If you're driving in Texas, you're legally required to carry auto insurance. But here's what catches most people off guard: the state minimum coverage might keep you legal, but it won't necessarily keep you financially safe. Understanding what those numbers—30/60/25—actually mean can save you from a costly surprise down the road.
Let's break down exactly what Texas requires, what those requirements cover (and what they don't), and how to decide whether minimum coverage is enough for your situation.
What Does 30/60/25 Coverage Mean?
Texas law requires you to carry liability insurance with minimum limits of 30/60/25. These numbers represent thousands of dollars in coverage, and each one serves a specific purpose:
$30,000 per person for bodily injury: This is the maximum your insurance will pay for one person's injuries in an accident you cause. If someone needs surgery, physical therapy, and misses work for weeks, medical bills can easily exceed this amount.
$60,000 per accident for bodily injury: This is the total amount your insurance will pay for all injuries in a single accident, regardless of how many people are hurt. If you hit a car with four passengers and they all sustain injuries, this $60,000 is split among everyone.
$25,000 for property damage: This covers damage you cause to other people's property—usually their vehicle, but also fences, mailboxes, or storefronts. With the average new car price hovering around $48,000 in 2024, this limit can fall short quickly if you total someone's newer vehicle.
Here's the critical part: liability insurance only covers damage and injuries you cause to other people. It doesn't pay a dime to fix your own car or cover your medical bills. If you're at fault in an accident and your car is totaled, you're paying for a replacement out of pocket.
The Real Cost of Driving Without Insurance in Texas
Texas doesn't mess around when it comes to uninsured drivers. The state uses an electronic database system called TexasSure that links your insurance information directly to the DMV. If your policy lapses—even for a day—your insurance company automatically notifies the state.
Get caught driving without insurance and you're looking at fines between $175 and $350 for a first offense. But that's just the beginning. You'll also face an annual surcharge of $250 for three consecutive years—that's an extra $750 on top of your fine. Second offenses bring fines up to $1,000, potential license suspension, and possible vehicle registration suspension.
The consequences get significantly worse if you cause an accident while uninsured. You'll be 100% liable for all injuries and property damage, potentially facing fines up to $4,000 and up to one year in jail if the accident results in serious injury or death. Your vehicle could be impounded for 180 days at $15 per day, adding another $2,700 to your tab.
Is Minimum Coverage Enough for You?
Meeting the legal minimum keeps you out of trouble with the law, but it might not be enough to protect your financial future. Think about what you'd be on the hook for if your liability limits run out after an accident.
Let's say you cause an accident and the other driver's medical bills come to $50,000. Your policy pays the first $30,000, but you're personally responsible for the remaining $20,000. Don't have it? The injured party can sue you, potentially garnishing your wages or placing liens on your assets. If you own a home, have savings, or earn a decent income, minimum coverage leaves you exposed.
Many insurance experts recommend liability limits of at least 100/300/100 if you have assets to protect. The cost difference is often less dramatic than you'd think—sometimes just $20-40 more per month for significantly better protection.
Understanding Full Coverage vs. Liability Only
When you hear someone mention "full coverage," they're typically talking about a policy that includes liability insurance plus collision, comprehensive, and often uninsured/underinsured motorist coverage. Here's what each component covers:
Collision coverage pays to repair or replace your vehicle after an accident, regardless of who's at fault. If you slide into a guardrail on an icy road or get rear-ended at a stoplight, collision coverage handles your car repairs.
Comprehensive coverage protects you from non-collision events like theft, vandalism, hail damage, or hitting a deer. Given that Texas has the second-highest auto theft rate in the nation and frequent severe weather events, comprehensive coverage offers valuable peace of mind.
Uninsured/underinsured motorist coverage steps in when you're hit by someone without insurance or without enough insurance to cover your damages. This is particularly important in Texas, where a notable percentage of drivers operate without proper coverage.
In Texas, the average cost for minimum liability insurance runs between $600 and $700 per year. Full coverage averages around $2,540 annually in 2025 (about $212 per month). Whether that extra cost makes sense depends on your vehicle's value and your financial situation. If your car is worth $3,000 and you have $5,000 in savings to replace it, liability-only might work. If you're driving a newer vehicle or couldn't afford to replace your car without insurance, full coverage is worth the investment.
How to Get Started with Texas Auto Insurance
Shopping for auto insurance doesn't have to be overwhelming. Start by getting quotes from at least three different insurers—rates can vary dramatically from company to company for the same coverage. When comparing policies, don't just look at the premium. Check the deductibles, understand what's included, and read reviews about how companies handle claims.
Ask about discounts. Most insurers offer price breaks for bundling multiple policies, maintaining a clean driving record, completing defensive driving courses, or having certain safety features in your vehicle. Some companies also offer discounts for paying your premium in full upfront or setting up automatic payments.
Once you're insured, keep proof of insurance in your vehicle at all times. Texas accepts electronic proof on your phone, but it's smart to keep a physical copy as backup in case your phone dies. Review your coverage annually—as your car depreciates or your financial situation changes, you might adjust your coverage accordingly. The goal is to find the sweet spot between legal compliance, financial protection, and affordable premiums that fit your budget.
