Texas Auto Insurance Law
Most states have some version of a financial responsibility law for owners of motor vehicles and Texas is no different. In order to obey the law and protect your financial interests in the event that you have an accident that is deemed to be your fault, it is critical to understand the legal requirements of the Texas Financial Responsibility law.
The state of Texas has adopted minimum requirements that require all vehicle owners to have minimum levels of liability coverage in place to pay for bodily injury and property damage claims arising from an accident that is your fault. These coverage minimums – usually expressed in terms of 25/50/25 – will allow you to comply with the law. Here is what this means and how it affects you:
Bodily Injury Liability – This coverage will provide for claim payment for any at-fault accident that you have. If the other vehicle has only one occupant, your liability policy will pay up to $25,000 for medical expenses incurred by the occupant of the other vehicle. In the event that there are multiple people in the other vehicle, the amount that can be paid tops out at $50,000 per accident.
Property Damage Liability – This coverage will provide funds needed to compensate the owner of any vehicle with which you have an accident that is your fault. The minimum limit is $25,000 and also includes any damage to other property (for example, a mailbox or other private property) from a single accident.
It’s important to note that on January 1, 2011, the minimum requirement for Bodily Injury Liability will increase to $30,000 for a single accident victim, with a minimum cap of $60,000 regardless of how many people are in the other vehicle.
Because vehicle repair costs and healthcare costs are rising rapidly, many people opt to purchase liability coverage in excess of the minimum amounts required by the Texas Department of Insurance. If you don’t have sufficient liability insurance in place to cover the actual medical and property damage expenses incurred by the victims of an auto accident of which you are at fault, there is a strong likelihood that you will be sued for the balance.
Other coverage that is highly recommended is uninsured/under insured coverage. This will help to pay for your expenses in the event that you’re involved in an accident with a motorist that either has no liability insurance coverage or who has coverage insufficient to pay for your damages or medical expenses.
All motorists need to have at least the minimum auto insurance required by law to ensure that they are compliant with Texas Financial Responsibility laws and to protect their interests in the event of an at-fault accident.
Complying with the law is easy; getting a quick quote that will allow you to fulfill your obligations under the law is even easier. By filling out a free online quote request form, we can shop the market for the most economical auto insurance policy that will allow you to comply with the law – without breaking your budget.