What You Need to Know About Texas Liability Auto Insurance

One of the best parts of driving is having the freedom to travel where you need in a convenient way. Yet, with that freedom comes responsibility. Liability coverage is the minimum state-required auto insurance. However, liability coverage in Texas is not just a state mandate; it can help in the event of unexpected situations by covering damages you caused in an at-fault accident or costs involved if you are sued over an accident.  

Let's break down the basics of Texas liability auto insurance, including requirements, and what it may and may not cover.  

What is liability auto insurance in Texas? 

Texas liability insurance covers the cost if you’re found at fault in a covered accident. It is the foundation of an auto policy and is required by law. While liability doesn’t pay for damage to your own car or injuries you sustain in an accident you cause, it can help cover expenses for other people’s injuries or property damage. 

Liability coverage includes two main parts: 

• Bodily injury liability: Can cover medical bills and lost wages if you injure someone in an accident 
• Property damage liability: Helps pay for repairs or replacement if you damage another person’s car or property 

Liability coverage can step in when you’re at fault and someone else suffers damage or injury. For example, if you rear-end another car or back into someone’s property like a fence or mailbox.

Texas minimum liability requirements  

In Texas, the minimum car insurance requirements are: 

• $30,000 — bodily injury per person 
• $60,000 — bodily injury per accident 
• $25,000 — property damage per accident 

Here’s what the minimums mean in practice: if you cause an accident, your insurance may pay up to $30,000 for each injured person, with a total limit of $60,000 per accident, and up to $25,000 for damage to someone else’s property. Texas uses an electronic insurance verification system called TexasSure to verify if drivers have the required insurance.  

The minimums are the liability coverage limits required by law, not recommended amounts. Medical bills, lost wages, and repair costs can add up fast, therefore many drivers often choose higher auto insurance coverage to avoid additional out-of-pocket costs. 

How liability insurance works in case of a crash 

If you haven’t filed a liability claim before, you might think the process is lengthy and complicated. However, it can be straightforward: 

1. You cause an accident: For example, imagine a fender bender during rush hour on Dallas’ I-35. 
2. Your liability coverage steps in: You inform your insurance about the accident and provide necessary information. Your insurance then reviews the claim and if the accident is covered, it helps pay for the other person’s expenses, up to your policy limits. 
3. What can be covered:  
   • The other party’s medical bills if someone is hurt. 
   • Vehicle repairs for the other car or property damage in the accident. For example, if you accidentally rear-end a car in Houston traffic, your liability coverage can cover the other driver’s repair costs and medical treatment.  

Average cost of liability insurance in Texas 

Did you know that your auto insurance rate can fluctuate based on personal and regional conditions? So, the average costs of insurance in Texas can vary. Rates can depend on factors such as: 

• Driving record (includes prior accidents, tickets, violations, insurance claims, etc.) 
• Age (which typically indicates driving experience) 
• Vehicle (make, model, age, and other essential information) 
• Insurance coverage/limits (the type of coverage and limits you choose) 

Other factors, like local accident rates, heavy traffic, or severe weather, may also affect your insurance rates. Your actual cost may differ from the Texas average. Speak with an agent to get a free quote and find coverage tailored to your situation.  

Call to Get a Quote

Why minimum limits may not be enough 

While liability insurance is important, as it is a legal requirement in Texas, its function is to help third parties, paying for damages or injuries you cause to someone else in a covered accident. This means that liability coverage does not cover your own losses, including: 

• Repairs to your car after a crash: Liability coverage won’t pay for your vehicle damage in a covered accident. Collision coverage can pay for your vehicle expenses in a covered accident, which could be particularly helpful for newer cars where repairs are more expensive.  
• Damage from theft, vandalism, or weather: Liability coverage doesn’t cover events like storms, hail, or theft. Comprehensive coverage, on the other hand, can.  
• Medical expenses for you or your passengers: Liability coverage only covers injuries to other drivers. However, medical payments coverage (MedPay) can cover your medical expenses.  
• Uninsured or underinsured drivers: Liability coverage won’t cover accidents caused by drivers without insurance or with insufficient coverage, but uninsured/underinsured motorist coverage can.  

Coverages not required by law are optional but may be recommended, depending upon your unique situation. You can also opt for higher coverage limits than the Texas minimum requirements, such as $100,000/$300,000/$100,000. 

How discounts can reduce your rate 

At A Abana, we work with trusted Texas insurance carriers that offer flexible coverage options and discounts that can help keep your monthly costs lower. A few discount options you may qualify for are: 

• Safe-driver discounts: You can receive discounts for maintaining a clean driving record. 
• Multi-policy or multi-vehicle discounts: You could save by combining multiple insurance policies or adding more than one vehicle to a policy.  
• Defensive driving certificates: You can receive savings options for completing approved defensive driving courses.  
• Good student / young driver programs: There are options for lower rates for students with good grades or young drivers who meet certain criteria.  

Discounts are one way you could reduce what you pay for auto insurance in Texas. Speak with an A Abana agent to learn more.  

Call to Get a Quote

What happens if you don’t have liability auto insurance 

Law enforcement can use TexasSure to instantly check if you’re properly insured. Driving without insurance can lead to serious consequences, including:  

• Fines and fees: Up to $350 fees for a first offense, plus additional court costs 
• License and registration suspension: Your driver’s license and vehicle registration could be suspended until you provide proof of insurance.  
• Higher insurance rates: Being caught uninsured can lead to higher premiums in the future. 
• SR-22 requirement: You may be required to file an SR-22, a certificate of financial responsibility, to prove you have the state-required liability insurance.  

Maintaining proper insurance not only helps you comply with state law, but it can also help your finances and driving record. Get insured today to avoid costly penalties. 

Additional FAQs 

What counts as liability insurance in Texas? 

Liability insurance is the minimum legally required insurance in Texas, which pays for other people’s medical bills and property damage if you’re at fault in an accident.  

Is liability insurance required in Texas? 

Yes. Texas law requires minimum liability coverage with 30/60/25 limits to drive legally.  

How much is Texas liability insurance? 

Rates vary depending on driver characteristics and other factors. Getting a personalized quote is a reliable way to see what you’d pay.  

Does liability cover my car? 

No. Liability coverage can only cover injuries to other people and their property. To cover your own vehicle, you’ll need collision or comprehensive coverage.  

What’s the difference between liability and what’s typically considered “full coverage”? 

“Full coverage” typically includes liability coverage plus collision and comprehensive coverage. Speak with an agent to explore combinations tailored to your needs and budget. 

Start your coverage today 

At A Abana, we’ve been helping Texas drivers from Dallas to Houston, San Antonio, and beyond. Liability coverage, while legally required in Texas, is just the start, and you can explore more options. Get fast, affordable quotes through our insurers either online, in-office, or by calling 214-764-8868 to speak with a friendly and knowledgeable agent.  

Call to Get a Quote

Disclaimer:    
This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or in all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.