Key points
- Texas minimum auto liability is 30/60/25 — far below what most contractors need.
- Vehicles over 26,000 lbs, among others, generally require TxDMV motor carrier registration and at least $500,000 in liability.
- Interstate and for-hire operations can trigger federal requirements. Confirm current rules with the agency.
This is a general overview, not legal or regulatory advice. Requirements change and exceptions apply. Confirm current requirements with the Texas Department of Motor Vehicles and, for interstate operations, the Federal Motor Carrier Safety Administration.
Texas minimum auto liability
Texas financial responsibility law requires minimum liability coverage of $30,000 per injured person, $60,000 per accident for bodily injury, and $25,000 for property damage — commonly written 30/60/25. These are legal minimums for operating a vehicle. They are rarely appropriate for a business with commercial vehicles and are well below typical contract requirements.
TxDMV motor carrier registration
Texas requires motor carrier registration with TxDMV for both private and for-hire carriers operating certain vehicles intrastate, including:
- Commercial motor vehicles with a gross weight, registered weight, or gross weight rating over 26,000 pounds
- Vehicles transporting hazardous materials in quantities requiring placards
- Vehicles designed to carry more than 15 passengers including the driver
- Household goods transported for compensation, regardless of weight
Carriers registering with TxDMV must first obtain a USDOT number. For all other private or for-hire carriers operating vehicles over 26,000 pounds, the TxDMV minimum liability amount is $500,000, with higher minimums for certain hazardous materials and passenger operations. Insurance companies generally file proof of coverage with TxDMV on the carrier’s behalf.
For many contractors, this applies to a few heavier units — dump trucks, larger flatbeds, or straight trucks — even though most of the fleet is lighter pickups and vans.
Federal requirements
Operations that cross state lines, or that haul property for others, may fall under federal rules administered by FMCSA. For-hire interstate carriers of general freight in vehicles over 10,000 pounds generally must carry at least $750,000 in liability, with higher amounts for certain hazardous materials, and their policies typically carry the MCS-90 endorsement. Private carriers hauling their own non-hazardous goods are treated differently. Federal requirements are specific to the operation, so confirm them directly with FMCSA.
Minimums versus what you need
Regulatory minimums are floors, not recommendations. Your contracts, the value of your business, and the realistic cost of a serious accident involving a heavy work truck should determine your limits. Many established contractors carry $1,000,000 in primary auto liability with an umbrella above it.