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Most Texans would probably prefer spending their paycheck on some local barbecue rather than car insurance premiums, but skipping coverage could prove to be a costly mistake. Driving without insurance in the Lone Star State is illegal and can result in fines, license surcharges and increased premiums — leaving even less room for barbecue in your budget. Learn from Bankrate’s team of insurance experts about Texas’s legal car insurance requirements and the full scope of penalties for non-compliance.
Texas car insurance laws
Texas car insurance laws state that every driver must carry a minimum amount of car insurance to operate a vehicle legally. The minimum limits follow a 30/60/25 rule, which is described below:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Car insurance providers are also legally obligated to offer uninsured and underinsured motorist coverage and personal injury protection (PIP) at the point of purchase. The policyholder can decline, but this decision must be stated in writing.
Texas law does allow drivers to opt out of carrying state minimum car insurance by depositing $55,000 with the comptroller or county judge. In the event you are at fault in an accident, these funds will be deployed to pay towards the other party’s damages.
Penalties for driving without insurance in Texas
How much a ticket will cost for no insurance in Texas depends on whether or not you have a history of this traffic offense. See the chart below for details:
| Penalty type | First offense | Subsequent offenses |
|---|---|---|
| Fines | Up to $350 | Up to $1,000 |
| Driver’s license surcharge | $250 a year for three years | Additional $250 a year for three years |
But a ticket for no insurance in Texas is only the beginning of your potential problems. In addition to fines and surcharges, repeat offenders could expect:
- Vehicle impoundment and associated fees
- Vehicle registration suspension
- License suspension and reinstatement fee
- SR-22 requirement
- Up to six months in jail if uninsured in an accident
In addition, there are many hidden costs in each one of these penalties. For example, if your vehicle is impounded, you’ll accumulate daily holding fees. You’ll also be without a personal mode of transportation, which can easily impact your ability to work and earn an income.
Cost of driving uninsured in Texas
Your insurance costs are likely to rise after a Texas no insurance ticket. The average cost of car insurance in Texas is $2,404 per year for a full coverage policy and $680 per year for a minimum coverage policy, as of July 2024. However, after a lapse in coverage, Texas drivers can expect their average annual rates to increase to $2,745 for full coverage and $768 for minimum coverage, all other things being equal. If you are convicted of driving without insurance, most providers will view you as a high-risk driver, and charge higher rates as a result.
Car insurance experts strongly believe the legal and financial penalties for driving without insurance outweigh the downside of a monthly premium payment. To encourage compliance with its car insurance laws, Texas uses an electronic database system called TexasSure. This system connects your insurance information to the DMV, and if your policy lapses, your car insurance company will automatically notify the DMV. Once the lapse is reported, the DMV will send you a letter requiring you to provide proof of insurance within 10 days — consider it a friendly reminder! However, fines and other penalties are on the table if you decide to ignore the reminder.
Getting into an accident without insurance in Texas
In Texas, the financial consequences of getting into an accident without insurance can follow you around for a lifetime. If you’re at fault and uninsured in an accident, the impacted parties can pursue you in a court of law. In that case, the courts could liquidate your home, retirement fund or other assets to cover the other party’s medical expenses, property damage, and court costs.
While having a minimum car insurance policy does make it legal for you to drive in Texas, it only protects you up to the 30/60/25 coverage limits mentioned earlier. If your liability in an accident exceeds these limits (which it easily could), the rest of the money must come out of pocket. For this reason, Texas drivers may want to strongly consider a full coverage car insurance policy with higher limits.
Another consequence of getting into an accident without insurance is being required to carry an SR-22 on your policy. It’s basically a document connecting your insurance provider with the DMV to certify that you are carrying at least the minimum amount of liability coverage required. In Texas, the SR-22 is required for two years after receiving a ticket for driving without insurance (does not necessarily have to involve an accident). Any lapse in coverage usually results in a suspended license and a $100 license reinstatement fee.
Frequently asked questions
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As a large state with many driving environments, Texas’s best car insurance companies will likely vary based on your location and preferences. For example, if you live on the Gulf Coast, you may want to seek a provider offering solid, full coverage policies to protect your vehicle against tropical storms and hurricanes. Or, if you live in a small rural town where car accidents are almost non-existent, you may be able to consider a provider that offers cheap premiums rather than robust coverage options. The best car insurance provider for one person may not be the best for another, especially in a state like Texas with vast geographical and metropolitan diversity. Try writing down what you are looking for in an auto policy before you start shopping, then request quotes from several insurance companies to see which suits your situation best.
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Insurance providers use a proprietary algorithm to generate a personalized quote for you and your circumstances. Some factors that can impact the cost of your insurance in Texas are credit history, location, driving record, age and vehicle type. Some of these are fixed (like age), but many of these are variable and can be tailored in a way that could qualify you for cheaper car insurance (e.g. downgrade vehicles, improve credit). But no matter your situation, shopping around with multiple companies is probably the most effective strategy for identifying the cheapest car insurance company in Texas for your situation.
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The average cost of car insurance in Texas is $2,404 per year for a full coverage policy and $680 per year for a minimum coverage policy, which is about on par with the national average. Most insurance professionals recommend you request free car insurance quotes when you renew your coverage — you never know what new car insurance discounts you might qualify for. Insurance providers typically reward you for safe driving, bundling and more. And, if your personal circumstances have changed, such as getting married or being convicted of a moving violation, there may be another insurance company that can offer you a better rate.
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A ticket for driving without insurance can cost up to $350 for first-time offenders. Subsequent infractions can be fined up to $1,000. However, a no insurance ticket in Texas is only the tip of the iceberg regarding financial penalties. You also may be liable to pay a $250 license surcharge per year for the next three years, a $100 fee to reinstate your license from suspension and likely more expensive insurance premiums. You will also likely be required to carry an SR-22. If you cause an accident without insurance, you will be financially responsible for any damage you cause out of pocket.
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