Texas Auto Insurance Requirements

Texas is one of the largest states in the United States, and is home to millions of registered automobiles. In addition, there are hundreds of thousands of motorcycles in the state. At any given time, there are millions of motor vehicles on the state’s roads and highways. Texas is also one of the leading states with highest numbers of automobile accidents. The state government has regulated the issuance of driver licenses, automobile registration, and traffic through various laws.

The state of Texas requires that an automobile must carry a proof of financial responsibility in order to be registered in the state. Some of the examples of financial responsibility are:

  • A deposit of $55,000 in cash or cashier's check, made to the county judge.
  • A deposit of $55,000 in cash or securities, made to the county comptroller.
  • A surety bond filed with the county clerk. 

However, buying liability insurance remains the most convenient way of establishing that an automobile meets Texas’ financial responsibility requirements. The minimum requirements for liability insurance policy are:

  • $25,000 property damage coverage per accident
  • $30,000 bodily injury coverage for one person per accident
  • $60,000 bodily injury coverage total per accident 

Without meeting financial responsibility or insurance requirements, an automobile or motorcycle will not be registered in Texas. This goes for new and used cars bought from a dealer in Texas and those out-of-state cars which need to be registered in Texas.

Drivers and owners can purchase an insurance policy from a wide variety of insurance companies. Due to severe competition between insurance companies, their clients are the ultimate beneficiaries as they get the best insurance rates. Many insurance companies have their own websites where they provide insurance quotes for free. Insurance policies can also be bought online now. In short, insurance coverage is available 24 hours a day, 7 days a week, and 365 days a year. There is really no excuse for a motorist or motorcyclist not to have his/her car or motorcycle insured in Texas.

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