What are the Laws Concerning Auto Insurance in Texas?

Mandate Insurance Laws of TexasTexas has a number of auto insurance laws of which drivers should be aware. The laws are in place for the protection of the people in case there is an accident. For those who are at fault, the law helps the responsible party pay for damages. For the not at-fault party, it allows them to collect in case the other person will not pay for the damages.

Is it required for drivers to have insurance in Texas?
Texas law states that drivers must carry at least the minimum liability limits of 25/50/25, which means $25,000 per person, $50,000 maximum, and $25,000 for property damage.

Is a driver supposed to carry proof of insurance with them in the car?
Yes, proof of insurance is to be carried in the vehicle at all times.

Are there penalties for not having insurance in the state of Texas?
There are penalties for not having insurance, such as fines or license suspension. Texas can levy fines of up to $1,000 for not having insurance. Along with license suspension, drivers can have their cars impounded until proof of insurance can be provided.

Can drivers be excluded from an auto policy?
Texas allows insurance companies to exclude certain drivers from auto policies. People with a suspended license are a good example of people who can be excluded. Excluded drivers are in no way covered by the limits of liability.

Who has to pay for an accident in the state of Texas?
In Texas, the person who is found to be at-fault in the accident is required by law to pay for all damages.

What is a tort state?
A tort state is a state in which a person is said to at-fault or not-at-fault in a motor vehicle accident. A no tort state is a state where the owner of the car is to fix their own car regardless of who is at-fault in an accident.

Do You Know Where Your Insurance Policy Is?

Importance to Secure Home and AutoFirst things first: do you know where your home and auto insurance policies are? The likelihood—as demonstrated by the vast majority of people who wouldn’t be able to tell you where their current insurance documents were if their lives were on the line—is that you don’t. But just because you’re in good company doesn’t mean that you’re in good shape.

Why It’s Important to Have Your Home and Auto Insurance Policies
Having a copy of your current home and auto policies is important for several reasons, the least of which is so that you’ll be able to refer to either in the event of an accident or damage to your home. Being able to tell the level of your home insurance coverage at a moment’s notice can also come in very handy if you’ve experienced damage to your home and want to find out what’s covered prior to contacting your insurer. Filing too many claims can result in an increase to your premiums, and in many cases you’ll want to weigh your options before picking up the phone—especially if the repair bill is less than your deductible.

How to Get Another Copy
Insurance policy paperwork isn’t irreplaceable, and it’s not terribly difficult to get ahold of another copy if your searches through piles of paperwork at home have yielded no results. You can have another copy sent out to you by simply calling your insurance provider and informing them that you’ve misplaced your current copy.