In Texas, all drivers must purchase and maintain auto insurance coverage. According to local laws, these drivers must acquire no less than the minimum liability coverage. Any failure to comply with these laws could result in penalties. An Auto Insurance Company can provide a variety of policies to fulfill these requirements and help drivers avoid these penalties.
What are the Auto Insurance Requirements?
Currently, the state of Texas requires liability coverage only. The requirements for the policy begin with a minimum payout of $30,000 for the first injuries that occur in an accident. The maximum coverage should equate to $60,000 for the accident if there is more than one victim. This policy must provide no less than $25,000 for property damage.
When is Proof Needed?
All automobile owners must provide evidence of an auto insurance policy when they are stopped by law enforcement. This includes any instance in which a checkpoint is set up on local roadways. Additionally, the owner must provide evidence of the policy when they register a new vehicle or renew their vehicle tag.
What is the Texas Verification System?
The Texas Verification System allows the Department of Motor Vehicles to verify all auto insurance policies presented by automobile owners. This system provides the department with updates if a policy is canceled or expires. Once the department is notified of any cancellations or expired policies, they send a notification to the owner. The owner has a period of ten days to provide updated proof of auto insurance coverage.
Any failure to purchase or maintain insurance coverage will result in fines. The first conviction for no insurance equates to a fine between $175 and $350. A second conviction results in a fine of $350 with a maximum of $1,000. The automobile owner’s driver’s license and registration is also suspended.
In Texas, all drivers must have automobile insurance. The purpose of this requirement is to reduce the potential for lawsuits related to automobile accidents. The laws penalize any drivers or automobile owners who don’t comply with the laws.
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