Driving without car insurance is never a wise idea. Crash into someone else, and you’ll be paying all costs out of pocket. If serious injuries occur, you could be left with a six or seven-figure bill. Auto insurance shields you from this by protecting you if you’re involved in an accident that was your fault.
Driving in Texas without auto insurance is always illegal. Almost every state makes auto insurance mandatory, with the sole exception being Florida. Breaking the law means you could suffer enormous consequences, including fines and the suspension of your driving license.
If you’re involved in a crash without insurance, the legal and financial consequences can be severe. Those facing lawsuits or injury claims after an accident may need an Austin car accident lawyer to navigate liability disputes and protect their rights.
In today’s guide, we’ll discuss Texas car insurance laws, the penalties for driving without insurance, and what happens if you’re in an accident when you’ve got no insurance.
Key Takeaways
Texas requires all drivers to carry a minimum amount of liability insurance: $30,000 per passenger, $60,000 per accident, and $25,000 for property damage, including if they're driving a rental car.
Approximately 20% of Texas drivers are estimated to possess no form of insurance, with one in seven drivers nationwide.
Penalties for driving without auto insurance in Texas range from fines to vehicle impoundment, court fees, and the potential for your license to be suspended.
You cannot go to jail in Texas simply for not having auto insurance. However, if you cause a serious accident, you may be subject to additional charges, which could include jail time.
If you’re in an accident without insurance, you assume full financial responsibility and could be subject to a personal injury claim made against you.
If you’re the victim of an accident and don’t have insurance, you still have the legal right to claim a settlement from the at-fault driver’s insurer or file a personal injury lawsuit.
Drivers who are ticketed for having no insurance or a proof of insurance declaration page may be able to get their tickets dismissed if they fall into one of the narrow exemptions or can prove to the courts that they had valid insurance at the time.
Speak to a car accident attorney if you were involved in an accident with a driver who wasn’t insured or if you’re facing a lawsuit because you didn’t have insurance at the time.
What are the Texas Car Insurance Laws?
Texas mandates that all drivers carry auto insurance. Under Texas law, drivers must possess a minimum liability coverage under the 30/60/25 model, meaning your policy should cover $30,000 per passenger, $60,000 per accident, and $25,000 for property damage.
Despite laws mandating every driver to carry auto insurance, a substantial number of drivers fail to take out a valid policy. According to the Insurance Research Council, an average of 658,241 drivers in every state drive without coverage. The Insurance Information Institute reported in 2022 that it equates to one in seven drivers.
Additionally, all drivers are required to carry proof at all times they can show to a police officer. You may carry a paper version of your insurance policy or a digital version. Most experts recommend you carry both.
How Many Drivers in Texas Have No Insurance?
The Texas Department of Insurance states that 12% of all registered motor vehicles aren’t listed on any Texas car insurance policy. Likewise, TexasSure reveals the extent of the issue, with 20% of drivers carrying no insurance.
Reasons for not carrying insurance vary, but most drivers claim they can’t afford rising auto insurance premiums, whereas others simply believe they’ll never get caught. Unfortunately, complying with the law is the least of your worries if you’re involved in a serious accident that was your fault.
What are the Penalties for Driving Without Insurance in Texas?
Penalties for driving without insurance in Texas can be substantial, including fines, license surcharges, vehicle impoundment, and license suspension. You’ll also be financially liable for all costs of accidents you cause.
Here’s a breakdown of all the penalties you could be assessed:
Fines – Fines range from $175 to $350 for a first offense to $450 to $1,000 for second and subsequent offenses.
License and Registration Surcharges – Uninsured drivers may also receive a license and registration surcharge during the annual renewal of their vehicle, valued at $250 per year.
Vehicle Impoundment – Traffic officers have the right to impound your vehicle for 180 days. Courts will charge $15 per day for 180 days to impound your vehicle. Moreover, you’ll need to provide proof of insurance to get it out.
License Suspension – If it’s not your first offense, Texas law allows your license to be suspended. You’ll need to pay $100 to have it reinstated and wait two years from the date of your conviction to drive again legally.
Increased Auto Insurance Premiums – Insurers take a dim view of drivers who travel without insurance. Expect to pay higher premiums when you do take out a policy. You may also be forced into Texas Automobile Insurance Plan Association (TAIPA) coverage, which is guaranteed but provides limited coverage and is considerably more expensive.
SR-22 Requirements – You’ll be subjected to the SR-22 requirement, a certificate proving that you’ve got the minimum amount of coverage.
Financial Responsibility – Cause a car accident as an uninsured driver, and you assume financial responsibility for that accident. You could be liable for everything from the other driver’s medical bills to lost wages and pain and suffering.
It’s fair to say that the financial penalties are enormous, and the amount you might save by not paying regular insurance premiums pales compared to getting caught driving without insurance.
Can You Go to Jail for No Insurance in Texas?
Uninsured drivers cannot go to jail for not having a valid auto insurance policy in Texas, regardless of how many times they’re caught driving without insurance. However, although you cannot go to jail simply for not having an insurance policy, you can go to jail if you cause an accident.
What you might be charged with depends on the severity of the accident. According to Bankrate, simply causing an accident while being uninsured may result in facing a jail term of up to six months. On the other hand, if someone dies in an accident that was your fault, you could face up to three to five years in jail.
Penalties in Texas for a First Offense
First-time offenders are treated relatively leniently under the Texas legal system. The penalties are usually restricted to fines and extra surcharges. First-time offenders typically keep their licenses, assuming they didn’t cause an accident.
Here’s what penalties you can expect:
A fine of $175 to $350.
License and registration surcharge of $250 for the next three years.
Potential vehicle impoundment.
How harsh the punishment is depends on the circumstances and the opinion of the officer who pulled you over.
Penalties for Repeat Offenders
Penalties for repeat offenders go up significantly. First-time offenders may have simply made a mistake with their renewal dates, but multiple offenses are often seen as intentional, which is why you’ll be fined and may even see your Texas driver’s license suspended.
Here’s what that might look like:
A fine of $350 to $1,000 (up to $1,750 for third and subsequent offenses).
License and registration surcharge of $250 for the next three years.
Additional risk of vehicle impoundment.
Suspension of your license and registration.
Again, the circumstances will determine your punishment. If you were driving under the influence or caused an accident resulting in bodily injury or death, you could even be charged criminally.
What Happens if You Get in an Accident Without Insurance in Texas?
Driving without auto insurance is always an offense, regardless of whether the accident was your fault or not. However, since Texas is an at-fault state, how fault is determined will depend on the consequences you face. In all circumstances, you’ll still face the standard fines and other punishments for driving without insurance.
If the Accident Was Your Fault
If you were blamed for the accident and you weren’t carrying insurance, you’ll be liable for all financial responsibility. Since you have no insurance, you could be subject to a personal injury lawsuit filed against you personally. Any settlement must be paid out of your own pocket. Moreover, you’ll assume all legal fees.
If the Accident Wasn’t Your Fault
Uninsured drivers involved in accidents that weren’t their fault can still receive a settlement. They will deal with the other driver’s insurance company and could still receive damages related to their accident.
On the other hand, you’ll still face the penalties of driving without insurance, even if the accident is determined to be 100% the other driver’s fault.
What are the Texas Car Insurance Requirements?
Texas law uses the 30/60/25 coverage model. All drivers must have liability coverage, which provides $30,000 for injuries per person, $60,000 per accident, and $25,000 for property damage coverage. Although these are the minimum requirements, understand that they are not sufficient for serious accidents. It’s strongly recommended that drivers have additional coverage.
Beyond these requirements, drivers are free to take out extra coverage to protect themselves. Although the Texas Department of Transportation reveals that 80% of drivers have at least the minimum coverage, around half of all drivers would be classified as underinsured, meaning they only have the minimum coverage.
That’s why most legal professionals refer to traffic safety experts, who recommend taking out more than the minimum coverage to defend themselves from potentially being sued.
Types of Insurance Coverage in Texas
The Texas minimum car insurance requirements are straightforward, but how much protection should you actually have? Several packages exist, but which options should drivers ideally have to ensure they’re protected?
Liability Coverage – Liability coverage represents the legal minimum every driver must have in Texas to cover issues like accident property damage liability and bodily injury liability.
Personal Injury Protection (PIP) - PIP coverage pays for all medical expenses and lost wages, regardless of who was at fault. This can be vital if you're injured in an accident that you're blamed for.
Collision Coverage – Collision coverage is always required if you’re financing a car. This package will cover damage to your vehicle regardless of who was at fault.
Comprehensive Coverage – This type of protection covers anything that happens to your vehicle besides a collision. For example, comprehensive insurance will pay out if your car is stolen, vandalized, or damaged due to adverse weather.
Uninsured/Underinsured Motorist Coverage – Everyone should have this coverage because it covers bodily injury and property damage if you’re hit by a driver who doesn’t have insurance or doesn’t have sufficient dollar coverage to cover your damages.
Proving Insurance Coverage After a Violation: The SR-22 Requirement
The SR-22 certificate of insurance comes into play when drivers have been convicted of driving without insurance or have had their driving privileges revoked in the past because of traffic violations. Essentially, it’s proof of insurance coverage and is legally required to get back behind the wheel.
Your certificate must be filed with the Texas Department of Motor Vehicles (DMV) and proves that you meet the state’s minimum insurance requirements. In Texas, the SR-22 requirement lasts for two to three years, depending on the circumstances.
Drivers required to comply with the SR-22 requirement will typically spend more on insurance because of their previous violation history. If you’ve had your license suspended and are looking to get back on the road, a traffic attorney can help you navigate the SR-22 requirements.
What if You Have Insurance, But the Vehicle is Uninsured?
You cannot have insurance but have a vehicle that is uninsured because auto insurance generally follows the vehicle, not the registered driver. If your vehicle is uninsured, you don’t have insurance.
Some exceptions exist to this rule, but what if you’ve borrowed the vehicle? Known in the insurance world as “permissive use,” this is where you’ve been given permission to operate someone else’s vehicle. In this case, your auto insurance policy may still cover damages and injuries.
In the case of your own vehicle, your vehicle will either have insurance or it won’t since auto insurance is nearly always linked to the vehicle, not the driver.
What Happens if You Hit a Car Without Insurance in Texas?
Getting hit by another driver who doesn’t have insurance can cause problems when attempting to claim damages. If the driver isn’t insured, consult your existing coverage. If you have uninsured/underinsured motorist coverage, your insurer will cover your costs up to your policy’s limits.
Some drivers may also have other types of coverage, like collision coverage, which covers some of their costs, regardless of who was at fault. However, if you only have the minimum liability coverage, you may have to resort to filing a personal injury lawsuit.
Filing a personal injury claim allows you to sue the uninsured driver for your damages. The only problem with this is that the other driver must have sufficient assets from which you can extract compensation. Since many uninsured drivers often can’t afford current auto insurance premiums, many accident victims have trouble receiving a fair settlement, even if they win, because there’s nothing to collect on.
Once again, that’s why possessing more than the minimum auto insurance coverage is such a wise idea.
How Do You Beat a No-Insurance Ticket in Texas?
Receiving a ticket for no insurance in Texas requires the driver to prove they had a valid insurance policy or fit into one of the few exceptions to the rule. Generally, if you didn’t have a policy, there’s no way to beat one of these tickets.
Firstly, what are the exemptions to Texas’s car insurance laws?
You’re driving a military vehicle that’s more than 25 years old.
You’re driving a parade or exhibition vehicle that is ordinarily not used for transport.
You’re driving a collector vehicle.
You’re using a neighborhood electric vehicle.
You’re driving a golf cart.
It’s up to you to prove an exemption. Note that according to the case Arias v. State, the state isn’t required to disprove each affirmative defense to provide proof to the court.
Assuming an exemption doesn’t apply to you, the only other way to beat a Texas no-insurance ticket is to demonstrate you had insurance at the time. This scenario often happens when drivers weren’t carrying proof of insurance at the time but did have a policy in place.
You’ll need to appear in court with proof of insurance, and a judge must dismiss the charge after verification.
So, what are the defenses to either having no insurance or no proof of insurance?
The driver possessed a valid insurance policy.
The driver was operating the vehicle for repair purposes.
The person in possession of the vehicle wasn’t the owner.
The vehicle wasn’t subject to Texas’s insurance requirements.
You own 25 or more vehicles and have chosen to self-insure.
Law enforcement didn’t possess a valid reason to stop the vehicle at the time.
If your reason for not having insurance or proof of insurance doesn’t fit into this list, you won’t be able to get the ticket dismissed. Contact a lawyer for support in fighting to get your ticket dismissed.
What are Your Legal Rights if You Are in an Accident With an Uninsured Driver?
Were you involved in an accident with an uninsured driver? Your first option is to claim through your coverage options, such as if you have uninsured/underinsured coverage. However, you also have the right to file a personal injury lawsuit against the other driver. Essentially, you’ll sue them personally because they don’t have an insurance company for you to approach.
Filing a claim directly against an uninsured driver doesn’t change the fact that you’ll still need to prove:
The driver had a duty of care to you.
The driver breached that duty of care through their actions/inactions.
You suffered losses as a result of the actions/inactions.
Remember, Texas is an at-fault state, so it’s the at-fault driver that’s liable for your damages. However, remember that you must be less than 50% to blame for the accident to claim monetary compensation under Texas law. The fact that the other driver was uninsured doesn’t automatically assign the blame to them.
Texas Auto Insurance Laws FAQs
What is the difference between full coverage and liability insurance in Texas?
Liability insurance is the minimum required insurance amount in the Lone Star State. Full coverage is a term that refers to several coverage types bundled into a single package to protect your vehicle from most eventualities. For example, most full coverage policies cover collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage.
Why are Texas auto insurance rates so high?
According to a report from Texas Watch, Texas auto insurance rates have jumped 25% from year to year. Rates are so high for several reasons, including high congestion throughout Texas’s cities, the high auto fatality rate, more severe weather events, and high repair costs.
Why is the uninsured rate so high in Texas?
The uninsured rate is so high in Texas partly because the state has some of the highest auto insurance rates in the country. With people struggling with the cost of living, more drivers are taking a chance and hoping they don’t get caught driving without insurance. Moreover, experts have cited a lack of education and awareness of the law as one of the key contributors to the high uninsured rate.
