Texas Financial Responsibility Law: Minimum Auto Liability Insurance Limits have Increased
(April 2013) Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in an accident. It doesn’t pay to repair or replace your car or for your injuries. Consider buying other types of coverage – such as personal injury protection or medical payments, collision, and comprehensive (other than collision) – to pay your expenses. Financial Responsibility Most drivers buy liability insurance to meet the state’s financial responsibility law. You must buy at least the minimum amount of coverage. The minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage. Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the costs you’re responsible for if you’re at fault in an accident. You must pay the costs above your insurance limits. Consider buying more than the basic limits to protect yourself financially. Breaking the Law There are penalties for breaking the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Additional convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your car. When you get auto insurance, your insurance company will send you a proof-of-insurance card. You will need this card to prove that you have insurance when you:
TexasSure TexasSure is a verification system that tells law enforcement and county tax officials if you or the car you’re driving has auto liability insurance. Police can use TexasSure when they pull you over to check if you or the car you’re driving is insured. TexasSure helps reduce the number of uninsured vehicles in Texas. An estimated 4 million vehicles – one in five – on Texas roads are uninsured. TexasSure also helps prevent the use of counterfeit proof of insurance cards and helps stop people from getting insurance so that they can get their car inspected or registered, and then canceling their insurance afterward. For more information, visit the TexasSure website at www.TexasSure.com. Buying Auto Insurance Call or email an insurance company or agent in your area to buy auto insurance. In addition to liability insurance required by law, you can also purchase these additional coverages:
- are asked for it by a law enforcement officer
- have an accident
- register your car or renew its registration
- get or renew your driver’s license
- get your car inspected.
TexasSure TexasSure is a verification system that tells law enforcement and county tax officials if you or the car you’re driving has auto liability insurance. Police can use TexasSure when they pull you over to check if you or the car you’re driving is insured. TexasSure helps reduce the number of uninsured vehicles in Texas. An estimated 4 million vehicles – one in five – on Texas roads are uninsured. TexasSure also helps prevent the use of counterfeit proof of insurance cards and helps stop people from getting insurance so that they can get their car inspected or registered, and then canceling their insurance afterward. For more information, visit the TexasSure website at www.TexasSure.com. Buying Auto Insurance Call or email an insurance company or agent in your area to buy auto insurance. In addition to liability insurance required by law, you can also purchase these additional coverages:
- collision and comprehensive
- medical payments
- personal injury protection
- uninsured/underinsured motorist
- towing and labor