Driving without insurance is an offense that drives up insurance costs for everybody and leaves you unprotected if you’re involved in an accident. According to the Insurance Information Institute, nearly one in seven drivers, or 14% of drivers, have no insurance. The Wall Street Journal found this has risen by three percentage points since 2019.
Insurance costs are rising, but that’s no excuse for not driving without insurance. States like Texas have already implemented automated verification systems to catch drivers without a valid policy.
In this guide, we discuss the car insurance laws in Texas and what happens if you don’t have insurance.
Key Takeaways
Texas law requires all drivers to carry a minimum amount of auto insurance liability coverage to cover bodily injury and property damage.
Drivers must have 30/60/25 liability coverage, which is $30,000 per injured person, $60,000 maximum per accident, and $25,000 for property damage.
All drivers must have sufficient coverage to drive, even if they’ve just bought a vehicle. Still, Texas allows drivers with existing coverage to carry over their policies for a short 20-day grace period.
Penalties for driving without insurance in Texas range from fines to impoundment fees, driver's license and vehicle registration suspension and revocation, as well as the requirement to carry an SR-22 certificate.
Drivers who have previously been caught driving without insurance can expect dramatic increases in their premiums.
If you’re involved in an accident with an uninsured driver, speak to an attorney to learn more about your options and claim the compensation you deserve.
What are the Car Insurance Laws in Texas?
Carrying a minimum amount of car insurance is required to drive on public roads in Texas. According to the Texas Department of Insurance, all drivers must have a minimum of 30/60/25 in liability coverage, or $30,000 for every injured person, up to $60,000 per accident, and $25,000 for property damage.
However, remember that these are only the minimum requirements. Only carrying the minimum liability insurance can still leave you paying out-of-pocket for accidents you’re involved in. For example, many motorists also carry collision coverage, which covers the costs of repairing their vehicles regardless of whether they are at fault.
Whenever you purchase coverage or renew your existing policy, your insurance must provide you with a copy of the Texas Consumer Bill of Rights.
Not carrying insurance leads to various consequences, including fines, suspension of your driving privileges, and even a criminal record. Despite that, Bankrate found that 8.3% of drivers in the Lone Star State continue to drive without insurance.
How Long Can You Drive Without Insurance After Buying a Car in Texas?
You can’t drive without insurance per Texas law. All drivers are required to have car insurance immediately. However, Texas’s grace period allows drivers to carry over coverage from a previous vehicle for 20 days, with some drivers enjoying up to 30 days.
Many people refer to Texas’s new car rule as a grace period, but this technically isn’t true. It only allows you to drive a new or used car off the lot if you already hold insurance on a previous vehicle. How much coverage you have and the rate you pay depends on whether you’ve bought a new car to replace an old one or purchased an extra vehicle.
Here’s how it works:
Replacement Car – Your new car will receive the same coverage as the car you’ve replaced for the grace period.
Additional Car – You’ll receive the same amount of coverage as the vehicle with the highest level of coverage.
Tell your insurance company you purchased another vehicle as early as possible to ensure your coverage remains in force. If you don’t meet the 20-day grace period for buying a new insurance policy, your auto insurance company could opt to cancel your policy.
If your policy gets canceled, you lose your coverage immediately, and you won’t have the chance to renew it. However, some drivers aren’t ready for a long-term policy, so consider a temporary policy to give yourself some extra breathing space.
What are the Penalties in Texas for Driving Without Insurance?
Texas levies a range of penalties for dealing with drivers without insurance, including fines, license and registration surcharges, vehicle impoundment, and increased insurance rates. Moreover, if you’re involved in an accident without insurance, you personally bear financial responsibility for the damages.
The Lone Star State levies some of the heaviest penalties on uninsured drivers. However, it’s already paid dividends. According to ValuePenguin, Texas has seen one of the largest decreases in uninsured drivers.
Let’s go into the penalties you face for driving uninsured further.
Fines and Fees
Driving without motor vehicle insurance instantly opens you up to mandatory penalties:
First Offense – A fine of $175 and $350. First offenders may also be able to get a reduced fine if they can’t afford to pay.
Second Offense – A fine of between $350 and $1,000.
Drivers’ Licenses and Vehicle Registrations Surcharges
Driving without insurance isn’t something that goes away with a simple fine. In Texas, uninsured drivers face an extra $250 surcharge every year when they register their vehicles. This is a relatively recent law set under Transportation Code 708.103 in 2015.
Drivers’ License Suspension
First offenders can get off without losing their license, but Texas law states that your license is subject to suspension upon a second or subsequent offense. The suspension term is two years, and you’ll have to present an auto insurance policy and a $100 reinstatement fee to get it back. Meanwhile, your vehicle registration will also be suspended.
Vehicle Impoundment
Your vehicle will also be immediately taken off the road and impounded at your expense. These fees are $15 per day for 180 days. In other words, you face paying up to $2,700 to get your car back.
Note that the 180-day limit is the minimum period your vehicle will be impounded for. That’s why people with beater cars often abandon their vehicles, as the impoundment costs are often more than the car is worth.
Higher Insurance Premiums
Auto insurance companies view drivers with a previous conviction for driving without insurance as a higher risk. Expect to pay higher insurance premiums if you’ve been convicted of driving without insurance.
Sometimes, private insurance companies may even refuse to provide auto insurance entirely. If two or more companies reject you, you must apply to the Texas Automobile Insurance Plan Association (TAIPA). Coverage is guaranteed, but it’s extremely limited and more expensive.
Financial Responsibility
The biggest consequence of driving without insurance is total liability for any accident you’re involved in. Texas is an at-fault state, meaning the at-fault driver pays. Typically, your insurance company would cover the costs, but without insurance, everything comes out of your pocket.
Some of the costs you could end up paying include:
Medical bills
Lost wages
Pain and suffering
Property damage
Unfortunately, even minor claims could add up to tens of thousands of dollars. It’s a financial millstone around your neck that could haunt you for years.
What are the Minimum Auto Insurance Requirements in Texas in 2024?
Texas only requires liability coverage for all drivers. Its liability coverage is broken down into $30,000 per person for bodily injury, $60,000 in bodily injury coverage per accident, and $25,000 for property damage. It’s often referred to as the 30/60/25 model.
Is the minimum auto insurance coverage enough to protect drivers if they’re at fault for a significant accident?
The fact is that most claims are far in excess of the coverage limits provided by minimum liability coverage. Anything above what your insurer will cover must be covered by you. Generally, having around $500,000 in coverage makes sense to ensure you’re prepared for any accident.
It's also wise to take the following coverage when you obtain insurance:
Collision coverage
Comprehensive coverage
Uninsured/underinsured motorist coverage
Personal Injury Protection (PIP)
What if You Have Insurance, But the Vehicle is Uninsured?
Drivers cannot have auto insurance but have an uninsured vehicle. Like most states, Texas auto insurance follows the vehicle, not the driver, in nearly all circumstances. If you have insurance on another vehicle, ensure that your policy covers additional vehicles, or you may find that your vehicle is not actually insured at all.
Here’s a rundown of the coverage that follows the vehicle:
Bodily injury liability
Personal injury liability
Collision coverage
Comprehensive coverage
Since auto insurance policies follow the car, you can allow a friend or family member to borrow your vehicle with permission and drive it knowing they’re fully insured. The only caveat is that they must have had permission to drive someone else's car.
What Happens if an Uninsured Driver Crashes Into My Car in Texas?
Getting hit by an uninsured driver is a unique challenge because it means they don’t have the necessary coverage to compensate the parties they injure. You have two options: utilizing your uninsured motorist coverage or filing a personal injury lawsuit.
Here are your two options:
Uninsured Motorist Coverage
Uninsured motorist coverage is an optional extra for your existing insurance policy. No requirement exists in Texas law to carry this coverage, but road safety experts recommend it because of how many uninsured drivers are on the roads.
The purpose of this coverage is to provide coverage when a driver without insurance hits you. It can also be used when the at-fault driver’s insurance policy doesn’t have enough coverage to cover your losses.
Uninsured motorist coverage includes:
Medical Costs—Uninsured motorist coverage helps cover medical expenses, including doctor visits, hospital bills, and the costs of rehabilitation, including therapy.
Lost Wages – If you have to take any time away from work, this coverage will step in to provide you with the financial stability needed to recover.
Property Damage – Uninsured motorist coverage can also pay to get your car back on the road by covering the repair costs.
Filing a Personal Injury Lawsuit
Your second option, if you don’t have uninsured motorist coverage, is to file a personal injury lawsuit against the other driver via a car accident attorney. However, you must consider the challenges involving liability and actually collecting damages.
The first issue is proving liability. Your attorney must demonstrate that the other driver was negligent or reckless. Remember, simply not having insurance doesn’t make them at fault for the accident. Plus, under the modified comparative negligence standard, you can’t recover damages if you’re considered more than 50% responsible for the accident.
The other issue with tackling uninsured drivers via this route is collecting damages. Many uninsured drivers cite not having the money to afford the minimum amount of auto insurance. If they haven’t bought an insurance policy, they likely don’t have significant financial resources to tap into either.
Granted, the uninsured driver might have some personal assets, but there are always challenges in identifying them, let alone finding sufficient assets to cover your damages. Either way, if you’re planning to file a lawsuit, ensure you contact a personal injury lawyer to push your claim first.
Proving Insurance Coverage After a Violation: The SR-22 Requirement
Many states levy an SR-22 requirement on drivers with previous infractions on their records. It’s known as a Certificate of Financial Responsibility and demonstrates that you are carrying the appropriate level of insurance to get behind the wheel.
One of the biggest misconceptions is that an SR-22 is your insurance policy, but this isn’t the case. Your insurance company reports that you have the necessary amount of insurance to the Texas DMV. Not everyone requires an SR-22, but you might if you’ve previously committed an offense.
Certain violations can trigger the SR-22 requirement by putting you in the “high-risk” driving category. These violations include:
Driving Under the Influence (DUI)
Uninsured accidents
Multiple traffic violations
License suspension
License revocation
Serious driving offenses (reckless driving, hit-and-run, etc.)
In most cases, you’ll be expected to carry an SR-22 for two to three years. However, the period can be extended if you commit any further violations. It’s also worth mentioning that habitual offenders may be required to carry an SR-22a.
An SR-22a is part of the same family, but there are differences. This variant requires you to get the form from your insurance provider. Plus, it’s standard to have to pay a minimum of six months of insurance premiums upfront.
Expect to pay around $15 to $25 for an SR-22. Although this might sound a relatively small amount, the real cost of compliance is in the higher auto insurance premiums you’ll be expected to pay for being a high-risk driver.
What Steps Should You Take After a Car Accident?
Getting involved in a car accident is a traumatic event that can take its toll on anyone. What you do in those first few minutes and hours will have an enormous impact on your claim. Knowing how to react and who to call is critical for ensuring you get the justice you deserve.
Follow these steps after your car accident:
Step One – Check yourself and your passengers for injuries. Your first priority is to get to safety. If you notice any serious injuries, call 911 and request an ambulance to attend immediately.
Step Two – Call the police and ask a police officer to attend. You’re required to do this in Texas if there are any injuries or the property damage exceeds $1,000 anyway. They’ll arrive and fill out an official police accident form.
Step Three – Exchange insurance information with the other driver. You’re required to do this by law. Failing to do so is a criminal offense that can lead to severe legal penalties against you.
Step Four – Gather evidence from the accident scene. Take pictures of the vehicles and any damage, visible injuries, and road signage, and speak to any eyewitnesses who may have seen what happened. Ask any eyewitnesses to provide their contact details, but beware that they’re not legally required to do so.
Step Five – Once everything is done, take yourself to your nearest medical facility. Even if you feel completely fine, many injuries may not appear until hours later when the adrenaline has worn off. Whiplash and concussions are notorious for being delayed.
Step Six – Inform your insurance provider that you have been involved in an accident and contact your lawyer to begin putting the wheels in motion for your claim.
Always defer to your lawyer when it comes to pursuing a claim against another driver. A Texas personal injury attorney can use their legal expertise and knowledge to maximize your compensation award while allowing you to recover from your injuries in peace.
Driving Without Insurance FAQs
What if I have auto insurance but can’t provide proof to a traffic officer?
Not being able to produce proof of a valid insurance policy is an offense in itself, and an officer can choose to provide you with a traffic ticket. If you’re given a traffic ticket, you can visit your local court with proof of insurance. In some cases, the court may choose to waive the fee, but it’s entirely within their discretion.
What impact does driving without insurance have?
Driving without insurance doesn’t just stop at the driver. High numbers of uninsured drivers impact local communities, accident victims, and the insurance landscape. The number of uninsured drivers has driven up insurance premiums, making affordable car insurance less available because this is how insurers compensate for the added risk of covering damages caused by uninsured drivers.
Can you go to jail for driving without insurance in Texas?
No, you can’t go to jail for driving without insurance in Texas. Under Texas law, driving without insurance is classified as a misdemeanor, not a felony.
Despite this, some uninsured drivers have gone to jail in the past. In these cases, they either committed a serious driving offense or committed several misdemeanors in a short period of time.
