Texas insurance for new drivers

Coverage requirements

• Bodily injury liability: at least $30,000 for injury or death of one person in one crash.

  Applies to: Ordinary drivers using a liability insurance policy to establish financial responsibility. Effective 2011-01-01.

  Source 1

• Bodily injury liability: at least $60,000 total for injury or death of two or more people in one crash, subject to the one person limit.

  Applies to: Ordinary drivers using a liability insurance policy to establish financial responsibility. Effective 2011-01-01.

  Source 1

• Property damage liability: at least $25,000 for other people's property in one crash.

  Applies to: Ordinary drivers using a liability insurance policy to establish financial responsibility. Effective 2011-01-01.

  Source 1

• Texas also allows qualifying surety bonds, deposits and self insurance under the listed statutory procedures.

  Applies to: Alternatives to a liability policy under section 601.051; qualification is required.

  Source 2

• An auto liability policy includes PIP unless a named insured rejects it in writing. The required offer is $2,500 in benefits per covered person.

  Applies to: Policies covered by sections 1952.152 and 1952.153; rejection and renewal rules apply.

  Source 3

• An auto liability policy includes uninsured and underinsured motorist coverage unless a named insured rejects it in writing.

  Applies to: Policies covered by section 1952.101; rejection and renewal rules apply.

  Source 4

What can happen when you drive uninsured

• The usual first conviction fine is $175 to $350. A later conviction carries $350 to $1,000. A court may reduce a first fine below $175 if the person cannot afford it.

  Applies to: Operating without required financial responsibility under section 601.191.

  Source 5

• After a reported prior conviction and a later conviction, the license is suspended unless the driver files and maintains financial responsibility evidence until the second anniversary of the later conviction.

  Applies to: Repeat convictions under section 601.231, subject to its compliance and exemption provisions.

  Source 6

• DPS requires an SR-22 for specified crash suspensions, repeat no insurance convictions and civil judgments. For a qualifying conviction, maintain it for two years from conviction; for a crash judgment, two years from the judgment. Follow the actual suspension notice for a crash case.

  Applies to: These listed triggers, not every insurance lapse. A regular insurance card is not a substitute.

  Source 7

What to do after a crash

1. Stop immediately at or near the scene, return if needed and remain to give information and help anyone injured. Avoid blocking traffic more than necessary.

   Applies to: Injury, likely injury or death, or damage to an attended vehicle.

   Source 18

2. Give your name, address, registration number and liability insurer's name. Show your license if requested and available. Give reasonable help to injured people, including arranging necessary medical transport.

   Applies to: Crash involving injury, death or damage to an attended vehicle.

   Source 8

3. If the crash injures or kills anyone, or a vehicle is too damaged to be driven normally and safely, immediately notify police in a municipality. Within 100 feet outside it, notify local police or the sheriff. Elsewhere, notify the sheriff or nearest DPS office. Use the quickest communication available.

   Applies to: Injury, death or vehicle damage that prevents normal and safe driving. This immediate driver notice rule has no dollar threshold.

   Source 9

Talk through the family policy

• Before supervised practice, tell the insurer that your teen has a permit. Ask who is covered, whether the teen must be listed, and whether any driver is excluded. Check again when the teen becomes licensed. Ask for the answer in writing.

  Applies to: Family planning checklist, not a universal enrollment deadline. Policy terms vary.

  Source 12

• Read the family policy together. Confirm the drivers, vehicles, uses, limits and exclusions. A permit and a driver license are different stages; do not assume the policy treats them the same.

  Applies to: Questions to ask your insurer about your own contract.

  Source 12

• TDI describes adding a young driver to the family policy or obtaining a separate policy. Some companies require all household members of driving age to be listed. Tell the insurer when someone starts driving or turns 16.

  Applies to: Texas consumer guidance; confirm permit and license treatment under your policy.

  Source 10

Questions about cost factors

• Ask whether good student status or completed driver education affects your policy, what proof is needed and when eligibility ends. These are questions to check, not a promise of a discount or savings.

  Applies to: General planning questions. The cited New York consumer guide describes examples, not a benefit required in every state.

  Source 16

• Keep a clean driving record and ask how tickets and crashes affect your policy. A clean record does not promise a particular price.

  Applies to: General planning guidance; the insurer and policy determine the result.

  Source 17

Five terms to know

Premium

The amount you pay for an insurance policy. Source 13

Deductible

The part of a covered loss you must pay yourself when that coverage has a deductible. Source 13

Liability

Responsibility for harm to other people or their property. Liability coverage helps pay covered losses you cause. Source 14

At fault

Responsible for causing a crash. Responsibility can be shared. Source 15

Coverage

The protection a policy provides, subject to its limits and exclusions. Source 12

Check your understanding

Official sources

Each rule above links to its evidence below. Check the agency source for the full rule and exceptions.

1. Texas Transportation Code: liability limits

   Section 601.072(a-1). Reviewed 2026-11-03.

2. Texas Transportation Code: financial responsibility

   Section 601.051. Reviewed 2026-11-03.

3. Texas Insurance Code: PIP

   Sections 1952.152 and 1952.153. Reviewed 2026-11-03.

4. Texas Insurance Code: uninsured motorists

   Section 1952.101. Reviewed 2026-11-03.

5. Texas Transportation Code: uninsured operation

   Section 601.191. Reviewed 2026-11-03.

6. Texas Transportation Code: repeat convictions

   Section 601.231. Reviewed 2026-11-03.

7. Texas DPS: SR-22 certificates

   Financial Responsibility, Conviction or Judgment. Reviewed 2026-11-03.

8. Texas Transportation Code: crash information and aid

   Section 550.023. Reviewed 2026-11-03.

9. Texas Transportation Code: immediate notice

   Section 550.026. Reviewed 2026-11-03.

10. Texas Department of Insurance: young drivers

    Auto insurance for young drivers. Reviewed 2026-11-03.

11. Texas Driver Handbook: original license

    Chapter 1, Your License to Drive. Reviewed 2026-11-03.

12. California Department of Insurance: policy basics

    Your Auto Policy and Compare Policies. Reviewed 2026-11-03.

13. California Department of Insurance: insurance terms

    Auto Insurance Costs. Reviewed 2026-11-03.

14. California Department of Insurance: liability

    Liability Coverage. Reviewed 2026-11-03.

15. California Department of Insurance: glossary

    Comparative negligence. Reviewed 2026-11-03.

16. New York Department of Financial Services: policy questions

    Discounts and driver training. Reviewed 2026-11-03.

17. New York Department of Financial Services: driving record

    Driving Record. Reviewed 2026-11-03.

18. Texas Transportation Code: stopping after a collision

    Sections 550.021 and 550.022. Reviewed 2026-11-03.