Texas laws, like other states, require individuals that wish to own and operate a motor vehicle to be responsible for any injury or damage they may cause. Purchasing auto insurance is the way most people comply with the law, but, it is possible to self-insure by setting aside sufficient funds that meet the mandatory minimum coverage requirements. The law requires the responsible party in an accident to have coverage to pay for the damage caused to property and any injuries caused to people.
This liability coverage is subject to a minimum policy of 30/60/25 coverage. That translates into $30,000 in medical coverage per person per accident and $60,000 total medical coverage for all individuals hurt in an accident. A total of $25,000 is allocated for damage to the other vehicle or property.
The law requires you to show proof of insurance in a number of different situations. You must always be willing and able to show a police officer your proof of insurance anytime he or she asks. If you are in an accident, the law requires you to share insurance information with the other party. Getting a driver’s license or renewing a license is another situation where the law requires you to produce proof of insurance. ou will need it when you buy a new car and need to register it or if you want to renew your current registration. Finally, Texas law requires a valid insurance card when it comes time for your car to be inspected.
Failure to carry proper insurance can result in fines, suspension of your license and even impoundment of your vehicle. For first time offenders, the fine can be between $175-$350 and for repeat offenders, the fines can be anywhere from $350-$1,000.