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Most Texans would probably prefer to spend their paycheck on a local barbecue rather than their car insurance premium, but skipping coverage can be a costly mistake. Driving without insurance in the Lone Star State is illegal and can result in fines, license surcharges, and increased insurance premiums, leaving even less room for barbecue in your budget. Learn about the full range of Texas statutory auto insurance requirements and penalties for violations from Bankrate’s team of insurance experts.
Texas auto insurance laws
Texas auto insurance law states that all drivers must carry a minimum amount of auto insurance in order to legally operate a vehicle. Minimum limits follow the 30/60/25 rule described below.
- Personal injury liability $30,000 per person
- $60,000 personal injury liability per accident
- $25,000 property damage liability per incident
Car insurance companies are also legally required to offer uninsured or underinsured motorist coverage and personal injury protection (PIP) at the time of purchase. The policyholder can decline, but this decision must be expressed in writing.
Texas law allows drivers to opt out of the state’s minimum auto insurance policy by depositing $55,000 with the auditor or county judge. If you are at fault for the accident, these funds will be used to pay for the other party’s damages.
Penalties for driving without insurance in Texas
How much your ticket will cost for being uninsured in Texas depends on whether you have a history of this traffic violation. See the diagram below for more information.
| penalty type | first offense | subsequent crime |
|---|---|---|
| fine | up to $350 | up to $1,000 |
| Driving license surcharge | $250/year for 3 years | Additional $250 per year for 3 years |
But getting a ticket for no insurance in Texas is just the beginning of potential problems. In addition to fines and surcharges, repeat offenders may be subject to the following fines:
- Vehicle Impoundment and Related Fees
- Suspension of vehicle registration
- License suspension and reinstatement fees
- SR-22 requirements
- If you have no insurance due to an accident, you can be sentenced to up to 6 months in prison.
Additionally, each of these penalties comes with many hidden costs. For example, if your vehicle is impounded, daily storage fees will accumulate. You will also no longer have personal transportation, which can easily impact your ability to work and earn an income.
Cost of driving without insurance in Texas
Insurance costs can be high after an uninsured ticket in Texas. As of July 2024, the average cost of car insurance in Texas is $2,404 per year for full coverage and $680 per year for minimum coverage. However, with the loss of coverage, Texas drivers can expect their average annual percentage rate to increase. All else being equal, full coverage would cost $2,745 and minimal coverage would cost $768. If you are convicted of driving without insurance, most insurance companies will consider you a high-risk driver and will charge you higher rates as a result.
Auto insurance experts strongly believe that the legal and financial penalties for driving without insurance outweigh the downside of paying a monthly premium. To facilitate compliance with auto insurance laws, Texas uses an electronic database system called TexasSure. This system connects your insurance information to the DMV, and your auto insurance company will automatically notify the DMV if your policy lapses. Once a lapse is reported, the DMV will send you a letter within 10 days requesting proof of insurance. Consider this a kind reminder. However, if you ignore the notice, you will be subject to fines and other penalties.
I got into an accident in Texas without insurance.
In Texas, if you get into an accident without insurance, the financial damage can last a lifetime. If you are at fault in the accident and do not have insurance, the affected parties may pursue you in court. In that case, the court may liquidate your home, retirement savings, and other assets to cover the other party’s medical expenses, property damage, and legal costs.
It’s legal to drive in Texas as long as you have minimum auto insurance, but you’re only protected up to the aforementioned coverage limits of 30/60/25. If your liability for an accident exceeds these limits (which it easily does), you will have to pay the remaining money out of pocket. Because of this, Texas drivers may want to strongly consider a full coverage auto insurance policy with higher limits.
Another consequence of getting into an accident without insurance is that you will need to carry an SR-22 for insurance. This is basically a document that connects your insurance company with the DMV to prove that you have at least the required minimum level of liability coverage. In Texas, if you drive without insurance, you are required to wear an SR-22 for two years after receiving the ticket (not necessarily causing an accident). Once the coverage period expires, your license will typically be suspended and you will be subject to a $100 license reinstatement fee.
