Complying with Texas Auto Insurance Laws

Vehicle coverage is intended to ensure protection and compensation to the victims of automobile accidents. Therefore, like most other states, Texas also requires all drivers and owners of vehicles to carry the minimum limits of liability in order to drive within the state. This is the minimum amount of vehicle coverage that everyone has to carry under any circumstance while operating automobiles. The liability policy has two parts- bodily injury and property damage.

The minimum limits of liability coverage in the Lone Star State are 25/50/25, which translates as follows:

• $25,000 bodily injury for one person in a single accident
• $50,000 bodily injury total per accident
• $25,000 property damage per accident

The above mentioned is the absolute minimal that each individual owner/driver has to carry. However, one can always carry additional protection i.e. policies over and above the minimum limit based on one’s individual risk perception and needs. Also, a liability policy covers only the victim of the automobile accident and not the policyholder. The person who actually committed the accident can’t derive any benefit out of the prescribed limits of coverage. Therefore, one should also think of additional coverage such as comprehensive coverage and collision coverage that can cover the damages of the policyholder's automobile.

Driving without proper protection is not only against the law but can also cause financial hardship and a lot of problems if a traffic accident occurs. At any given time, there are at least 20 percent of the owners/drivers who are uninsured and on the road. Therefore, authorities have made it mandatory for all to carry proof of coverage while driving. Also, the vehicle law requires that one should display one’s proof of Texas auto insurance in the following situations:

I. At the time of an accident
II. Requested by law enforcement agent
III. Registration of vehicle
IV. Renewal of driving license

Inability to display proof may lead to penalties, which may include suspension of one’s driver’s license. Therefore, overall, all law abiding citizens intending to drive or own any vehicle in Texas must not only be insured but also carry documentation proving that they are indeed insured