The law in Texas is very specific concerning drivers carrying
auto insurance in Texas: it is simply a mandatory law.
Knowing that it is a law, there are still facts Texas citizens
should know about Texas auto insurance.
What is the law concerning Texas Auto Insurance?:
Texas requires drivers to carry, at a minimum, the following
Texas auto insurance policy coverages:
Texas auto liability insurance limits:
The auto insurance laws in Texas require drivers to carry
liability limits in at least the following limits (explained
If you were to call a Texas insurance company or Texas insurance
agent and ask "What is the state minimum for complying
with the law on Texas roads", they would answer "You
must carry at least 25/50/25." This means the
Bodily Injury Liability:
In Texas, drivers must carry bodily injury liability limits
of $25,000 per person and $50,000 per accident. Texas
law requires that you carry liability limits that would AT
LEAST pay out $25,000 in bodily injury to ONE person in an
accident in which you were found to be at fault and $50,000
for total bodily injuries in the accident.
Property Damage Liability:
In Texas, drivers must carry property damage liability
limits of at least $25,000. What this means is that a driver's
Texas auto insurance policy must be sufficient to cover at
least $25,000 to pay for someone else's car in the event of
an accident in which you were found to be at fault.
These coverages comply exactly with Texas auto insurance
law. This should not be taken as legal advice on what coverages
you SHOULD purchase to drive in Texas, but merely what it
takes to drive legally on Texas roads.
It should be noted that most Texas insurance agents advise
clients to carry higher limits of liability and additional
coverages on a Texas auto insurance policy.
A common question Texas drivers ask is: "What if I
am in an at-fault accident and I cause more damage (either
bodily injury or property damage) than my policy limits cover?"
The answer to this question is as follows: YOU are personally
responsible for any damages incurred as a result of an accident
in which you are found to be at fault. You can be legally
sued in court for damages over-and-above of your Texas auto
insurance policy limits. Your insurance company is no longer
liable to pay any damages after your limits of liability have
been exhausted (maxed out).
More Texas auto insurance guideline and coverages are