Key Takeaways
- Texas requires minimum auto liability limits of 30/60/25 ($30,000 per person/$60,000 per accident bodily injury/$25,000 property damage)
- Texas is an "at-fault" state using modified comparative negligence with a 51% bar
- Personal Injury Protection (PIP) is required to be offered but can be rejected in writing
- TexasSure verifies auto insurance compliance through electronic verification
- Uninsured/Underinsured Motorist coverage is required to be offered
Texas Auto Insurance Requirements
Texas has specific auto insurance requirements that producers must understand.
Mandatory Coverage
Texas requires all registered vehicles to have liability insurance with minimum limits:
Minimum Liability Limits (30/60/25)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $30,000 |
| Bodily Injury per Accident | $60,000 |
| Property Damage | $25,000 |
Memory Tip: Remember "30/60/25" for Texas minimum limits. These are higher than many states.
Proof of Insurance
Texas drivers must carry proof of insurance:
- Physical insurance card, OR
- Electronic proof on smartphone
- TexasSure electronic verification
- Penalties for driving without insurance include fines and vehicle impoundment
Texas TexasSure Program
TexasSure is Texas's electronic insurance verification program:
How It Works
- Insurers report coverage electronically to TexasSure
- Links insurance records with vehicle registration
- Identifies uninsured vehicles automatically
- Allows targeted enforcement
Compliance
- Must maintain continuous coverage
- Lapses reported to Department of Public Safety
- Penalties for lapses: $100-350 fine per day
Texas's At-Fault System
Texas uses modified comparative negligence with a 51% bar:
How It Works
- Party at fault is responsible for damages
- Fault can be shared between parties
- Recovery reduced by percentage of fault
- 51% bar: If more than 50% at fault, NO recovery
Example
If Driver A is 40% at fault and Driver B is 60% at fault:
- Driver A can recover 60% of their damages
- Driver B recovers NOTHING (over 50% at fault)
Personal Injury Protection (PIP)
Texas requires insurers to offer PIP coverage:
PIP Requirements
| Feature | Details |
|---|---|
| Offered | Must be offered by insurer |
| Required | Can be rejected in writing |
| Minimum | $2,500 per person |
| Coverage | Medical expenses, lost income |
| No-Fault | Paid regardless of fault |
PIP Rejection
- Must reject in writing
- Rejection form required
- Applies to all insureds under policy
- Can add PIP later
Uninsured/Underinsured Motorist Coverage
Texas requires insurers to offer UM/UIM coverage:
UM/UIM Requirements
| Coverage | Requirement |
|---|---|
| Offered | Must offer equal to liability limits |
| Rejection | Can reject in writing |
| Stacking | Available in Texas |
| Trigger | Other driver at fault and uninsured/underinsured |
Rejection Requirements
- Must reject in writing to decline
- Written form preserved by insurer
- Applies per policy
Texas Auto Insurance Rating
Texas uses file and use for auto insurance rates:
Permitted Rating Factors
- Driving record
- Credit history (with limitations)
- Age and experience
- Annual mileage
- Vehicle type and safety features
Prohibited Discrimination
- Cannot discriminate based on race or religion
- Cannot discriminate based on national origin
- Territorial rating allowed but regulated
What are Texas's minimum auto liability insurance limits?
Under Texas's modified comparative negligence rule, what happens if a driver is 55% at fault?