What Are Texas Auto Insurance Laws?

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Before one begins to drive in Texas, he or she must be aware of Texas auto insurance laws. If drivers violate these laws too many times – with a DWI for instance – it could mean the end of their driving privileges in the state, hefty fines and jail time.

Minor traffic violations can also be costly, in the form of increased auto insurance premiums. This can all be avoided with safe driving and knowing the Texas auto insurance mandatory minimums. Read on to learn more.

Texas Auto Insurance Minimum Requirements

The first thing to know about Texas auto insurance laws is the state’s minimum requirements. These are the amounts of liability insurance each motorist is mandated to carry for bodily injury and property damage, in the event the driver is at-fault for causing an accident. $30,000 is required for one person for bodily injury liability and Texas mandates that bodily injury liability insurance for two people is set at $60,000. For property damage the minimum required $25,000.

After motorists have purchased their insurance policies, Texas auto insurance laws state that they must provide proof of this insurance coverage. A driver may be asked to demonstrate proof of insurance on several different occasions, such as when being stopped by the highway patrol, after being involved in a car collision, when registering the vehicle, when acquiring a driver’s license and when taking the vehicle for its annual inspection.

Texas Proof of Insurance

It is also part of Texas auto insurance laws to have the proof of insurance within the vehicle at all times. Violating this law can lead to fines and increasing auto insurance rates. Subsequent convictions mean increased fines and a suspended license or vehicle registration. With enough convictions for this crime a motorist can lose his or her driving privileges altogether and may even have his or her vehicle impounded.

The laws do give drivers the option to self-insure, rather than buy auto insurance through a typical insurance carrier. Those who have real estate that they are willing to give up in the event that they are found liable for a car accident can place the property into a surety bond.

A good friend or relative can place his or her property into a bond for another person as well. This bond will be used to pay the damages caused by the collision in the event you are at fault. The other way of self-insuring is to make a deposit with the Texas controller. The amount required for this option is $55,000 and most people do not choose to, or simply do not have, the financial ability take advantage of it.

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