Auto Insurance Drivers Prepare for Texas Insurance Requirements Increase
Auto Insurance Drivers Prepare for Texas Insurance Requirements Increase: In an increasing effort to help ensure that Texans have more protection while occupying the roadways, the Lone Star State has gradually raised the minimum requirements for the liability portion of a car insurance policy over the course of the past few years. While many may not like the idea of higher limits of coverage being required, since it will likely cause the price of current policies to increase, it can help motorists in the event that they cause a traffic accident which would have exceeded the previous state mandated requirements.
The first change in Texas’ coverage required went into effect on April 1, 2008 and mandated that any liability policy purchased or renewed following that date must consist of no less than $25,000 for bodily injury or death to one person, $50,000 for bodily injury or death to two or more people and $25,000 for property damage per accident. These limits were increased from the previous amounts of $20,000, $40,000 and $15,000, respectively.
The newest change to the Texas car insurance laws will mandate that automobile policies purchased or renewed after January 1, 2011 must have a limit of $30,000 for bodily injury or death to one person and $60,000 for more than one person. However, there will be no change to mandated limit of property damage liability.
The purpose of liability insurance is to ensure that a driver is financially responsible for damage that they may cause another motorist, but it is also present to protect the driver from a possible financial disaster. If a motorist did not have such coverage and struck another vehicle, then all of the damages that they caused to the third party driver may have to be paid out of pocket, which could quickly amount to thousands of dollars. If a Texas resident is caught without this coverage there can be repercussions as well. A first time offender may have to pay between $175 and $350, while a second offense could amount to a fine of $350 to $1,000 and the suspension of the resident’s driver’s license, in addition to the possibility of having their automobile impounded.
To avoid such repercussions, motorists are encouraged to acquire the proper amounts of coverage, and to even explore the idea of increasing their liability coverage. Although the state requirements are adequate for most situations, each and every accident is unique in damages and potential costs, and because of this there remains a chance that a driver could be caught off guard. If a driver is involved in an accident in which they are at fault and cause more than $25,000 worth of damage to an automobile of the person they struck, then the third party motorist has the option of suing the offending driver for the remaining property damage costs.
Increasing ones liability limits beyond the state requirements decreases the likelihood of being involved in a lawsuit and having to pay various expenses out of pocket. Often, this can be accomplished with only a minimal increase to one’s policy rates, with the subsequent increase in protection being well worth the increased price. To help ensure that residents are knowledgeable about the various requirements, TX publishes and updates a guide detailing auto insurance coverages which describes many of the finer points of a policy, which could in turn explain the importance of having an adequate amount of coverage.