Texas 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.