It forms the foundation that courts, lenders, and victims rely on when expenses rise after a collision. This guide breaks down what those numbers mean, what liability insurance covers and does not, and how to pick limits that fit real-world risks from bumper taps to multi-car collisions.
The Texas Minimums at a Glance
Every Texas driver must carry at least 30/60/25 in liability coverage. This means $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage per accident. These figures are the minimum required by law, but not a cap on what a driver could owe if losses surpass the policy limits.
Because costs from a serious crash often exceed those numbers, many Texans buy higher limits to protect against personal financial exposure. The state minimum does not cover damage to the policyholder’s own car or injuries. For this reason, it’s only one piece of a broader insurance strategy.
What Liability Pays For
Liability has two sections that respond when the policyholder is at fault.
- Bodily Injury Liability covers medical expenses, lost wages, pain and suffering, and funeral costs for other people, up to the per-person and per-accident limits.
- Property Damage Liability covers repairs or replacement of another person’s vehicle and damaged property, such as fences, light poles, or buildings. The minimum level pays up to $25,000 per accident.
The Texas Department of Insurance confirms that these minimums cover $30,000 per person and $60,000 per accident for bodily injury, along with $25,000 per accident for property damage. Any amount above those limits must be paid out of pocket.
What Liability Does Not Cover
Liability will not fix the policyholder’s car, cover the policyholder’s injuries, pay for towing or rental, or handle storm, theft, or animal damage to the policyholder’s vehicle. All of those require optional coverages like collision, comprehensive, medical payments, or personal injury protection.
It also will not fill the gap if the policyholder is hit by an uninsured driver unless the policy includes uninsured or underinsured motorist coverage. It’ll pay for the policyholder’s injuries and car damage when the at-fault party lacks enough insurance.
Attorneys and consumer guides in Texas routinely point out that minimum liability protects others, not the policyholder’s own ride or medical costs.
PIP and UM Are Offered by Default in Texas
Texas requires insurers to offer at least $2,500 in personal injury protection and to offer uninsured/underinsured motorist coverage to anyone buying liability. Drivers can reject them in writing if they do not want them.
PIP pays medical costs and can cover some lost wages and replacement services for the policyholder and passengers, no matter who caused the crash.
UM and UIM cover injuries and sometimes vehicle damage when an at-fault driver carries no insurance or too little. It’s a meaningful risk on Texas roads according to legal sources that track uninsured exposure.
Why 30 60 25 Is Often Too Small
Modern vehicles and medical care are expensive, and a single crash with multiple injuries can cost $60,000 quickly. It leaves the at-fault driver liable for the difference beyond the policy. Property damage minimums of $25,000 are often not enough to cover a late model luxury SUV or a multi-car chain reaction. This gap can create potential personal liability for any shortfall.
Consumer and legal guides in Texas recommend higher limits and suggest adding collision and comprehensive coverage. This means the policyholder’s own car is not left out of the payout picture after an at-fault crash or a non-crash loss.
Cost Context for Minimum Coverage
Market surveys place the average annual cost of a minimum liability policy in Texas near the mid-five hundreds, though actual quotes vary by driver profile, location, and company appetite. One 2025 analysis estimated $572 per year on average for minimum limits, with the least expensive carriers quoting well below that for clean drivers.
Others run higher based on underwriting factors. These figures highlight why shopping across insurers matters, as the spread by company for a similar profile can be wide in Texas markets.
Penalties for Driving Without Insurance
Texas treats driving without liability coverage as a violation that can bring fines, surcharges, and possible license and registration suspensions. There’s also an SR-22 filing requirement to regain driving privileges after repeat offenses or judgments.
Legal updates cite fine ranges from about $175 to $350 for a first offense and higher for subsequent offenses, along with possible impound fees and a multi-year surcharge under enforcement programs. The safer play is to keep proof of insurance ready and active. Law enforcement and courts look for that 30 60 25 baseline after collisions and traffic stops.
SR 22 and Proof of Financial Responsibility
An SR 22 is a certificate insurers file with the Department of Public Safety to verify ongoing liability coverage for drivers with certain suspensions, convictions, or judgments, and lapses trigger automatic notice to the state.
Texas DPS notes that SR 22 requirements typically run two years from the qualifying conviction or judgment date. An insurance card by itself does not satisfy the filing requirement for reinstatement.
Liability and Lawsuits
If losses exceed the policy, injured parties may pursue the at-fault driver for the remainder through litigation, attaching wages or assets if judgments are granted and unpaid. This is the practical reason drivers and consumer advocates point past the legal minimums toward higher liability limits that match local risk and household assets at stake.
Liability also pays defense costs up to policy terms, which can be a significant benefit during a disputed fault scenario or an injury claim with multiple parties.
Buying Tips for Texans
- Match limits to realistic loss scenarios on local roads and to any assets that could be exposed in a judgment, not just to the legal minimums.
- Keep PIP unless a medical plan and savings make it redundant for the household. Keep UM to cushion against an at-fault driver who cannot pay, a risk noted by Texas legal guides.
- Compare quotes across several companies since minimum and higher limit pricing can swing widely by insurer and driver history in Texas markets.
Special Notes for Teens, High Risk, and Non-Owners
New drivers and those with violations may face higher premiums and possible SR 22 filing after certain convictions.
It makes continuous coverage compliance vital through the DPS monitoring period. Non-owners who must file an SR-22 can buy a non-owner policy that satisfies the state and covers permissive use of borrowed cars. Insurers report any lapse to DPS during the required term.
For high-value commutes or frequent interstate travel, higher property damage and bodily injury limits are prudent to avoid exposure that can reach beyond Texas minimums in multi-party losses.
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