Did you know that one out five (20%) Texas drivers are operating a motor vehicle without auto insruance? In 2005, the state of Texas passed the TexasSure, a bill specifically designed to mitigate this problem. And yes, it is a problem. As of June 2008, there were estimated 4 million vehicles on Texas roads without the required auto liability insurance coverage.
The Uninsured Motorist Ordinance was approved by the Dallas City Council and enforced on January 1, 2009. Any driver found not to show proof of state-mandated liability auto insurance will have their vehicle towed. As a side note: although some drivers treated obtaining liability insurance an option, it is and always has been a requirement.
Just like in other states, the law requires that every motorist should have Texas liability auto insurance. This policy provides motorists with a type of coverage to help them pay for liabilities that may arise from accidents where they are at fault.
Typically, liability insurance will cover the damages to other people’s properties and even hospitalization costs of the aggrieved party. It must be emphasized that the amount of liability to be covered will depend on the value stated on the insurance policy. You should also know that, as the policyholder, the liability auto insurance that you get will not cover the personal losses that you have incurred.
In Texas, the law provides for the minimum required amount of liability insurance. For instance, the Texas liability auto insurance that you buy must have at least $25,000 coverage for bodily injuries sustained by one person. Another minimum amount of $25,000 should cover for property damages for each accident where you are found to be at fault. These figures are the minimum values that should be reflected on your policy. You do have the option of obtaining a policy with higher liability limits. This can be very important especially now that hospitalization and medical costs are on the rise.
If your Texas liability auto insurance coverage falls short of the actual costs of the damages or medical bills that arise from the accident that you may have caused, you can still be sued for any difference between the actual costs and your policy coverage. Therefore, getting a higher coverage will definitely work to your advantage. And since this type of insurance is required by law, you need to always carry proof that you have taken out sufficient liability insurance coverage, particularly if you are out on the road. You need to show this piece of document not only during an accident, but whenever a law enforcer requests for it or when you renew your car’s registration.
You can be slapped with stiff penalties if you do not have the required Texas liability auto insurance. Apart from fines that can go anywhere from $170 to $1,000, your driver’s license can also be suspended and your vehicle impounded if you do not have proof that you have liability auto insurance. To make things a lot simpler, make sure to buy auto insurance from companies within your area.
Keep in mind that purchasing an insurance policy with the required minimum limits of liability is not an option, but its the law of the land here in Texas!