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7 things you need to know before driving around Texas
The Texas Government requires all drivers to have an auto insurance policy that comes with a certain amount of liability coverage. This liability coverage is of a base or minimum amount and is utilized to stay protected in the event of an accident. While Texas liability insurance does not protect the guilt or his vehicle, it is a useful cover to meet the damages caused to the other driver’s life or property.
The liability insurance, therefore, is bought to cover the financial liabilities stemming from bodily injuries and property damages. Since Texas liability insurance covers your financial obligations, it is often sold as financial responsibility insurance. A proof that your vehicle is insured and registered by the Texas government is what you require to be covered under the Texas liability insurance policy. Insuring and registering is not all, this proof of insurance needs to be carried along with you to be able to drive around Texas safely.
Here are a few things you must know about Texas liability insurance or financial liability insurance.
What are the norms of Texas liability insurance?
When a client buys auto insurance, she/he needs to abide by the Texas financial responsibility law that requires them to purchase or maintain a minimum liability limit.
Currently, the Texas minimum liability insurance for an injured person is $30,000, the total amount per accident being $60,000. Additionally, $25,000 is the amount that is fixed for property damage per accident.
The basic cover limit is called 30/60/25 or 30,000/60,000/25,000 coverage.
What are the expenses covered under Texas liability insurance?
Medical expenses
Hospital charges
Rehabilitative care
Lost income
Pain and suffering
Property damage costs to the victim
Is the basic Texas liability insurance coverage enough to protect you in an accident?
Since the car prices and the cost of health care are both considerably high, the minimum liability may not be enough to cover the other driver’s cost during an accident.
Often many drivers choose to sue the other party just to collect the difference.
It is always prudent to buy more than the minimum limit so that you stay financially protected.
When do you need to show proof of Texas minimum liability insurance?
The Texas law requires the citizens to furnish documentary proofs of the financial responsibility under select circumstances.
Minimum liability insurance needs to be produced while registering a vehicle.
When a driver’s license is issued, you may need to prove your financial responsibility.
You may also need to produce the document at the request of a law enforcement officer.
What are the ways to ensure Texas liability insurance requirements are met?
Insurance companies are required to produce a weekly account to make sure that all drivers abide by the financial responsibility requirement.
This weekly report contains the Vehicle Identification Number or VIN of the vehicles insured under an active liability insurance policy.
Who needs to purchase SR-22 or SR-22A?
SR-22 or SR-22 A is a certificate that an insurance company issues to the Texas Department of Public safety proving that you purchased liability insurance.
Often people convicted of a few offenses require purchasing these certificates to retain their license.
People guilty of a drug offense, driving under influence, driving with invalid or suspended licenses may need to purchase a certificate.
What are the penalties for not complying with Texas liability insurance requirements?
Failure to comply with financial responsibilities laid by the Texas government may lead to suspension of license and payment of hefty fines.
Those who fail to maintain Texas liability insurance requirement need to pay a surcharge of $250 per year. In the event of an offense, this surcharge is paid for three years in addition to other expenses associated with the offense.
Often, people convicted of an offense may have to file or purchase for an SR-22 or SR-22A from the insurance company to be able to reinstate their driver’s license.
