The minimum motor vehicle liability insurance coverage requirement for bodily injury or death or for damage to or destruction of property of others

Texas House Bill 4178, introduced in 2025, aimed to increase the minimum required amounts of motor vehicle liability insurance in Texas. The proposed changes were: $50,000 for injury or death of one person (up from $30,000), $100,000 for injury or death of two or more persons in one accident (up from $60,000), and $40,000 for property damage (up from $25,000). These new minimums were set to take effect on January 1, 2026. However, the bill was referred to the House Insurance Committee on March 31, 2025, and did not progress further, effectively rendering it inactive.

While specific media coverage on HB4178 is limited, proponents of similar legislation argue that increasing minimum liability insurance requirements better reflects current economic conditions and provides greater financial protection for accident victims. They contend that higher coverage limits can help ensure that medical expenses and property damages are adequately covered, reducing the financial burden on individuals involved in accidents.

Opponents of increasing minimum liability insurance requirements often express concerns that higher premiums could disproportionately affect low-income drivers, potentially leading to an increase in uninsured motorists. They argue that the added financial strain may make it more difficult for some individuals to afford the necessary insurance coverage, thereby exacerbating issues related to uninsured driving.