In Texas, it is illegal to drive a vehicle unless you meet the state’s financial responsibility requirements. This means if you are driving a personal use vehicle, you will need auto liability insurance. Liability insurance covers the cost to others if you are in an accident for which you are at fault. Texas requires drivers to have liability insurance of at least the following amounts.

Only liability insurance is required - in these amounts:

• $30,000 for bodily injury or death to one person per accident
• $60,000 for bodily injury or death to two or more persons per accident
• $25,000 for damage or destruction to other property in an accident

While purchasing liability insurance that meets the minimum required amounts is all that is legally required, it is wise to consider purchasing more than the minimum required amounts. If you are in an accident where you are at fault you will be liable for the cost of the other person’s medical bills, lost wages, pain and suffering and personal property damage. The cost of these expenses could easily exceed minimum liability limits.

Many experts advise their clients to purchase at least $500,000 in liability insurance. If you have been convicted of a DUI, you will likely be required to obtain an SR22 Certificate through your insurance carrier as well.

Collision auto insurance (not required)

Collision insurance helps protect you for the repair costs to your vehicle in the event of an auto accident when someone else is at fault. Be sure to choose a coverage amount that will cover the total replacement value of your care.

Comprehensive auto insurance (not required)

A comprehensive insurance policy covers any and all vehicle damage that might happen in a car accident. With a comprehensive policy the type of accident does not matter. You will be covered for at-fault accidents; if a tree falls on your car or you hit a cow crossing the road…comprehensive insurance will have you covered.

Proof of Insurance

Texas has a financial responsibility verification program called TexasSure that is aimed at getting uninsured drivers off of its roadways. It is estimated that 20% of all Texas vehicles are uninsured at any given time. The TexasSure program is using the following steps to reduce the amount of uninsured drivers on its roadways.

No vehicle will be allowed to bet registered without proof of insurance.

Insurance companies will be required to give the state's Department of Public Safety insurance, information which will allow it to determine if registered vehicles are insured. If a vehicle is found to be uninsured, the vehicle's registration will be suspended.

In Texas drivers must carry proof of insurance with them whenever they drive. Drivers will have to provide proof of insurance in the following situations.

• When they apply to register their vehicle
• When they are involved in an auto accident
• When a law enforcement officer ask them to provide proof of insurance

Drivers can typically provide proof of insurance with their insurance identification card. The driver’s insurance company must give them an insurance identification card when they purchase or renew their auto insurance. The insurance identification card must have the name of the insured driver, the name of the insurance company, a description of the car and the policy’s effective date and expiration date.

It should be noted that law enforcement officers will now have immediate access to the insurance information on any given vehicle, available to them at all times.

Penalties for Driving without Insurance

Texas takes its financial responsibility laws seriously. The penalties for driving without insurance are severe. The penalties are as follows:

• First time conviction
• A fine of $175 to $350
• Subsequent convictions
• A fine of up $350 to $1,000 plus suspension of your driver’s license and impoundment of your vehicle.
• Offense without a driver’s license: A $2,000 fine or 180 days in jail or both.
• Offense if you cause an accident which results in injuries or death: A fine of up to $4,000, or one year in jail or both.

Purchasing Auto Insurance

Since you are required to purchase auto insurance, you will want to get the best deal possible. You can achieve this goal by using our site to get quotes from numerous insurance companies. You can then compare quotes and coverage’s and select the best coverage’s for the best price.

Resources:
http://www.tdi.texas.gov/auto/frvp.html
http://www.tdi.texas.gov/auto/frvp_agent.html#FAQ4
http://www.tdi.texas.gov/auto/frvp_agent.html