When it comes to protecting yourself on the road, few topics are more important than understanding Texas minimum insurance requirements. Whether you drive a personal vehicle or operate a commercial truck, state and federal laws require specific levels of insurance coverage.
Unfortunately, truck accidents in Texas are more common than many realize — and when they happen, the financial impact can be devastating. Knowing your rights after a truck accident, and understanding the insurance laws that apply to trucking companies, can make the difference between fair compensation and financial ruin.
The Texas truck accident attorneys at Orange Law Firm in Houston explain what you need to know about minimum insurance coverage, trucking company responsibilities, and the impact of House Bill 19 on commercial motor vehicle claims.
The Basics: What Is “Full Coverage” in Texas?
Many drivers believe they have “full coverage,” but in Texas, no such term exists in the law. “Full coverage” typically refers to a combination of policies, including:
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist protection
For commercial truck operators, the requirements are much more complex. Trucking companies in Texas must comply with both state and federal insurance laws, depending on where and what they transport.
Why Texas Minimum Insurance Requirements Matter
Texas law requires financial responsibility for all drivers. For personal and commercial vehicles alike, this ensures accident victims can recover compensation for injuries and property damage.
When a collision involves a large truck or commercial vehicle, the stakes are far higher. A single 18-wheeler crash can result in catastrophic injuries, multiple fatalities, and millions in damages.
The minimum insurance requirements exist to protect victims from bearing the burden of these losses — but trucking companies and insurers often fight aggressively to limit payouts. That’s why the Texas minimum insurance requirements are so important. They ensure that every commercial truck on Texas roads has some level of financial responsibility in the event of an accident. But knowing the minimums isn’t enough — you also need to understand how these laws are enforced and what coverage types truly apply after a crash.
The Myth of “Full Coverage” in Texas
Many drivers, including some trucking company employees, assume they have “full coverage.” In reality, “full coverage” is not a legal term and has no specific definition under Texas law.
Instead, the phrase refers to a combination of coverages, which may include:
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist protection
While personal drivers can sometimes rely on these bundled policies, commercial trucking operations are subject to far stricter and more expensive insurance requirements due to the potential scale of damage they can cause.
An 18-wheeler traveling at highway speed can weigh more than 80,000 pounds — nearly 20 times heavier than a passenger car. The result? Even a “minor” collision can lead to serious injuries and seven-figure damages.
Texas Minimum Auto Insurance Requirements
For most Texas drivers, the state’s 30/60/25 rule applies. This means:
- $30,000 in bodily injury coverage per injured person
- $60,000 in total bodily injury coverage per accident
- $25,000 in property damage coverage
While this might be sufficient for fender-benders, these limits barely make a dent in major truck accident claims, where hospital bills, surgeries, and rehabilitation alone can exceed $250,000.
For that reason, commercial trucking companies must carry much higher minimums — governed by both Texas law and federal regulations under the Federal Motor Carrier Safety Administration (FMCSA).
Minimum Insurance Requirements for Trucking Companies in Texas
Trucking companies are considered motor carriers, and they must show proof of commercial automobile liability insurance for every registered vehicle in their fleet.
State-Level Coverage (Intrastate)
If the trucking company operates only within Texas, the Texas Department of Insurance (TDI) sets the minimum requirement at:
- $500,000 in liability coverage per vehicle.
Federal Coverage (Interstate)
If the company’s trucks cross state lines, FMCSA coverage laws apply. The required amounts depend on the weight of the truck and the type of cargo it carries:
| Type of Cargo | Minimum Insurance Requirement |
|---|---|
| Non-hazardous materials over 10,001 lbs | $750,000 |
| Oil or hopper-type materials | $1,000,000 |
| Hazardous materials | $5,000,000 |
To operate legally, these carriers must file proof of financial responsibility through either:
- Liability insurance, or
- A surety bond (Form MCS-82).
Trucking companies must also maintain documentation known as:
- Form MCS-90 – Proof of insurance certificate.
- Form MCS-82 – Proof of surety bond coverage.
These documents must be kept both in the vehicle and at the company’s main office for inspection at any time.
Failure to maintain proof of insurance can result in severe fines, license revocation, or even suspension of interstate operating authority.
Commercial Insurance Coverage Options
While liability insurance is the foundation of compliance, responsible motor carriers typically carry additional insurance types to mitigate broader risks.
Common forms of commercial truck insurance in Texas include:
- General Liability Insurance – Covers third-party injuries or property damage caused by company operations.
- Extended Liability Coverage – Provides higher coverage limits for catastrophic losses.
- Eroding (Defense-Within-Limits) Policy – Allows legal fees to be deducted from the total coverage amount.
- Self-Insured Retention Policy – Requires the trucking company to pay a large amount (often $250,000) before coverage applies.
Trucking companies must also maintain employee protection coverage, such as:
- $300,000 in medical expense coverage (minimum of 104 weeks)
- $100,000 for accidental death and dismemberment
- 70% of the employee’s pre-injury income for 104 weeks
- $500 maximum weekly benefit
Even with these laws in place, insurance companies often resist paying full compensation — especially when multiple carriers or corporate entities are involved in a single crash.
How Negligence and Liability Affect Insurance Payouts
Under Texas law, truck accident victims must prove negligence to recover damages. Negligence means that the driver or trucking company failed to act with reasonable care, resulting in injury or loss.
A Texas truck accident attorney typically proves negligence by demonstrating that:
- The defendant owed a legal duty to operate safely.
- That duty was breached.
- The breach directly caused the accident.
- The victim suffered financial or physical harm.
Examples of Trucking Negligence
- Driving beyond the FMCSA’s hours-of-service limits (fatigue).
- Improper maintenance or ignoring inspection requirements.
- Overloading cargo beyond legal weight limits.
- Distracted or impaired driving.
- Hiring unqualified or unlicensed drivers.
When negligence is proven, the victim can recover damages such as:
- Medical expenses
- Lost wages and diminished earning capacity
- Pain and suffering
- Property damage
- Punitive damages (in egregious cases of misconduct)
The Orange Law team in Houston meticulously investigates each crash, obtaining driver logs, black-box data, and maintenance records to identify every liable party — not just the driver.
How Insurance Companies Avoid Paying Fair Compensation
After a truck crash, victims often feel overwhelmed — and insurers exploit this vulnerability. Some of the most common tactics include:
- Blaming the victim under Texas’ modified comparative fault rule, which reduces payouts if you’re even partially at fault.
- Delaying investigations to pressure victims into early settlements.
- Requesting recorded statements designed to undermine claims.
- Disputing medical treatment as “unnecessary” or “excessive.”
- Offering lowball settlements that fail to cover long-term care.
An experienced Texas truck accident attorney recognizes these tactics and fights to ensure victims receive the full value of their claim.
Truck Accident Risk Management and Safety Compliance
Prevention remains the best form of protection. The Texas Department of Transportation (TxDOT) and FMCSA both emphasize strict compliance with safety standards to reduce accidents.
Key Safety Practices
- Routine maintenance and brake inspections.
- Compliance with hours-of-service (HOS) regulations to prevent fatigue.
- Mandatory drug and alcohol testing.
- Proper cargo loading and securement.
- Onboard monitoring systems for speed and braking.
Orange Law recommends that both commercial carriers and independent drivers regularly review their safety programs and insurance compliance to avoid future liability.
What To Do After a Truck Accident in Texas
If you’re involved in a truck crash, your actions immediately after the incident can make a significant difference in your case outcome.
Step 1: Seek medical attention immediately.
Step 2: Contact law enforcement and file a police report.
Step 3: Gather evidence — photos, videos, witness contact info.
Step 4: Avoid giving recorded statements to insurance adjusters.
Step 5: Call a Texas truck accident attorney right away.
The sooner an attorney gets involved, the faster evidence can be preserved, insurance coverage identified, and a strong case strategy developed.
Call 713-885-9787 for a free, no-obligation consultation now!
