Texas Car Insurance Laws and Requirements


State of TexasThe Lone Star State is one of the majority of states that follows the Financial Responsibility Law; this law is basically defined as requiring motorists to have compensation set in place to pay for property damage or bodily injury that they may cause as a result of a traffic accident. Most TX motorists choose to satisfy these requirements by purchasing an auto insurance policy.

Beginning January 1, 2011, the state of Texas began requiring the minimum limits of coverage; in order to be in compliance if choosing to buy a policy Texans must purchase Liability coverage consisting of limits of $30,000 for the bodily injury to one person, $60,000 for bodily injury per accident and $25,000 for property damage, commonly abbreviated as 30/60/25. This was an increase from 25/50/25. These limits will cover bodily injury and property damage that the insured has caused with their vehicle up to the policy limits; this does not pay for any injuries or property damage sustained by the policyholder.

How the Texas Auto Insurance Law is Enforced

The state is very strict when it comes to their state's financial responsibility law and penalties can become quite severe. Following a motorist's first conviction of driving without TX car insurance they will be issued a fine between $175 and $350. Subsequent convictions can be much harsher and could lead to a fine between $350 and $1,000, the suspension of driving privileges and even the impoundment of the vehicle.

Motorists should carry proof of coverage at all times which can be needed under many circumstances; this proof will be in the form of an identification card which will be sent to the insured by their carrier once a policy is purchased. Vehicle operators will need to show this card if asked to do so by a law enforcement officer, have an accident, at the time of obtain or renewing a vehicle's registration or a driver's license and when getting an automobile inspected.
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The state takes uninsured motorists very seriously and their is practically no way to get around driving without coverage. An insurance verification system named "TexasSure" has been developed which allows law enforcement, county tax officials and vehicle inspectors to electronically verify that the vehicle is insured. This system in intended to eliminate the ability to furnish fake proof of coverage at a traffic stop or cancel policies once used to register an automobile or for a vehicle inspection; if pulled over, the officer will be able to verify whether or not the provided identification card is real.


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