Liability
Texas Auto Insurance
Practical guidance for Texas drivers on what the state requires, which coverages protect you beyond the minimum, and what drives the cost.
Short answer: Texas requires liability coverage of at least 30/60/25: $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. Texas auto policies include personal injury protection (PIP) unless you reject it in writing, and insurers must offer uninsured/underinsured motorist coverage, which can also be rejected in writing. Liability pays for injuries and damage you cause to others, not damage to your own vehicle. Collision and comprehensive cover different types of damage to your car, and lenders generally require both when a vehicle is financed.
What Texas Auto Insurance Actually Does
An auto policy is a set of coverages that each pay for something different: injuries and damage you cause to others, damage to your own car, medical bills for you and your passengers, and losses caused by drivers without enough insurance. Texas requires only liability. Most of the important decisions are in the rest.
Auto Insurance Coverage Types Explained
Each coverage has its own limit or deductible, and most can be adjusted.
Liability Coverage
Pays for injuries and property damage you cause to others in an accident. Texas requires at least 30/60/25, and higher limits protect more of your income and assets if a serious accident costs more than that.
Collision Coverage
Pays to repair or replace your car after a collision with another vehicle or object. Lenders generally require it on a financed car.
Comprehensive Coverage
Pays when your car is stolen or damaged by something other than a collision, such as hail, flood, fire, or vandalism. See comprehensive vs. collision.
Uninsured / Underinsured Motorist
Pays for your injuries and car damage when the at-fault driver has no insurance or not enough, and in hit-and-run accidents. Insurers must offer it, and turning it down takes a written rejection. More in uninsured motorist coverage in Texas, or see the Texas Department of Insurance’s UM guide.
Personal Injury Protection (PIP)
Pays medical bills, part of lost income, and some other expenses for you and your passengers after an accident, regardless of who was at fault.
Medical Payments (MedPay)
Pays medical bills for you and your passengers after an accident, and can also apply if you’re hurt as a pedestrian or cyclist. It doesn’t include PIP’s lost-income benefit.
Rental Reimbursement
Pays for a rental car while yours is being repaired after a covered loss, or if it’s stolen. Some policies also pay for taxis or ride-hailing.
Roadside Assistance
Covers services such as towing, jump-starts, flat tires, lockouts, and fuel delivery, depending on the policy. Compare it with any roadside membership you already have.
What Makes Texas Auto Insurance Different
A few things about Texas law and Texas driving shape which coverages matter most.
State Minimums Are a Floor
Texas’s 30/60/25 minimums took effect in 2011. They keep you legal, but a serious accident can cost more than those limits, and the driver at fault can be held responsible for the rest. The Texas minimum liability guide explains the limits, the penalties, and the trade-offs.
Hail, Flood, and Comprehensive
Hail and flood damage to your car falls under comprehensive, not collision, and your comprehensive deductible applies. Texas storms can damage many vehicles at once, so it’s worth knowing that deductible before storm season. More on hail damage and auto insurance.
Uninsured and Underinsured Drivers
If the driver who hits you has no insurance or too little, UM/UIM is what pays you. Its deductible is $250, usually lower than a collision deductible. Rejecting it is a decision worth making knowingly.
PIP Is Included Unless You Reject It
Every Texas auto policy includes personal injury protection unless you reject it in writing, and a rejection can carry over at renewal. PIP helps with costs health insurance may not cover, such as lost income, so check what’s on your current policy.
Teen and Household Drivers
Tell your insurer when someone in your household turns 16 or starts driving. If a teen is the main driver of a car, the company rates the teen on that car. Otherwise, it uses the household car with the highest rate. A driver who isn’t disclosed can lead to a back-billed premium or a denied claim. See teen drivers in Texas and does car insurance follow the car or the driver?
Rideshare and Delivery Driving
Personal auto policies may exclude or limit coverage while you’re driving for a rideshare or delivery app. For rideshare, Texas law sets different coverage requirements for when you’re logged on and waiting and for when a ride is in progress, so coverage can change between waiting, an accepted ride, and a passenger in the car. If a vehicle is used for a business, see Texas business insurance.
How Much Coverage Do You Need?
There’s no single right answer. The right liability limits depend on your income, assets, household, budget, and how much risk you’re comfortable keeping. Luke uses 100/300/100 as a practical comparison point against the 30/60/25 minimum: $100,000 per person, $300,000 per accident, and $100,000 for property damage. It’s a reference, not a recommendation for everyone. An umbrella policy can add coverage above your auto limits.
Full coverage vs. liability only. “Full coverage” isn’t a legal term. It usually means liability plus collision and comprehensive. Liability only can make sense for an older car you could afford to replace, but it leaves your own vehicle uncovered. See full coverage vs. liability in Texas.
Deductibles. A higher collision or comprehensive deductible lowers the premium, so choose one you could pay right after a claim. More in auto insurance deductibles in Texas.
What Affects Auto Insurance Cost in Texas?
Premiums vary widely between drivers and between companies, so an average won’t tell you much about your own price. The Texas Department of Insurance’s auto insurance guide lists what most companies consider:
- your driving record and claims history
- where you keep the car (rates are usually higher in cities)
- the car itself, including what it costs to repair
- how you use it, such as commuting or business use
- your credit-based insurance score, where the company uses one
Your own choices matter too: liability limits, deductibles, and which optional coverages you add. For ways to bring the premium down, see how to lower car insurance costs in Texas and car insurance discounts in Texas. Dallas-area drivers can also read why car insurance is so expensive in Dallas.
Common Auto Insurance Gaps
A common pattern is shopping almost entirely on the monthly premium while leaving liability at the state minimum, or rejecting uninsured motorist coverage, without a clear picture of the exposure that’s left. Most of these gaps are easy to fix.
Liability at the State Minimum
The minimums keep you legal, but a serious accident can cost more, and the difference is yours.
Uninsured Motorist Coverage Rejected
It’s worth confirming whether UM/UIM is on your policy or was rejected when the policy was first written.
Comprehensive Dropped Without Weighing It
Dropping comprehensive saves premium, but in Texas it’s the coverage that pays for hail, flood, and theft.
No Gap Coverage on a Financed Car
A totaled car is settled at market value, which can be less than the loan balance. Gap coverage pays the difference.
A Deductible You Can’t Comfortably Pay
A high deductible lowers the premium, but it only helps if you can pay it after a claim.
Rental Reimbursement Left Off
Without it, you pay for a rental yourself while your car is in the shop.
Our Auto Insurance Review Process
We start with the drivers and vehicles in your household and how they’re used. Then we look at what matters most: liability limits, whether UM/UIM is included or rejected, your comprehensive and collision deductibles, and whether every household driver and vehicle is listed correctly.
Understand Your Situation
Who drives, which vehicles, how they’re used, and what you’d stand to lose in a serious accident.
Review Your Current Policy
Limits, deductibles, and any coverages that were rejected or left off.
Identify Gaps and Risks
Including Texas-specific issues such as minimum limits, UM/UIM, and hail exposure.
Compare Options Across Carriers
Luke can compare coverage options available through multiple insurance carriers and market partners, depending on the type of coverage and underwriting eligibility.
Revisit When Life Changes
Auto coverage is worth reviewing at renewal and whenever something meaningful changes, such as adding a driver, buying or replacing a vehicle, moving, changing how a vehicle is used, or significantly changing your financial situation.
Luke Faulkner
Gilded Oak was created to provide clear, practical insurance guidance for Texas families and business owners. The focus is simple: help people make informed coverage decisions without the pressure and confusion that often accompany insurance shopping.
Licensed Texas Insurance Agent | Gilded Oak Insurance | TX License #1853547Not Sure How Your Current Coverage Compares?
If you’re reviewing your current policy or shopping around, we can compare the liability limits, deductibles, and major coverage differences with you.
Get an Auto Insurance QuoteFrequently Asked Questions
Liability coverage of at least 30/60/25: $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. Insurers must also include PIP and offer uninsured/underinsured motorist coverage, and you can reject either one in writing. The Texas minimum liability guide covers proof of insurance, penalties, and whether the minimum is enough.
Often, yes. Comprehensive pays for hail, flood, fire, theft, and other damage that isn’t from a collision, and lenders generally require it on a financed car. On an older, lower-value car, compare the yearly cost and the deductible with what the car is worth before deciding.
If you have uninsured/underinsured motorist coverage, it pays for your injuries and car damage, with a $250 deductible. Without it, you’d rely on collision (with its own deductible), PIP or MedPay, your health insurance, or a lawsuit against the other driver, which may not recover much.
Often, yes, if you have income or assets to protect. A serious accident can cost more than 30/60/25, and the at-fault driver can be held responsible for the difference. The right limits depend on your situation. Luke uses 100/300/100 as a practical comparison point, and an umbrella policy can add more.
Not always. Personal policies may exclude or limit coverage while you’re driving for a rideshare or delivery app. For rideshare, Texas law sets separate coverage requirements for when you’re logged on and waiting and for when a ride is in progress. Check your policy and the app’s coverage terms, and ask your insurer whether an endorsement is available.
Yes. Luke can compare coverage options available through multiple insurance carriers and market partners, depending on the type of coverage and underwriting eligibility. The goal is coverage that fits how you drive, not just the lowest premium.
Need a Second Set of Eyes?
Let’s connect and see if your current coverage and pricing still make sense.
Prefer to talk first?
Call Luke at (214) 647-3547 or text (469) 584-5093.
Related Insurance Resources
A few more guides as you evaluate your coverage.
Texas Minimum Liability Explained
What 30/60/25 covers, and what it doesn’t.
Read the guide → Full CoverageFull Coverage vs. Liability
What each option pays for, and when liability only can make sense.
Learn more → Uninsured DriversUninsured Motorist Coverage
How UM/UIM protects you when the other driver can’t pay.
Learn more → DeductiblesAuto Insurance Deductibles
How deductibles work and how to choose one.
Learn more → Teen DriversTeen Drivers in Texas
Licensing rules and insurance for families with a new driver.
Learn more → Drivers and VehiclesDoes Coverage Follow the Car or the Driver?
Who’s covered when someone else drives your car.
Learn more →Ready to Compare Your Auto Insurance Options?
If you’d like a second set of eyes on your current policy, or want to see what else is available, we’re happy to walk through it with you.
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