Do You Need Insurance to Register a Car in Texas in 2025
Texas law mandates motor vehicle liability insurance for all vehicles operated on public roadways. Under the Texas Transportation Code, Chapter 601, the Motor Vehicle Safety-Responsibility Act, financial responsibility must be established before a vehicle may be registered or operated in the state. The requirement applies to both initial registration and annual registration renewal.
Legal Requirement for Insurance Coverage
Section 601.051 of the Texas Transportation Code establishes that a person may not operate a motor vehicle in Texas unless financial responsibility is established through one of several approved methods. Motor vehicle liability insurance represents the most common method of establishing financial responsibility. The requirement applies to all motor vehicles operated on public roadways, with limited exceptions for specific vehicle categories.
The Texas Department of Motor Vehicles administers vehicle registration throughout the state. The department maintains offices in communities across Texas and processes registration applications, renewals, and transfers through county tax assessor-collector offices. Insurance verification occurs as part of the registration process to ensure compliance with financial responsibility requirements established under Chapter 502 of the Texas Transportation Code.
Motor vehicle operators must maintain continuous insurance coverage throughout the registration period. Operating a vehicle without established financial responsibility constitutes a violation of Texas law and may result in suspension of driving privileges, vehicle registration suspension, and administrative penalties ranging from $175 to $350 for first violations.
Texas Department of Motor Vehicles
4000 Jackson Avenue, Austin, TX 78731
Phone: (888) 368-4689
Official Website: Texas Department of Motor Vehicles
Minimum Insurance Coverage Requirements
Section 601.072 of the Texas Transportation Code establishes minimum coverage amounts for motor vehicle liability insurance. The Texas Department of Insurance regulates insurance companies and provides guidance on coverage requirements. Texas requires drivers to maintain liability insurance coverage that meets or exceeds statutory minimum amounts established by state law.
| Coverage Type | Minimum Amount |
|---|---|
| Bodily injury or death of one person | $30,000 |
| Bodily injury or death of two or more persons | $60,000 total |
| Property damage or destruction | $25,000 |
The minimum coverage requirements apply to liability insurance only. Texas law does not mandate collision coverage, comprehensive coverage, or medical payments coverage, though lenders typically require comprehensive and collision coverage for financed vehicles. Personal injury protection coverage is available as an optional coverage in Texas, but it is not required by law. Insurance companies offer uninsured motorist coverage and underinsured motorist coverage, but these may be rejected in writing by the policyholder.
Texas Department of Insurance
333 Guadalupe Street, Austin, TX 78701
Phone: (800) 252-3439
Official Website: Texas Department of Insurance
Proof of Insurance Documents
In Texas, you must carry proof of motor vehicle liability insurance at all times while operating a motor vehicle. The following formats are accepted:
- Insurance ID Card (Paper): The traditional printed insurance card provided by your insurance company shows your policy information and coverage details.
- Digital Insurance Card (Electronic): Texas accepts electronic proof of insurance on your smartphone or mobile device. You can display your insurance information from your insurance company's mobile app or as a stored digital document.
- Full Insurance Policy: The complete insurance policy document that evidences coverage.
- Declaration Page: The declaration page from your policy that summarizes your coverage amounts and effective dates.
- Insurance Binder: A temporary proof of insurance document issued while your full policy is being processed.
Texas law requires insurance documents to display specific information, including the name of the insured, the policy number, the policy effective dates, the name of the insurance company, and the vehicle identification number. Insurance identification cards issued by insurance companies authorized to write motor vehicle liability insurance in Texas satisfy proof of insurance requirements.
Exceptions to Insurance Requirements
Limited exceptions to the financial responsibility requirement exist under Texas law:
- Self-Insurance: Motor vehicle owners who qualify under Section 601.124 of the Texas Transportation Code may obtain a certificate of self-insurance from the Texas Department of Motor Vehicles.
- Deposit of Securities: Owners may deposit securities with the comptroller as authorized under Section 601.122 of the Texas Transportation Code.
- Government Vehicles: Vehicles owned by governmental entities as specified in Section 601.002 of the Texas Transportation Code.
- Farm Vehicles: Certain farm vehicles operated within specified distance limitations from the owner's farm or ranch.
- Off-Highway Vehicles: Vehicles not operated on public roadways and properly registered as off-highway vehicles.
Vehicle owners claiming exceptions must provide documentation supporting the exception during the registration process. County tax assessor-collector offices verify eligibility for exceptions before processing registration without insurance verification.
Insurance Requirements for Vehicle Registration
The Texas Department of Motor Vehicles requires verification of insurance coverage before processing vehicle registration applications and renewals. County tax assessor-collector offices throughout Texas handle registration transactions and access the TexasSure verification system to confirm active insurance coverage. Registration applications without verified insurance coverage are not processed until the applicant establishes financial responsibility.
Insurance coverage must remain continuous throughout the registration period. Allowing insurance to lapse during the registration period is a violation of Texas law and triggers administrative penalties. The Department of Motor Vehicles monitors insurance status continuously and issues violation notices when coverage lapses occur. Motorists who receive lapse notifications must pay administrative surcharges and provide proof of current insurance to avoid suspension of driving privileges and vehicle registration.
New Texas residents registering vehicles from other states must establish Texas insurance coverage before registration. Out-of-state insurance policies do not satisfy Texas registration requirements. New residents have 30 days from establishing residency to register vehicles and obtain Texas insurance coverage.
Online registration renewals through the Texas by Texas portal and county tax assessor-collector websites require active insurance coverage in the state verification system. The system confirms insurance status electronically before processing renewal transactions. Motorists whose insurance information does not appear in the TexasSure system must contact their insurance company to ensure policy information has been reported to the verification program.
County tax assessor-collector offices process registration transactions in person, by mail, and online, depending on local office capabilities. Registration fees vary based on vehicle type, weight, and county of residence. The standard passenger vehicle registration fee established by the Texas Department of Motor Vehicles applies statewide, with counties authorized to collect additional local fees. All registration transactions require verification of valid motor vehicle liability insurance coverage before completion.
