New Minimum Auto Liability Requirements

The state of Texas has increased the amount of auto insurance that you’re required to carry. Are you ready?


All Texas drivers are required to carry proof of financial responsibility. This is most commonly accomplished by purchasing an auto liability policy. The current minimum limits are $20,000 per person injured, $40,000 maximum in injuries per accident, and $15,000 in property damage. Your agent may refer to this coverage as “20/40/15”.

Effective April 1, 2008, the minimum liability requirements will be increased to “25/50/25,” or $25,000 per person injured, $50,000 in total injuries, and $25,000 in property damage.

You may purchase new auto policies that exceed the current minimum liability limits at any time. Some drivers, however, will elect to maintain the minimum amount of coverage. Some of the companies we represent have informed us that they will continue to issue the old 20/40/15 policies up until the April 1st deadline. After that time, all new policies will have at least 25/50/25 coverage. Existing policies will be renewed with the new minimum limits, with an increased premium.

For more information on the increased limits, please visit the Texas Department of Insurance website.