How many Texans don't have car insurance?

Approximately 1 in 7 drivers (about 14.5%) in Texas are uninsured, according to recent estimates from the Insurance Research Council.

Key Statistics

• Percentage: Estimates range between 13.8% and 14.5% by standard insurance tracking groups, though some state reports and local studies estimate that up to 20% of vehicles on the road may lack active coverage.
• National Comparison: Texas's uninsured rate closely tracks the U.S. national average, which sits around 15.4%.
• Underinsured Risk: Beyond completely uninsured motorists, industry experts note that roughly 50% of drivers carry only the state minimum limits ($30,000 per person / $60,000 per accident for injuries), which is often inadequate for moderate-to-severe crashes.

Why Drivers Go Uninsured

• Rising Costs: Surging car insurance premiums driven by inflation, higher vehicle repair costs, and severe accidents have made coverage less affordable.
• Financial Strain: Surveys indicate that a vast majority of motorists who drop coverage cite basic economic pressure and high premium costs.

Protection Options

• UM/UIM Coverage: Texas law requires insurance companies to offer Uninsured/Underinsured Motorist (UM/UIM) coverage, which pays for your medical bills, vehicle repairs, and lost wages if an uninsured driver hits you.
• Opting Out: You must reject UM/UIM coverage in writing if you choose not to carry it on your policy. You can review additional guidelines via the Texas Department of Insurance.

Texas has an overall uninsured rate of 16.7%, representing approximately 5.1 million residents.

Breakdown by Group

• Adults (Ages 19–64): 21.6% lack health insurance.
• Children (Under 19): 13.6% lack health insurance.
• National Comparison: Texas ranks first in the nation for its uninsured rate, which is more than double the U.S. average of 8.0%.

You can review ongoing health coverage analyses and find updates through the Texans Care for Children or check policy breakdowns from the Texas Comptroller of Public Accounts.

Texas has the highest uninsured rate in the nation because the state has not expanded Medicaid, many jobs do not offer affordable health plans, and many residents do not realize they qualify for free or low-cost options.

Main Reasons for High Uninsured Rates

• No Medicaid Expansion: Texas is one of the few states that chose not to expand Medicaid under the Affordable Care Act (ACA). This leaves many low-income adults in a "coverage gap" where they earn too much for traditional Medicaid but too little for marketplace subsidies.
• Job-Based Gaps: According to the Texas Medical Association, low- and moderate-wage workers are much less likely to get health insurance through their jobs. Small businesses in Texas also often charge very high prices for family coverage.
• Lack of Awareness: Research shows that over a million uninsured Texans actually qualify for free or heavily subsidized health plans through the ACA marketplace. Many people simply do not know these free options exist or assume they cannot afford them.
• Demographics and Work Status: Nearly 70% of uninsured adults in Texas live in a working family. Young adults, Hispanic residents, and undocumented immigrants (who cannot buy plans on the ACA marketplace) also face much higher rates of being uninsured.
• Medicaid Unwinding: Recent state reviews of Medicaid eligibility after the pandemic ended caused thousands of children and adults to lose public coverage because of paperwork and renewal rules.

As the Texas Comptroller notes, this high uninsured rate drives up local medical costs and increases unpaid emergency room bills for everyone else.

Yes, it is illegal to drive without insurance in Texas Department of Public Safety. State law requires all drivers to maintain financial responsibility, which usually means carrying active liability auto insurance.

Minimum Insurance Requirements

Texas law requires drivers to carry minimum liability limits (known as 30/60/25 coverage):

• $30,000 for bodily injury per person
• $60,000 for total bodily injury per accident
• $25,000 for property damage per accident

Penalties for Driving Without Insurance

Operating a vehicle without coverage is a Class C misdemeanor under the Texas Transportation Code. Consequences include:

• Fines: $175 to $350 for a first offense, and $350 to $1,000 for repeat offenses (plus added court costs and local fees).
• License and Registration Suspension: Subsequent convictions can result in the suspension of your driver’s license and vehicle registration.
• SR-22 Requirement: To reinstate a suspended license, repeat offenders must file and maintain an SR-22 certificate of financial responsibility for two years.
• Vehicle Impoundment: Police can tow and impound your vehicle if you are caught without valid insurance, leaving you responsible for expensive towing and daily storage fees.

Texas has about 5.1 million uninsured residents, representing an overall uninsured rate of 16.7%, which is the highest in the nation.

Key Details

• Adults: About 21.6% of Texas adults aged 19 to 64 lack health insurance.
• Children: About 13.6% of Texas children are uninsured, which is more than double the national average.
• National Rank: Texas ranks 50th in the U.S. for health insurance coverage, holding the highest uninsured rate for both adults and children.
• Demographics Most Affected: Uninsured rates are highest among Hispanic residents, low-income families, young adults aged 26 to 34, and non-citizens.
• Where They Live: Urban areas like Harris County have the largest total number of uninsured people (over 1 million), while several rural counties in the Panhandle and West Texas have the highest percentage rates.