Texas Financial Responsibility Law: Minimum Auto Liability Insurance Limits have Increased
(February 2012)
Texas law requires people who drive in Texas to pay for the 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 when you are at fault in an accident. It does not pay to repair or replace your car or for your injuries. Consider buying other types of coverage – such as personal injury protection or medical payments, collision, and comprehensive – to pay for these expenses.
Financial Responsibility
Most drivers buy liability insurance to meet the state’s financial responsibility law. You must buy at least the minimum amount of coverage. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
Breaking the Law
There are penalties for breaking the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Additional convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your car.
When you obtain an auto insurance policy, your insurance company will send you a proof-of-insurance card. You will need this card to prove that you have 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.
TexasSure
TexasSure is a verification system that lets law enforcement and county tax officials determine whether you have auto liability insurance. Police can use TexasSure when they pull you over to check if the car you’re driving has insurance.
TexasSure is intended to reduce the number of uninsured vehicles in Texas. An estimated 4 million vehicles – one in five – on Texas roads are uninsured. TexasSure also helps prevent the use of counterfeit proof of insurance cards and helps stop people from getting insurance so that they can get their car inspected or registered, and then cancelling their insurance afterward.
For more information, visit the TexasSure website
www.TexasSure.com
Buying Auto Insurance
Contact an insurance company or agent in your area to buy auto insurance. In addition to liability insurance required by law, you can also purchase these additional coverages: collision and comprehensive; medical payments; personal injury protection; uninsured/underinsured motorist; towing and labor; and rental reimbursement.
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 websites to help you shop:
- Automobile Insurance Sample Rate Comparisons on HelpInsure.com
- Automobile Insurance Made Easy
- Glossary of Common Auto Insurance Terms
- You Could Save $100 in a Hour
- Shopping Smart
Texas has a Consumer Bill of Rights for auto insurance. Your insurance company must send you a copy with your policy. Read it to understand your rights and responsibilities under Texas law.
Having Trouble Finding Insurance
If a company turns you down, keep shopping. Companies have different criteria for accepting drivers for coverage.
If you’ve been rejected by two insurance companies, you may buy basic liability insurance through the Texas Automobile Insurance Plan Association (TAIPA). TAIPA doesn’t provide collision or comprehensive coverage or higher liability limits than the law requires. You have the option to buy personal injury protection and uninsured/underinsured motorist coverage through TAIPA.
For TAIPA coverage, contact an agent who will submit your application to TAIPA. TAIPA will then assign you to a company to collect your premium and issue your policy. The company will provide coverage for up to three years. Call TAIPA for more information
1-866-321-9154
Help with an Insurance Complaint
If you have an insurance-related complaint, first try to resolve the problem with the company. Complaints often result from misunderstandings and can be worked out by talking with the company. Most companies in Texas have toll-free numbers for customer assistance. Read your policy to find out how to contact the company.
If you're unable to resolve your issue by talking with the company, file a complaint with TDI.
Read about TDI’s consumer complaints process in the Helping You With Your Insurance Complaint publication. You may also email, mail, or fax your complaint along with copies of your supporting documents to
Texas Department of Insurance
Consumer Protection Program (MC 111-1A)
P.O. Box 149091
Austin, TX 78714-9091
Fax: 512-475-1771
E-mail: ConsumerProtection@tdi.state.tx.us
For More Information or Assistance
For answers to general insurance questions, for information on filing an insurance-related complaint, or to report suspected insurance fraud, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday, or visit our website
1-800-252-3439
463-6515 in Austin
www.tdi.texas.gov
For printed copies of consumer publications, call the 24-hour Publications Order Line
1-800-599-SHOP (7467)
305-7211 in Austin
To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hotline
1-877-4FIRE45 (434-7345)
The information in this publication is current as of the revision date. Changes in laws and agency administrative rules made after the revision date may affect the content. View current information on our website. TDI distributes this publication for educational purposes only. This publication is not an endorsement by TDI of any service, product, or company.
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