The state of Texas only requires a certain amount of Liability coverages, not full coverage on vehicles. If you finance a vehicle such as a motorcycle than your lien holder is the one that will dictate what "full coverage" you must have on the bike until you pay off your loan and have a clear title in your own name.

Texas states laws requires that all motor vehicle operators show proof of Liability insurance when the vehicle is registered or inspected, or when getting an operator license.

You must have at least the minimum amount of Liability coverage required by the state’s financial responsibility law. The current minimum liability limits are $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage per accident. This basic coverage is called “25/50/25” coverage.

When you finance a motorcycle your paperwork from your lien holder will usually tell you what insurance they require you to carry on the bike. Typically this is at least the state minimum Liability coverages and physical damage coverages of Collision and Comprehensive; this is what most refer to as full coverage.

The state does not mandate full coverage; your financing company does so you would have to find out from your lien holder, if you are paying off a motorcycle, exactly what insurance you must carry on the vehicle. Texas only requires the Liability limits of 25/50/25 be kept on the vehicle to keep your registration valid and to not be ticketed for driving without insurance so as you noted if you own the motorcycle on your own you could keep just these basic coverages on it.

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