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Auto Insurance TX Regulations

Auto insurance TX laws mandate drivers to maintain bodily injury liability limits (BI/PD) of $30,000 per person, $60,000 per accident and $25,000 in property damage liability (30/60/25). These auto insurance TX requirements apply to each of Texas’ nearly 13.5 million private passenger drivers.

Not only do auto insurance TX laws require drivers to maintain continuous financial responsibility while driving TX roadways, auto insurance TX laws require drivers to carry proof of their auto insurance TX liability at all times. Auto insurance TX laws require drivers to immediately display proof of their auto insurance TX liability as follows:

  • After an accident
  • Upon the request of a TX official
  • When registering a vehicle
  • When obtaining or renewing a driver’s license
  • Upon vehicle inspection


Drivers that fail to display proof of their auto insurance TX liability are subject to vehicle impoundment, license suspension, registration revocation, jail time and fines as much as $4,000.

TexasSure

Along with visual displays of auto insurance TX identification, the state of Texas uses the TexasSure system to verify drivers’ compliance to auto insurance TX requirements. Auto insurance TX carriers must enter all policy information electronically into the TexasSure system and must update this auto insurance TX policy information regularly. The auto insurance TX information includes policy numbers, drivers’ license numbers, vehicle identification numbers, and policy dates. Texas officials use TexasSure to obtain real-time auto insurance TX policy information, making drivers immediately liable for noncompliance to the auto insurance TX requirements.

Auto Insurance TX Liability

Similar to most states, auto insurance TX liability insures the other party from injuries incurred due to the policyholders’ negligence during an accident. Auto insurance TX liability also reimburses the policyholder’s legal fees incurred as result of defending himself from an accident claim in court.

PIP

Auto insurance TX regulations require TX carriers to offer personal injury protection (PIP) with every auto insurance TX policy. PIP coverage reimburses medical and funeral expenses incurred in an accident, regardless of fault. Auto insurance TX policyholders can reject PIP coverage but must do so in writing. Auto insurance TX carriers also offer medical payment coverage which also pays medical and funeral expenses. Auto insurance TX regulations do not require written rejections for this coverage, though some auto insurance TX carriers may require the written rejection for their files.

UM/UIM

Texas estimates that 20% of its 13.5 million drivers are noncompliant with the auto insurance TX financial responsibility requirements. To offer policyholders additional protection, Texas requires all auto insurance TX carriers to offer uninsured and underinsured motorist coverage options to their auto insurance TX policyholders. With a $250 deductible, these coverages insure the policyholders and their listed drivers for injuries incurred by uninsured and underinsured drivers. Auto insurance TX policyholders can reject this coverage but must do so in writing.

TAIPA

Texas does not accept carrier rejections as a valid excuse for noncompliance to the auto insurance TX requirements. Drivers that have been rejected by two or more auto insurance TX carriers can obtain auto insurance TX coverage through the Texas Automobile Insurance Plan Association (TAIPA). TAIPA auto insurance TX policies provide policyholders with minimum policy coverages that include 30/60/25 BI/PD, 30/60/25 UM/UIM and $2,500 PIP. Policyholders can reject UM/UIM and PIP coverage in writing but cannot add any additional coverages to this basic auto insurance TX policy, such as comprehensive and collision coverage.