Updated July 2026
What Is Minimum Coverage Car Insurance Insurance?
Minimum coverage car insurance in Texas consists of bodily injury liability and property damage liability at the state-required limits. If you cause an accident, this coverage pays for the other driver's medical expenses up to $30,000 per person and $60,000 total per accident, plus up to $25,000 for their vehicle and property damage. It does not pay for your own injuries, your own vehicle repairs, or damage caused by uninsured drivers who hit you.
- You're at fault in a rear-end collision. The other driver has $18,000 in medical bills and $6,500 in vehicle damage. Your minimum liability policy pays all $18,000 in medical costs and all $6,500 in property damage because both fall within your limits. Your own vehicle damage and any injuries you sustained are not covered.
- An uninsured driver runs a red light and totals your car. Your vehicle is worth $14,000 and you have $9,000 in medical bills. Because minimum coverage includes no uninsured motorist protection and no collision coverage, your policy pays nothing. You must sue the at-fault driver personally to recover costs.
- You cause an accident involving three vehicles. Total medical bills reach $95,000 and property damage totals $42,000. Your policy pays the maximum $60,000 for medical bills and $25,000 for property damage. You are personally liable for the remaining $35,000 in medical costs and $17,000 in property damage.
Who Needs Minimum Coverage Car Insurance Insurance?
Minimum coverage makes sense if you drive an older vehicle worth less than $3,000, have no assets a lawsuit could reach, and can afford to replace your car out of pocket. It's also the only legal option if you cannot afford higher limits and need to register your vehicle and maintain your license.
Compare the annual cost of full coverage to the value of your vehicle and your ability to pay out of pocket for a total loss. If full coverage costs less than 10 percent of your car's value and you cannot replace the vehicle with cash, the additional coverage is worth the cost. If your car is worth less than two years of the premium difference, minimum coverage is defensible.
How Much Does Minimum Coverage Car Insurance Insurance Cost?
Minimum coverage in Texas typically costs $45 to $85 per month, or approximately $540 to $1,020 annually.
- Your driving record — one at-fault accident in the past three years can increase minimum coverage premiums by 30 to 50 percent.
- Your ZIP code — urban areas with higher accident rates and theft often see premiums 20 to 40 percent higher than rural counties.
- Your age and experience — drivers under 25 or over 70 typically pay 15 to 35 percent more for the same minimum limits.
- Your credit-based insurance score — Texas allows carriers to use credit history, which can double premiums for drivers with poor credit.
- Your annual mileage — drivers commuting more than 15,000 miles per year often pay 10 to 20 percent more than those driving under 7,500 miles.