The bill, S.B. No. 1674, proposes amendments to the minimum motor vehicle liability insurance coverage requirements in Texas. Specifically, it increases the minimum amounts required for financial responsibility under the Transportation Code, effective January 1, 2026. The new requirements will set the minimum coverage for bodily injury or death of one person in a collision at $50,000 (up from $30,000), for two or more persons at $100,000 (up from $60,000), and for property damage at $40,000 (up from $25,000).

Additionally, the bill stipulates that the amended insurance coverage requirements will only apply to policies that are delivered, issued for delivery, or renewed on or after January 1, 2026. Policies that are delivered, issued for delivery, or renewed before this date will continue to be governed by the previous law. The act is set to take effect on September 1, 2025.

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