Texas Car Insurance: Liability Coverage & Requirements

Texas drivers must carry auto insurance that meets state minimum requirements before operating a vehicle on public roadways. Texas law requires drivers to carry liability coverage of at least $30,000 per injured person, $60,000 per accident, and $25,000 for property damage.

Texas liability insurance coverage protects you financially when you cause an accident that injures another person or damages their property. However, many drivers remain confused about what their policies actually cover and whether they carry adequate protection for their needs.

Our personal injury lawyers at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner help accident victims navigate complex insurance claims and pursue full compensation for their injuries.

What Is Texas Liability Insurance?

Texas liability insurance protects policyholders from claims arising from collisions they cause that result in harm to others. Unlike other forms of coverage that pay benefits directly to you, liability insurance in Texas pays compensation to third parties who suffer losses due to your negligent actions. Your insurance company provides payment to the injured person or property owner rather than to you as the policyholder.

When another driver files a claim against your policy, your insurance carrier assumes the obligation to investigate the claim and defend you against allegations. The insurer handles negotiations with the claimant and pays settlements or judgments up to your policy limits.

However, liability policies typically exclude coverage for intentional acts of harm and damages arising from contractual disputes. Your insurer generally retains the duty and authority to manage your defense throughout the claims process.

Minimum Liability Insurance Requirements in Texas

Texas Transportation Code § 601.072 establishes the minimum liability insurance requirements in Texas that all drivers must maintain. The state requires drivers to carry 30/60/25 coverage, which represents the minimum dollar amounts your policy must provide for different types of claims:

• $30,000 for bodily injury per person in an accident;
• $60,000 for total bodily injury when multiple people suffer harm in a single accident, and
• $25,000 for property damage per accident.

These state minimums often fall short of covering the actual costs of serious accidents. Medical bills for significant injuries frequently exceed $30,000, and modern vehicles can cost far more than $25,000 to repair or replace. Many Texas drivers choose higher liability coverage to provide greater financial protection against lawsuits and substantial claims that exceed minimum policy limits.

What Does Texas Liability Insurance Cover?

What does Texas liability insurance cover? It depends on whether the claim involves bodily injury or property damage, as your policy contains separate limits for each category:

• Medical expenses incurred by people you injure in an accident;
• Lost wages when injured parties cannot work during their recovery;
• Pain and suffering damages claimed by accident victims;
• Property damage to vehicles you strike in a collision;
• Damage to structures, fences, or other property you hit, and
• Legal defense costs when someone sues you for accident-related injuries.

Your liability coverage does not pay for your own injuries or damage to your own vehicle, regardless of fault. Liability policies also generally exclude intentional acts and may limit or exclude coverage in certain situations, depending on the terms of your policy.

Optional Auto Insurance Coverage in Texas

Texas law requires only liability coverage, but insurance companies offer numerous optional coverages that provide broader protection. Drivers often consider these additional options based on their financial situation and risk tolerance:

• Collision: Pays for damage to your vehicle when you hit another car or object, regardless of fault;
• Comprehensive: Covers non-collision damage from theft, vandalism, weather events, and animal strikes;
• Uninsured/underinsured (UM/UIM): Protects you when at-fault drivers lack adequate insurance to cover your losses;
• Personal injury protection (PIP): Pays your medical expenses and lost wages regardless of who caused the accident;
• Medical payments (MedPay): Covers medical bills for you and your passengers after any accident;
• Towing and labor: Reimburses costs for roadside assistance and towing services, and
• Rental reimbursement: Pays for a rental vehicle while your car is being repaired after a covered accident.

Many drivers discover gaps in their coverage only after an accident leaves them facing unexpected expenses. At Abraham Watkins, we review your policy to uncover all potential sources of compensation following an accident.

Penalties for Driving Uninsured in Texas

Texas aggressively enforces its mandatory insurance laws and imposes significant penalties on drivers who fail to maintain required coverage. First-time offenders face fines of $175 to $350, while repeat offenders face fines of up to $1,000.

The state may also suspend your driver’s license and vehicle registration until you provide proof of insurance. Courts can require you to file an SR-22 certificate, which serves as proof of financial responsibility, demonstrating continuous coverage for two years following a conviction.

Insurance companies recognize when claimants have legal representation and often offer higher settlements as a result. You deserve an advocate who understands insurance tactics and fights aggressively for your right to full compensation.

Have You Been Injured? Contact Abraham Watkins Now

If you suffered injuries in a motor vehicle collision caused by another driver’s negligence, our team is ready to fight for the compensation you need and deserve. Abraham Watkins has accumulated over 75 years of collective experience and has recovered billions of dollars for our clients.

We represent cases on a contingency-fee basis because we believe everyone deserves access to high-quality legal representation without an upfront cost. Call (713) 222-7211 or reach out online to schedule your free consultation with a reputable car accident attorney in Texas today.

Abraham, Watkins, Nichols, Agosto, Aziz & Stogner
800 Commerce St, Houston, TX 77002, United States
(713) 222-7211