How to think about auto insurance in Texas: what to buy and why (2026)
For most Texas drivers, $300K/$300K liability is the right starting point. The math: most carriers price the jump from $100K/$300K to $300K/$300K at $8-18 a month, and the protection difference is real. A serious bodily-injury claim crosses $100K fast.
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How to think about this
Texas is a file-and-use state with one of the most carrier-competitive auto markets in the country. The Texas Department of Insurance doesn’t pre-approve rate changes — carriers file and the rates are effective immediately unless TDI later orders a hearing.
The threshold to think harder is $500K in assets. Past that point, $300K/$300K plus a $1M umbrella is the standard package; the umbrella runs $150-300 a year and requires you to first carry $250K/$500K underlying. Below $500K in assets, $300K/$300K alone is plenty.
Texas-specific things to know
- File-and-use means rate changes are effective on filing, not after regulator approval.
- Hailstorm losses on the Caprock + I-35 corridor drive home rates; Houston/Galveston wind exposure drives coastal rates.
- Texas requires only $30K/$60K/$25K auto liability — well below the national norm of $50K/$100K.
When the recommendation changes
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Below $50K in assets: minimum required limits are fine.
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$500K-$2M in assets: $300K/$300K + $1M umbrella.
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Above $2M in assets: talk to a high-net-worth broker about $2M-$5M umbrella.
Texas auto carrier baselines (reference)
| Carrier | Filed Rate | Effective | Source |
|---|---|---|---|
| Geico | $142/mo | 2026-01-15 | State DOI |
| State Farm | $166/mo | 2026-02-01 | State DOI |
Methodology: /methodology/rate-authority/
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