Texas Auto Insurance Regulation Report: SB1674 Minimum Liability Reform (January 2026)
Market Disclaimer: This report uses real-time actuarial filings from FSRA (Ontario), Texas Department of Insurance, and FL-OIR for the April 2026 period. It does not constitute legal or licensed insurance advice.
Texas Senate Bill 1674 increased minimum auto insurance liability requirements to $50,000 per person, $100,000 per accident, and $40,000 in property damage effective January 1, 2026, replacing the previous $30,000 per person, $60,000 per accident, and $25,000 property damage minimums. Texas drivers who have not reviewed their declarations page since before January 1, 2026 may be carrying coverage below the new statutory minimums. TX DOI compliance audits began in Q1 2026. This report is sourced from TX DOI Bulletin B-0001-26 and TX DOI Guidance Circular GC-25-11.
| Effective Date | January 1, 2026 |
|---|---|
| BI Minimum Per Person | $50,000 |
| BI Minimum Per Accident | $100,000 |
| Property Damage Minimum | $40,000 |
| Previous BI Minimum | $30,000 / $60,000 |
| Previous PD Minimum | $25,000 |
| Regulator | TX DOI |
| Legislative Basis | SB1674, 89th Texas Legislature |
How Texas Carriers Repriced the SB1674 Exposure
Large national carriers filed rate amendments with the TX DOI in September and October 2025 ahead of the January 1, 2026 effective date. TX DOI Rate Order RO-25-09 documents the approved carrier rate filing amendments. The actuarial repricing has been non-uniform: carriers that used the ISO advisory loss cost system for minimum uplift produced less precise pricing than carriers with full SB1674 actuarial modelling. The market-level premium impact has been concentrated in the below-standard coverage segment of Texas drivers who were previously purchasing only the statutory minimum liability coverage.
What Texas Drivers Must Verify
Every Texas driver must confirm their current declarations page shows bodily injury limits of at least $50,000 per person and $100,000 per accident, and property damage limits of at least $40,000. Declarations pages showing the previous $30,000 and $60,000 BI limits or the $25,000 PD limit require immediate carrier contact to confirm that the automatic minimum elevation occurred under TX DOI Bulletin B-0001-26 compliance requirements.