According to the Texas Department of Insurance up until March 31, 2008, Texas law required you to have auto liability insurance of $20,000 per injured person, up to a total of $40,000 for everyone hurt in an accident, and $15,000 for property damage. This basic liability insurance coverage is called 20/40/15 coverage.

Effective April 1, 2008, the minimum coverage amount required by the state's financial responsibility law increased to $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage. This new basic coverage is referred to as 25/50/25.

The TX DOI goes on to say that if your vehicle has a lien holder attached to it, thus you still owe money on your car, your lender requires you to also carry collision and comprehensive coverage above and beyond the minimum liability coverages.

So it is not really the state that is requiring full coverage be carried on the vehicle you are paying on, it is the financial institute that has interest in the vehicle that typically mandates what insurance you have on the vehicle. Collision and comprehensive on a vehicle helps to protect their investment, the vehicle.

For a quote on comprehensive and collision coverages or the required liability minimums for Texas auto insurance start here.