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NO BULL.... IT'S THE LAW
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| TEXAS LAW REQUIRES people who drive
in Texas to be able to pay for the automobile
accidents they cause. Most drivers do
this by buying automobile liability insurance.
Liability insurance pays to repair or replace
the other driver’s car and pays other people’s
medical expenses. It does not pay to repair or
replace your car or for your injuries.
The minimum coverage amount required by
the state’s financial responsibility law
increased on April 1, 2008, to $25,000 for
each injured person, up to a total of $50,000
per accident, and $25,000 for property damage.
(The limits prior to April 1 were $20,000
for each injured person, up to a total of
$40,000 per accident, and $15,000 for property
damage per accident.)
The limits will increase again on January 1,
2011, to $30,000 for each injured person, up
to a total of $60,000 per accident, and
$25,000 for property damage per accident.
Drivers will be required to comply with the
new limits as their policies are issued or
renewed on or after the effective dates.
Consumer Bill of Rights
Your insurance company is required to provide
you with a summary of your rights
under Texas insurance law when it issues you
a policy. This summary is called the
“Consumer Bill of Rights.” The Bill of
Rights is being revised to reflect the change
in the state's minimum liability limits. Until
the revised Bill of Rights is adopted, the copy
you receive with your new policy will still
include the old limits in place prior to April 1.
What is Financial Responsibility?
Financial responsibility is the ability to pay
for any accidents you cause. The Transportation
Code lists various ways for drivers to
establish financial responsibility. Most drivers,
however, do this by buying automobile
liability insurance.
Violating the Law
There are severe penalties for violating the
state’s financial responsibility law. A first conviction
will result in a fine between $175 and
$350. Subsequent convictions could result in
fines of $350 to $1,000, suspension of your
driver’s license, and impoundment of your
automobile.
When you obtain an auto insurance policy,
your insurance company will send you a
proof-of-insurance card. You will need this
card to show proof of insurance when you
• are asked for it by a law enforcement officer
• have an accident
• register your car or renew its registration
• obtain or renew your driver’s license
• get your car inspected.
The state is also implementing TexasSure,
Texas’ financial responsibility verification
program. TexasSure will allow law enforcement
officers and other designated state users
to immediately verify whether a person has
auto insurance. This means, for example, that
a law enforcement officer can electronically
confirm whether a registered vehicle has
insurance coverage in effect during a traffic
stop. For more information, visit the
TexasSure website
www.TexasSure.com
Obtaining Auto Insurance
To buy auto insurance to comply with the
state’s financial responsibility law, contact an
insurance company or agent in your area.
Rates vary widely among companies, so it
pays to shop around. Make sure you get
quotes from several companies and agents
before you buy.
The Texas Department of Insurance (TDI)
provides several helpful publications and web
resources to help you shop:
• Shopping Smart
• Automobile Price Comparisons
• Automobile Insurance Made Easy
• Glossary of Auto Insurance Terms
Having Trouble Finding Insurance
If a company turns you down, keep shopping.
Different companies have different criteria
for accepting drivers for coverage.
If you can’t find auto insurance from a
licensed company, you might be able to buy
coverage through the Texas Automobile
Insurance Plan Association (TAIPA). TAIPA
provides basic liability insurance, personal
injury protection, and uninsured/underinsured
motorist coverage to drivers rejected by
insurance companies. TAIPA is available for
drivers who can’t find basic liability coverage
elsewhere. TAIPA sometimes is called the
assigned-risk plan.
You qualify for coverage through TAIPA
only if two insurance companies reject you. A
licensed insurance agent must sign your
application and send it to TAIPA. TAIPA
then assigns you to a company, which collects
your premium and pays your claims. The
company will provide coverage for as long as
three years.
1-800-580-TAIP (8247)
444
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