What Are the Insurance Requirements for Texas Drivers?


Quick Answer

Texas law requires that drivers of motor vehicles must establish proof of financial responsibility, according to Driving University. Drivers can establish this proof with an auto insurance policy, a surety bond or by depositing money with the Texas State Comptroller. As of December 2015, this deposit amount must be at least $55,000.

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Full Answer

Drivers who meet the state's financial responsibility law by purchasing liability insurance must buy a policy that covers a minimum of $25,000 in property damage per accident and $30,000 for each injured person, up to a total of $60,000 per accident, states the Texas Department of Insurance. This basic coverage, often called 30/60/25 coverage, does not cover a driver's car repairs or injuries, nor does it cover costs to other drivers and passengers beyond the policy limits. For this reason, the Texas Department of Insurance recommends that drivers consider additional coverage, such as medical payment, collision, and comprehensive coverage.

Insurance companies must provide Texas auto insurance buyers with a proof of insurance card, which drivers must show when they are involved in an accident, register or re-register a vehicle, obtain or renew a driver's license or get their car inspected, according to the Texas Department of Insurance. Penalties for violating Texas's financial responsibility laws can include fines, driver's license suspension, vehicle impoundment and jail time.

Insurance companies may refuse to sell a policy to people with poor driving records, states Driving University. In such cases, Texas law allows these drivers to purchase the required liability insurance from the Texas Automobile Insurance Plan Association.

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