Texas Auto Insurance Requirements
Texas law requires all drivers to carry minimum liability insurance, but here’s what most people don’t realize until it’s too late: the state minimum of 30/60/25 often leaves accident victims tens of thousands of dollars short of covering their actual losses. If you’ve been seriously injured by an underinsured driver, or you’re wondering whether your own coverage will protect your family, understanding these numbers could be the most important financial decision you make this year.
At Varghese Summersett, our personal injury attorneys have seen countless clients suffer devastating injuries only to discover the at-fault driver carried the bare minimum coverage. We’ve also helped clients navigate the complex process of recovering compensation through their own underinsured motorist policies. This guide explains what Texas requires, why it’s not enough, and how to actually protect yourself.
If you’ve been injured in a car accident and are dealing with insurance issues, call our team at (817) 203-2220 for a free consultation.
Minimum Car Insurance Texas
Under Texas Transportation Code § 601.072, every driver must carry liability insurance with at least these minimum limits:
$30,000 for bodily injury per person
$60,000 for total bodily injury per accident (when multiple people are hurt)
$25,000 for property damage per accident
This is commonly written as “30/60/25” coverage. You’ll see it on your insurance declarations page and in policy documents. Texas has required this coverage since 2008, when the minimums increased from the previous 20/40/15 standard.
These amounts represent the maximum your liability insurance will pay if you cause an accident that injures someone else or damages their property. Once you hit that ceiling, you’re personally responsible for any remaining costs.
What Does Liability Coverage Actually Pay For?
Liability coverage protects other people when you’re at fault in an accident. It pays for the other driver’s medical bills, lost wages, pain and suffering, and vehicle repairs. It does not pay for your own injuries or damage to your own car.
Here’s how those limits work in practice. Say you run a red light and hit another vehicle. The other driver breaks her leg and needs surgery. Her medical bills total $45,000, she misses six weeks of work ($8,000 in lost wages), and her car is totaled ($20,000).
Her damages exceed $73,000. Your 30/60/25 policy would pay $30,000 toward her injury claim and $20,000 for her car (assuming that was her actual value). She’s still $23,000 short on her medical bills alone, not counting pain and suffering or lost wages.
That remaining amount? She can sue you personally for it. Your savings, your house, your future wages could all be at risk.
Why Texas Minimum Coverage Is Dangerously Inadequate
The 30/60/25 minimum was set in 2008. It hasn’t changed since, despite medical costs rising dramatically. According to the Health Care Cost Institute, average emergency room visits now cost over $2,000. A single night in the hospital averages more than $3,000. Serious injuries requiring surgery, rehabilitation, or long-term care can easily exceed $100,000.
Our attorneys at Varghese Summersett regularly handle cases where clients face medical bills of $50,000, $100,000, or more. In 2023, we represented a client struck by a distracted driver in Fort Worth whose spinal surgery alone cost $127,000. The at-fault driver carried only minimum coverage. Without our client’s own underinsured motorist policy, she would have recovered less than a quarter of her medical expenses.
Property damage limits are equally outdated. The average new car in Texas costs over $48,000. Even used vehicles commonly sell for $25,000 to $35,000. If you total someone’s car, that $25,000 property damage limit may not cover it.
What Happens If You’re Hit by an Uninsured or Underinsured Driver
Texas has one of the highest rates of uninsured drivers in the country. According to the Insurance Research Council, approximately 14% of Texas motorists drive without any insurance at all. That’s roughly one in seven drivers on the road with you right now.
Even more drivers carry only the state minimum. When these drivers cause serious accidents, their coverage runs out quickly, leaving victims with few options.
This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes essential. These optional coverages protect you and your family when the other driver can’t cover your losses.
Uninsured Motorist Coverage (UM) pays your medical bills, lost wages, and other damages when the at-fault driver has no insurance at all. It also covers hit-and-run accidents where the driver flees.
Underinsured Motorist Coverage (UIM) kicks in when the at-fault driver’s insurance isn’t enough to cover your damages. If your injuries cost $80,000 and the other driver only has $30,000 in coverage, your UIM policy covers the gap.
Texas law requires insurance companies to offer you UM/UIM coverage, but you can reject it in writing. Many Texans decline this coverage to save money on premiums without understanding what they’re giving up.
How UM/UIM Coverage Works in a Real Case
One of our clients was rear-ended at a stoplight on I-35 in Dallas by a driver who was texting. Our client suffered herniated discs requiring two surgeries and months of physical therapy. Her total medical bills exceeded $210,000, and she couldn’t work for eight months.
The at-fault driver carried only $30,000 in liability coverage. His insurance paid that amount quickly, but it barely covered a fraction of her losses.
Fortunately, our client had $100,000 in underinsured motorist coverage on her own policy. After exhausting the at-fault driver’s limits, we filed a UIM claim with her insurance company. Through negotiation, we recovered an additional $95,000 from her own policy.
Without UIM coverage, she would have been left with over $180,000 in unpaid medical bills. The extra premium she paid for UIM coverage, roughly $150 per year, saved her from financial ruin.
What Is an Umbrella Policy and Why Should You Consider One?
An umbrella policy provides an extra layer of liability protection above your auto and homeowner’s insurance limits. It kicks in after your underlying policies max out.
Umbrella policies typically start at $1 million in coverage and can go much higher. The cost is surprisingly affordable. Most people pay between $150 and $300 per year for $1 million in umbrella coverage.
Consider this scenario. You cause an accident that seriously injures a family of four. Their combined medical bills, lost wages, and pain and suffering total $400,000. Your auto policy with 100/300/50 limits pays $300,000, but you’re still $100,000 short. Without an umbrella policy, that $100,000 comes out of your personal assets.
Umbrella policies also cover you in situations beyond car accidents. They protect against lawsuits from injuries on your property, defamation claims, and other liability exposures. For anyone with assets to protect, including a home, savings, or retirement accounts, umbrella coverage is one of the smartest insurance purchases available.
How Much Auto Insurance Coverage Do You Actually Need?
Insurance agents have a general rule: carry enough liability coverage to protect your net worth. If you have $200,000 in assets, you should have at least $200,000 in liability coverage. But that’s just the starting point.
Most financial advisors recommend at least 100/300/100 coverage for Texas drivers. This means $100,000 per person for bodily injury, $300,000 total per accident, and $100,000 for property damage. Combined with a $1 million umbrella policy, this provides solid protection for most families.
For UM/UIM coverage, match your liability limits. If you carry 100/300/100 liability, carry the same for uninsured and underinsured motorist protection. This ensures you’re protected whether you cause an accident or are the victim of one.
What to Do After a Car Accident in Texas
If you’ve been in an accident, especially one involving serious injuries, the steps you take immediately after can affect your ability to recover compensation.
At the scene: Call 911 and report the accident. Exchange insurance information with all drivers involved. Take photos of vehicle damage, the accident scene, and any visible injuries. Get contact information from witnesses.
Within 24-48 hours: Seek medical attention, even if you feel fine. Many injuries don’t show symptoms right away. Document everything in writing while your memory is fresh.
When dealing with insurance: Report the accident to your own insurance company promptly. Be careful what you say to the other driver’s insurance company. They may try to get you to admit fault or minimize your injuries. You are not required to give a recorded statement to the other driver’s insurer.
Before accepting any settlement: Talk to a personal injury attorney. Insurance companies often make quick lowball offers before you understand the full extent of your injuries. Once you sign a release, you can’t go back for more money.
What Happens After You Call Varghese Summersett
When you contact our firm after a car accident, here’s what to expect. First, you’ll speak with a member of our personal injury team who will ask about your accident and injuries. This initial call is free and confidential.
If we believe you have a case, we’ll schedule a consultation to review your medical records, insurance policies, and the facts of your accident. We handle personal injury cases on a contingency fee basis, meaning you pay nothing unless we recover compensation for you.
Our team will deal with the insurance companies so you can focus on recovery. We gather evidence, negotiate with adjusters, and prepare your case for trial if necessary. We’ve recovered millions for injured Texans, and we fight hard to maximize every client’s recovery.
Frequently Asked Questions About Texas Auto Insurance
Can I drive legally in Texas with just liability insurance?
Yes. Texas law only requires liability coverage at the 30/60/25 minimum. However, this protects other people, not you. If you’re injured by an uninsured driver and you don’t have UM coverage, you may have no way to recover your medical expenses.
Does my insurance cover me if I’m driving someone else’s car?
Generally, auto insurance follows the car first and the driver second. The car owner’s insurance is primary. Your insurance acts as secondary coverage if the owner’s policy isn’t enough or doesn’t apply.
What happens if I’m hit by an uninsured driver and I don’t have UM coverage?
You can sue the uninsured driver personally, but collecting is often difficult or impossible. Many uninsured drivers have few assets. Without UM coverage, you may be left paying your own medical bills even though the accident wasn’t your fault.
How long do I have to file an insurance claim after an accident in Texas?
You should report accidents to your insurance company as soon as possible, typically within a few days. For lawsuits against the at-fault driver, Texas has a two-year statute of limitations from the date of the accident. However, waiting can hurt your case as evidence disappears and memories fade.
Will my rates go up if I file a UM/UIM claim?
Texas Insurance Code § 1952.0545 prohibits insurers from raising your rates solely because you filed a UM/UIM claim for an accident that wasn’t your fault. If your rates increase, it should be based on other factors.
Get Help from an Experienced Texas Personal Injury Attorney
Understanding your insurance coverage is one thing. Knowing how to use it when you’re injured is another. Insurance companies, including your own, are businesses focused on minimizing payouts. Having an experienced attorney on your side levels the playing field.
At Varghese Summersett, our personal injury lawyers have decades of combined experience handling auto accident cases across Texas. We’ve recovered compensation for clients in Fort Worth, Dallas, Houston, and throughout the state. We understand the tactics insurance companies use to reduce or deny claims, and we know how to fight back.
If you’ve been injured in a car accident, don’t navigate the insurance process alone. Call us at (817) 203-2220 for a free consultation. We’ll review your case, explain your options, and help you understand what your claim is really worth. You pay nothing unless we recover compensation for you.
