Texas is an at-fault auto state. It adds required offers of PIP and UM/UIM, strict cancellation rules and its own residual market to the standard Personal Auto Policy covered in the national guide. The sources are the Transportation Code, Chapter 601 (financial responsibility) and the Insurance Code, Chapters 551, 1952, 1954 and 2151.

Financial responsibility (Transp. Code 601)

• Minimum liability limits: 30/60/25 (601.072):
  • $30,000 bodily injury per person
  • $60,000 bodily injury per accident
  • $25,000 property damage
• Other ways to show financial responsibility (601.051, 601.121 to 601.124):
  • a surety bond
  • a $55,000 deposit with the comptroller or county judge
  • self-insurance, for owners of more than 25 vehicles
• Proof of insurance (601.053, 601.080):
  • the policy
  • the Texas Liability Insurance Card (28 TAC 5.204), including an image on a phone
  • a binder
• TexasSure verifies coverage electronically (601.451 to 601.454).
• Penalties for driving uninsured (601.191, 601.231):
  • first offense: $175–$350
  • later offenses: $350–$1,000
  • after a second conviction, the license is suspended unless the driver files proof of future responsibility for 2 years. That proof is the insurer's SR-22 certificate filed with DPS (601.083).

Personal injury protection (TIC 1952.151 to 1952.161)

• PIP is included unless a named insured rejects it in writing. The required amount is $2,500 per person.
• What it pays, regardless of fault and of other collateral benefits:
  • medical and funeral expenses
  • part of lost income
  • essential household services
• Expenses must be incurred within 3 years of the accident.
• PIP is paid within 30 days of proof. Late payment brings a 12% penalty, interest and attorney fees.
• No subrogation, except against an at-fault driver who lacked required insurance.
• Excluded: intentional injury, or injury while committing a felony or fleeing police.
• A written rejection carries over to renewals with the same insurer or an affiliate.

Uninsured/underinsured motorist (TIC 1952.101 to 1952.110)

• UM/UIM must be included unless a named insured rejects it in writing.
• Limits: up to the policy's liability limits, and not below the 30/60/25 minimums.
• UIM applies when the at-fault driver's limits are too low.
• A vehicle whose insurer is insolvent counts as uninsured.
• UM property damage carries a $250 deductible (1952.105).
• Hit-and-run requires actual physical contact with the unknown vehicle (1952.104).
• If a vehicle's uninsured status is disputed, the insurer has the burden of proof.
• The insured may choose to collect under collision or UMPD.

Required policy features

• A newly acquired vehicle is covered if the insurer is notified within 20 days (1952.059).
• A repair shop's loaner car is covered on a primary basis (1952.060).
• A spouse stays covered during a separation in contemplation of divorce (1952.056).
• Named driver policies are prohibited except operator's policies. A named driver exclusion must list each excluded driver and be accepted in writing (1952.353).
• The insurer can't limit your choice of repair shop (1952.301, 1952.302).
• Policies under 30 days can't be used to get a license, registration or inspection (1952.054).
• Insurers give the Personal Automobile Insurance Consumer Bill of Rights with each new policy (28 TAC 5.9970).

Cancellation and nonrenewal (TIC 551)

Cancellation

• First 60 days: the insurer may cancel for any reason (551.104(g)).
• After 60 days, only for:
  • nonpayment
  • a fraudulent claim
  • a TDI finding that the coverage is illegal
  • suspension or revocation of a household driver's license or registration. If the named insured accepts an endorsement excluding that driver, the insurer can't cancel.
• Cancellation takes effect no earlier than the 10th day after notice is mailed (551.104).
• The insurer may also cancel on a 12-month anniversary with 60 days' notice.

Nonrenewal

• 60 days' notice, or the insurer must renew (551.105).
• An insurer can't nonrenew solely because of age (551.106).
• A policy written for less than a year must be renewed, except on a 12-month anniversary.
• An insurer may not renew if the insured refused to cooperate in defending a liability claim (551.1053).

Reinstatement: if payment arrives within 60 days of cancellation, the insurer may reinstate. There's no coverage for the lapse period (551.106).

Residual market and rideshare

• The Texas Automobile Insurance Plan Association (TAIPA) assigns drivers rejected by at least two insurers. All auto liability insurers must be members (2151.051, 2151.102).
• Transportation network companies (TIC 1954):

The TNC must warn drivers that their personal policy may not cover them.

Common exam traps

• Limits are 30/60/25.
• PIP ($2,500) and UM/UIM are included unless rejected in writing.
• UMPD deductible: $250. Hit-and-run requires physical contact.
• Cancellation after 60 days is limited, with 10 days' notice. Nonrenewal needs 60 days' notice.
• Named driver policies are banned except operator's policies.
• TAIPA eligibility: two rejections.