Texas Auto Insurance

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Texas Auto Insurance

The state of Texas has determined that approximately 20% of the cars on the road at any given time do not have any type of car insurance. This means that if you are in an accident, there is a 20% chance that you will end up paying for the damages yourself. This is the reason Texas has made it mandatory for you to provide financial responsibility for any and all motor vehicles you register.

Financial ResponsibilityTexas Auto Insurance

There are a few ways you can handle having financial responsibility that will satisfy the state. The first, and by far the most popular way, is to purchase a car insurance policy. The law requires that if you chose this option you are covered at a bare minimum for the amounts of:

• $25,000 bodily injury coverage for one person in a single accident

• $50,000 bodily injury coverage total per accident

• $25,000 property damage coverage per accident

There are other options available to you. If there is a lien on your car because you are still making payments on it the lien-holder may require that you carry additional insurance that will repair the car if you are at fault or if the other driver is not covered. If the car is paid for, but still worth a good amount of money, you may decide to purchase collision insurance on your own.

You may also make a deposit of $55,000.00 to either the county comptroller or the county judge. These funds will be set aside, and can be used to pay any obligations you acquire while driving your automobile.

Another option, if the coverage needs to be for two people, both property owners, is to take out a surety bond with the county clerk. This will be putting the property on the line if you are in an accident. The property may be sold to pay your obligations.

The Consequences for Not Taking Financial Responsibility

If you somehow end up with no insurance, or take the money out of the escrow accounts, the state will find out about it and they will do something about it. Your insurance company will report to the DMV when your insurance lapses. You will be notified, and given a chance to prove you have new insurance. If you do not have a new policy your license to drive will be suspended and all vehicle registrations will become invalid. In order to remedy the situation you will be required to pay a fine of not less than $175 and no more than $350. You will also have to show proof of current insurance. If you have a second occurrence of no insurance, the state will impound your vehicle for up to 180 days, charging you’re a daily impound fee.

It really is not worth it to let your car insurance lapse. The fines and penalties can cost you more than your monthly premium. For a free quote on what it will cost you to insure your car just put in your zip code to get started.