Texas Car insurance Requirements

Requirements of Car Insurance

Auto insurance is designed to restore any losses to drivers who are involved in an accident in which a loss is sustained. Within the state of Texas, however, there are limits drivers have on auto insurance policies. These limits are designed to promote people to carry some kind of responsibility if they are involved in an accident.

The state of Texas has laws that make drivers carry proof of insurance. The proof of insurance shows that the driver has met the state minimums for bodily injury and property damage, which is set at $25,000 per person, $50,000 maximum, and property damage of $25,000. Drivers are allowed to have higher limits than the state minimums and are often encouraged to do so. If an accident happens the at-fault party is required by law to show proof of insurance.

The higher the limits of liability, the better protected the insured will be. For instance, if an accident has $100,000 in bodily injury and the driver carried only the state minimums then the insured would have to pay the difference between what the insurance paid out and what was left. If the insured did not have enough money to pay the difference then there is a good chance they will be sued for the rest.

Texas also fines drivers for not carrying insurance. A fine, for not carrying the minimum insurance coverage’s, ranges from $175 to $350. If the person is a repeat offender, then they face fines of $350 to $1,000. They could also lose their license and have their vehicle impounded. It is important for drivers to carry some kind of insurance.

Will my Relocation Affect my Vehicle Insurance?

To make relocation less stressfulRelocating is always stressful, and one thing you don’t want to be worrying about when you move is your vehicle insurance. Though vehicle insurance rates don’t always change when you relocate, oftentimes they can be lower or higher, depending on where you’re moving to.

Make Sure You Have Adequate Vehicle Coverage
It’s important to understand that each state has its own requirements for minimum insurance rates, and if you’re relocating to another state, you’re best advised to make sure your policy meets the legal requirements for your new location. For example, if you have the minimum vehicle insurance coverage while you’re living in California and you move to Connecticut, chances are you’ll need more vehicle coverage. The easiest way to find out if you need to adjust your vehicle insurance is to contact your insurance carrier as soon as you know where you’ll be relocating, and ask what the consequences will be for your vehicle coverage and rates.

Crime Rates Affect Vehicle Insurance Rates
If you’re not moving out of state, you might still find your vehicle insurance rates change. If you move from a city with a high crime rate to a rural area without adding a large amount of miles to your weekly drive, you can be sure your vehicle insurance rates will drop. But if you move from the suburbs to an inner city apartment building with only street parking, you’re probably looking at a significant rate hike because your vehicle is more at risk of being damaged or stolen.