Auto insurance in Texas is a mandatory contract that provides financial protection against car-related losses, primarily requiring liability coverage for bodily injuries and property damage caused by at-fault drivers. Texas is an "at-fault" state, meaning the responsible driver's insurance covers accident costs. The legal minimum, known as 30/60/25, covers $30,000 for injuries per person, $60,000 for total injuries per accident, and $25,000 for property damage. 

Texas Department of Insurance 

Core Components of Texas Auto Insurance

• Liability Coverage (Required): Pays for damages and injuries you cause to others.
• Minimum Limits (30/60/25): Texas law dictates that drivers must have at least $30,000/$60,000/$25,000 in liability insurance to prove financial responsibility.
• At-Fault System: The driver responsible for the accident is liable for damages and injuries. 

Texas Department of Insurance 

Common Additional Coverage Options

• Collision Coverage: Pays for repairs to your car regardless of who caused the accident.
• Comprehensive Coverage: Covers damage from non-collision events like theft, fire, hail, or vandalism.
• Personal Injury Protection (PIP): Covers medical bills, lost wages, and caregiver costs for you and your passengers, regardless of fault.
• Uninsured/Underinsured Motorist (UM/UIM): Pays for injuries or damage if the other driver has no insurance or insufficient insurance. 

Key Requirements & Notes

• Lender Requirements: If you are leasing or financing a car, lenders usually require both collision and comprehensive coverage.
• Proof of Insurance: You must be able to show proof of insurance upon request by law enforcement.
• Uninsured Motorist (UM/UIM): While not legally required, insurers must offer it, and you must reject it in writing if you do not want it