The state of Texas requires drivers to pay for the cost of accidents for which they are at fault. Some drivers may be self insured, but the vast majority of drivers on Texas roadways need vehicle liability insurance. Texas requires drivers to carry liability insurance of at least the following minimum amounts.

• $30,000 for each injured person,
• $60,000 for those injured per accident,
• $25,000 for property damage per accident.

Liability Insurance

Liability insurance pays for damages to others if you are in an accident in which you are at fault. Covered cost includes medical cost, the cost of lost wages, funeral cost and the cost to repair or replace other people’s property. Other cost such as legal expenses or punitive damages will also be covered by liability insurance. When purchasing vehicle liability insurance you should remember that minimum liability coverage may not be enough. If you are in a serious auto accident, you can be held liable for any damages that exceed the minimum liability coverage amounts. The cost of damages in a serious automobile accident could be extremely high. Many experts advise their client to get at least $500,000 in liability insurance.

Proof of Insurance

In Texas drivers are required to carry proof of financial insurance at all times. For most drivers, this means that they must have a proof of insurance card. Drivers can be required to provide proof of insurance in the following situations:

• When they register or renew their cars registration
• When they receive or renew their driver’s license
• When they have their car inspected
• When they have an accident
• When a law enforcement officer request it

Drivers will typically verify proof of insurance with an insurance identification card. Your insurance company is required to provide you with an identification card when you purchase or renew your vehicle insurance. The insurance identification card will give the name of the insurance company, the policy number, and the policy’s effective and expiration dates. It also includes your name and a description of your car.

Penalties for not having Insurance

Texas is serious about drivers meeting their financial responsibility requirements. The penalties for violating the state’s financial responsibility requirements are severe. The penalties are as follows:

•  First Offense:  A fine of $175 TO $350.
• Additional Offenses:  A fine of up $350 to $1,000 plus suspension of your driver’s license and impoundment of your vehicle.
• Offense without a driver’s license: A $2,000 fine or 180 days in jail or both.
• Offense if you cause an accident which results in injuries or death: $4,000 maximum fine, or one year in jail or both.

As you can see driving without vehicle insurance, is a risky decision.

Optional Insurance Coverage’s

Many drivers will want to purchase insurance that will protect them and their vehicle in the event of an accident. If you fit into this category, you will want to purchase one or all of the following insurance coverage’s.

Collision Coverage

Collision vehicle insurance is not required by the state of Texas. However, if you have a loan or lease a car the finance company will probably require you to buy collision insurance. Collision insurance pays for the damages to your vehicle if it is in an accident with another vehicle or object. Collision insurance will pay for the damage to your vehicle that exceeds the cost of your deductible no matter who was at fault. If you purchase collision insurance, you need to remember that the insurance company will not settle a claim in excess of the blue book value of your vehicle. You should therefore, be careful not to purchase more insurance coverage than you need.

Comprehensive Insurance

Comprehensive vehicle insurance is also not required by the state of Texas. However, if you have a loan or lease a car the finance company will probably require you to buy comprehensive insurance. Comprehensive insurance covers damages to your vehicle that are not covered by collision insurance. Damages that are the result of theft, fire, vandalism storms or acts of god are covered by comprehensive insurance. You should be careful about how much comprehensive insurance you purchase, because the insurance company will not pay for damages that exceed the blue book value of your vehicle.

SR 22 coverage

In the state of Texas, persons whose driving privilege has been suspended or revoked are required to file and maintain a Form SR-22 with the Department Public Safety. Form SR 22 insurance is mandatory for a period of two years from the date of conviction. The vast majority of drivers who are required to get SR 22 coverage have been convicted of driving under the influence (DUI). SR 22 is not a type of insurance, it is a certificate that proves to the Department of Public Safety, that you will have insurance in the future. In order to get SR 22 coverage, you will have to contact an insurance agent or company and purchase insurance. The insurer will then contact the Department of Public Safety so that they can issue the certificate. The minimum liability coverage for SR 22 for SR 22 coverage in Texas is as follows:

• $25,000 for bodily injury to or death of one person
• $50,000 for bodily injury to or death of two or more persons in one accident;
• $25,000 for damage to or destruction of property of others in one accident.

Uninsured/Underinsured Coverage

You will appreciate this insurance if you are in an accident with a driver who does not have insurance, or does not have enough insurance to cover your expenses.  Uninsured/Underinsured insurance will cover your medical expenses or other accident expenses up to the limits of your policy. This insurance will also cover you if you are in an accident with a hit and run driver.

Teen Driver Coverage

If you are a parent, you can usually add your teenage child to your auto insurance policy. However, adding a teenager to your auto insurance policy can be expensive. It is usually cheaper to buy a separate policy for your teenage driver.

Some insurance companies give a discount for teenagers who complete a Texas Department of Public Safety approved driver education course. Also, teenagers who receive good grades in school may be eligible for reduced rates.

When looking for vehicle insurance it is extremely important to remember that rates vary from one insurance company to another. Therefore, you should use the Internet to shop around for the best coverage and most affordable rates.