New Insurance Coverage Requirements

(Update: Coverage requirements still in effect as of 2015.)

As of January 1, 2011, the minimum amount of automobile insurance coverage Texans must obtain went up. 

Drivers must now carry liability insurance limits of at least $30,000 for each injured person, $60,000 per accident and $25,000 for property damage. 

These figures are commonly referred to in insurance circles as 30/60/25 coverage.  The prior law required that a driver must have minimum liability limits of $25,000 for each injured person, $50,000 per accident and $25,000 for property damage per accident, or 25/50/25 coverage.

The increase has occurred as a result of legislation passed in 2007 and was made necessary because, according to the Texas Department of Insurance, liability limits no longer pay for all expenses after an accident. Liability automobile insurance is supposed to cover persons who are not at fault in an accident by having the at-fault driver’s insurance pay to repair or replace the vehicle of the innocent driver, as well as cover medical expenses, lost wages or other injury claims for each injured person in the wreck.

According to industry data provided to the Department of Insurance, about 50% percent of vehicles in Texas (or approximately 7.5 million) are minimally insured with liability coverage, and about 1 in 5 vehicles, or 20%, are uninsured. 

The Ashmore Law Firm recommends that you review your automobile insurance policy to insure that you have adequate coverage in the event of a wreck, including uninsured/underinsured motorist protection (UM/UIM) and personal injury protection (PIP) coverage. 

If you have any questions about car insurance requirements in Texas, please contact us.


Gary Ashmore
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Probate, Estate Planning, and Family Law Attorney in Dallas, Texas
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