Car insurance in Texas (30/60/25)
- Minimum car insuranceTexas requires at least $30,000 per injured person, $60,000 per accident for injuries, and $25,000 for property damage. Every policy includes PIP unless you reject it in writing, and insurers must offer uninsured/underinsured motorist coverage, which you must also reject in writing if you don't want it. Source
- Fault systemTexas is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage. The Texas Department of Insurance describes Texas as an at-fault state. Source
Business insurance rules in Texas
- Workers’ compensationMost private Texas employers may choose whether to carry workers' compensation; employers that opt out are called non-subscribers and must notify their employees and the Division of Workers' Compensation. Public employers must have coverage, and certain building or construction contractors working for governmental entities must cover each employee on the public project. Source
- Contractor licensingTexas has no state general contractor or home builder license; the Texas Department of Licensing and Regulation licenses specific trades such as electricians and air conditioning and refrigeration contractors. Source
Home insurance in Texas
- Home insurer of last resortThe Texas FAIR Plan Association sells basic home insurance to people turned down by standard insurers, and TWIA sells wind and hail coverage to coastal residents (including parts of Harris County on Galveston Bay), where hurricanes are the main threat. TWIA coverage can't be bought while a hurricane is in the Gulf. Source
Disasters, floods, hail, tornadoes and earthquakes in Texas
| Measure | Texas | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 39 | #16 (tied) of 51 | Most often for flood (12), severe storm (9), hurricane (8). Walker County has been in 18 of them. |
| National Flood Insurance Program claims, 2005–2025 | 226,065 | #3 of 51 | $14.7 billion paid; 52% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 40% | #14 of 50 | 143,426 policies for 358,865 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 12,919 | #1 of 51 | 1,986 of them 2 inches or larger. Largest stone 7.02 inches, Swisher County, June 2024. |
| Tornadoes, 2016–2025 | 1,119 | #1 of 51 | 152 rated EF2 or stronger; 9,617 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 51 | #8 of 51 | Largest: magnitude 5.4, Coalson Draw, Texas, November 16, 2022. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Texas.
The property risks that matter in Texas
Texas lets most private employers opt out of workers' compensation (non-subscribers), and the 2021 winter storm caused widespread frozen-pipe losses.
Wind from tropical storms is the defining property risk along the Texas coast. Ask whether your policy uses a named-storm deductible, how it is triggered, and whether roof upgrades or shutters earn a mitigation credit.
Hail is one of the most frequent property claims in Texas. Read how your policy settles roof claims: some pay replacement cost, others pay actual cash value on roofs past a certain age, and cosmetic-damage exclusions are increasingly common. Impact-resistant (Class 4) shingles may earn a discount.
Standard homeowners and renters policies exclude flood. In Texas, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.
Worth knowing in Texas
Texas lets most private employers opt out of workers' compensation entirely, so business owners there decide between workers' comp and going without it as a non-subscriber.
Texas coverage checkup
- Compare your auto liability limits with the Texas minimum of 30/60/25 and with your actual assets.
- Find your hurricane or named-storm deductible in dollars and set aside that amount.
- Read the roof settlement clause and ask whether Class 4 impact-resistant shingles earn a credit.
- Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
- Add water backup coverage and keep heat on when the home is empty.
- Keep a current home inventory stored off-site.
Texas’s insurance regulator
Insurance in Texas is regulated by the Texas Department of Insurance, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds a Texas nonresident insurance producer license (#3567547, NPN 21022298) and places Texas policies directly.
Common questions
What is the minimum car insurance in Texas?
Texas requires at least $30,000 per injured person, $60,000 per accident for injuries, and $25,000 for property damage. Every policy includes PIP unless you reject it in writing, and insurers must offer uninsured/underinsured motorist coverage, which you must also reject in writing if you don't want it.
Is Texas a no-fault state?
Texas is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage. The Texas Department of Insurance describes Texas as an at-fault state.
Do employers in Texas need workers’ comp?
Most private Texas employers may choose whether to carry workers' compensation; employers that opt out are called non-subscribers and must notify their employees and the Division of Workers' Compensation. Public employers must have coverage, and certain building or construction contractors working for governmental entities must cover each employee on the public project.
What can a Texas homeowner do if no insurer will write the house?
The Texas FAIR Plan Association sells basic home insurance to people turned down by standard insurers, and TWIA sells wind and hail coverage to coastal residents (including parts of Harris County on Galveston Bay), where hurricanes are the main threat. TWIA coverage can't be bought while a hurricane is in the Gulf.
Does Texas homeowners insurance cover hurricanes?
Wind damage from hurricanes is generally covered, often subject to a separate hurricane deductible. Storm-surge flooding requires flood insurance.
Will my Texas policy pay to replace a hail-damaged roof?
It depends on the roof settlement terms. Some policies pay replacement cost; others pay actual cash value on older roofs or exclude cosmetic damage.
More answers: Texas homeowners insurance guide Texas renters insurance and security deposit guide Texas small business insurance requirements Texas life insurance consumer guide Dallas home and auto insurance guide Austin home and auto insurance guide Fort Worth home and auto insurance guide El Paso home and auto insurance guide Lubbock home and auto insurance guide Laredo home and auto insurance guide Amarillo home and auto insurance guide Guía de seguro de inquilinos y depósito de garantía en Texas Requisitos de seguro para pequeñas empresas en Texas Guía de seguro de vida para consumidores en Texas Guía de riesgo de inundación y NFIP en Texas Houston home and auto insurance guide Guía de seguro de hogar y auto en Dallas Guía de seguro de hogar y auto en El Paso Guía de seguro de hogar y auto en Corpus Christi Guía de seguro de hogar y auto en Houston
Related guides: Corpus Christi home and auto insurance guide
Sources
- Texas: Minimum car insurance
- Texas: Workers’ compensation
- Texas: Home insurer of last resort
- Texas: Contractor licensing
- Texas: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.