Definition
A Certificate of Self-Insurance refers to an official document issued by the Texas Department of Motor Vehicles (TxDMV) that allows qualifying owners of large fleets to satisfy the state's financial responsibility requirement without purchasing a traditional auto insurance policy. Under Texas Transportation Code §601.124, a business or government entity that owns 25 or more vehicles registered in Texas may apply for self-insured status by demonstrating sufficient financial reserves to pay claims up to the 30/60/25 minimum limits. The certificate does not replace liability exposure — it simply permits the fleet owner to act as its own insurer. Self-insurance is typical for delivery companies, rideshare fleets, municipalities, and large DFW employers with many company vehicles. Individual drivers and small businesses cannot self-insure in Texas and must instead carry a traditional auto policy, surety bond, or cash deposit to satisfy financial responsibility.
Also available in Spanish: Ver en español