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Texas State Car Insurance Legal Requirements

Every citizen of Texas has to prove his financial responsibility in case of an accident. According to a survey conducted by few insurance companies, it has been proved that about 20% of the drivers are uninsured. In order to protect every citizen, it has been made mandatory to carry minimum liability coverage insurance that will help cover all the expenses that rose due to an accident.

Ways to Establish Financial Responsibility

As it has been made mandatory, you may be out there looking out for the best insurance coverage policy. Many people purchase an auto liability policy to protect themselves. Though this is also one of the ways, you can well consider from the following different options:

1. Obtain a security bond from a recognized insurance agent
2. Obtain a security bond from the state’s treasurer by paying an amount of $50,000.
3. Deposit of $55,000 at the local county judge.
4. Deposit of $55,000 at the local county comptroller.
5. A self insured coverage policy which will only be issued by the department of motor vehicles if and only if you have 26 vehicles registered under your name.

Texas Liability Insurance Requirements for Private Passenger Vehicles

The liability coverage you would be planning to take should meet the following minimum requirements as stated by the state government’s laws. They are:

1. $25,000 towards injuries caused to a single person for a single accident.
2. $50,000 towards both injury and death for two persons.
3. $25,000 towards damages caused to property.

Always remember to keep a copy of your insurance card and financial responsibility proof at all times in your vehicle. You may be asked to produce them by the law enforcement officer at any point of time.

The coverage amount that is states above is the minimum amount that has to be paid. There is no limitation to the maximum amount as of now. If you can afford to apply for insurance, you can well do so which thereby increases the protection of you and your vehicle. You can apply to insurance like towing away insurance, collision insurance etc.

Proof of Insurance and Financial Responsibility

Efforts have been made to track down the insurance policies electronically easily. Department of motor vehicles and lawmakers have come forward to join for the TexasSure, a program which will help verify insurance policies electronically.

Penalties for Failure to Maintain Financial Responsibility

If you are driving your vehicle without your minimum liability coverage and financial responsibility proof, you are to follow the suit for a complete year suspension on your driving license and registration of the car. Apart from the suspension you must also pay a penalty of $250 towards the fine. If you plan to reinstate your suspension, you need to provide the insurance as well as financial responsibility papers to the concerned officer and renewal your registration.

For further more details you can contact the authorities at

http://www.txdps.state.tx.us/

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