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.