Texas Adopts Strict Auto Insurance Law |
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The State of Texas is adopting new auto insurance laws currently in force in other states such as California in order to reduce the number of uninsured drivers. The new law adopts technology to allow law enforcement officers to run automobile license plates and be able to find out if a vehicle is insured.
 The State of Texas estimates that 15-20% of all automobiles on the road are uninsured. This new law is designed to reduce those numbers and to reduce the number of false proof of insurance being presented as valid proof. The new law requires auto insurance companies to directly submit electronic proof of insurance to the Department of Motor Vehicles. The proof of insurance is then entered into a database which is accessible by law officers. This new auto insurance law will be implemented early 2008 which has shown success in states currently implementing similar laws.
Currently, the State of Texas requires that all drivers maintain minimum liability coverage of $20,000 bodily injury coverage per person, $40,000 total bodily injury per accident and $15,000 property damage, which includes automobile damages, commonly referred to as 20/40/15. As of April 1st, 2008, those laws have been amended which brings the minimum auto insurance liability coverage requirement to $25,000 bodily injury coverage per person, $50,000 total bodily injury per accident and $15,000 property damage, abbreviated as 25/50/15. Most states hold a lower liability coverage requirement such as California which is currently 15/30/05.
To find out more information of the State of Texas's To find out more about the Texas Financial Responsibility Verification Program, visit the Texas Department of Insurance Resource Page at www.tdi.state.tx.us/auto/frvp.html.
Visit OnlineAutoInsurance.com's resource page for online auto insurance quotes in Texas.
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