leasing company may require that you have greater liability limits than Texas’ minimum requirements plus comprehensive coverage.


You will need enough liability insurance to protect your net worth. This is your total cash, investments, and personal property, minus any debt. Although Texas has the minimum liability limits, you can still drive legally in Texas. However, repair and medical costs can run into the hundreds of thousands of dollars following a serious crash. You will be responsible for all costs beyond your policy’s limit and you’ll have to pay out-of-pocket. You could be sued by the people who were injured and your home or wages could be withheld.

Do I need more than Texas’s liability insurance?

You might be wondering what you can do for yourself and your family to prevent them from being forced to pay out of pocket for repair costs or hospital visits after an accident. You and your passengers are not responsible for any damage caused by other drivers. However, there are other scenarios you might find yourself in. These are where optional car insurance coverages can be very useful.

We’ve highlighted the most common coverage types that can help you after an accident (regardless if you were at fault):

Coverage type

What it costs for

After an accident with an uninsured, or minimally-insured driver, you will be responsible for the medical and repair costs. If you decide to decline coverage, Texas law requires that you notify your insurer in writing.

You are responsible for your own car repairs due to traffic-related accidents.

You are responsible for car repairs due to events beyond your control such as theft, weather, or hitting an animal.

You and your passengers can be responsible for medical expenses, lost wages, and funeral costs resulting from an accident. If you decide to decline coverage, Texas law requires that you inform your insurance company in writing.

You and your passengers will be covered for medical expenses after an accident.

Towing or a battery jump for your vehicle if it breaks down.

* Your lender may require that you have collision and comprehensive insurance if you lease or finance your vehicle.

What is the cost of Texas liability car insurance?

Texas’s minimum liability car insurance is $774 per annum. This is more than the national average of $685.

Your price could vary, sometimes quite a bit. In Texas, as well as other states, insurers base their rates on a wide range of factors including your age, vehicle type, location, credit score, and much more.

NerdWallet has an analysis of Texas cheap car insurance to help you find the best rates.

There’s more to car insurance that a low price. When choosing an insurance company, other factors to consider include customer satisfaction, ease-of-use, coverage types, discounts offered, and pricing. NerdWallet has you covered with its roundup of Texas’ best car insurance.

What happens to me if I don’t have Texas liability insurance?

Texas laws are strict and you should not be disrespectful. The number of times that you have been arrested for driving without Texas liability car insurance will determine the penalties. You can generally expect:

  • Fines up to $1,000

  • Impoundment.

  • Suspended driver’s license and vehicle registration

  • Premiums for car insurance are higher.

Questions frequently asked

Texas requires liability car insurance.

Yes. If you own a car and reside in Texas, liability insurance is required. If you finance or lease your vehicle, you may be required to have comprehensive and collision coverage.

What Texas liability insurance do you need?

Texas law requires that you have at least 30/60/25 liability coverage. This means that you need at least $30,000 of bodily injury coverage per person, $60,000 per accident bodily injury coverage and $25,000 per accident property damage coverage. When you shop for insurance, your insurer will make sure that you have the minimum coverage.

Where can I find my Texas liability card?

After you have renewed or started a policy, many insurance companies will mail you your insurance card. Your insurance card can be printed online, stored on your smartphone or downloaded through the app of your insurer. This card is useful in the event that a police officer requests proof of insurance, or to renew or register your driver’s licence or to register your vehicle.