The minimum amount of liability insurance coverage required to satisfy the Texas Financial Responsibility law is 30,000/60,000/25,000. This means that your insurance policy must insure you against loss in an accident where you have been determined to be at-fault for a minimum of:
- Thirty thousand dollars ($30,000) because of bodily injury to or death of one (1) person in any one (1) accident.
- Sixty thousand dollars ($60,000) because of bodily injury to or death of two (2) or more persons in any one (1) accident, subject to the thirty thousand dollar ($30,000) per person limit.
- Twenty-five thousand dollars ($25,000) because of injury to or destruction of property of others in an accident.
Having the minimum liability insurance will satisfy the law, however, you can purchase higher coverages to better protect yourself. If you are determined to be at fault of an accident that results in more damage than your liability insurance covers, you could be sued personally. This is especially important for drivers in Frisco, Texas because the average automobile value is over $25,000. The agents at Texas Insurance Services in Frisco can explain your options and allow you to choose your desired level of protection.
Under Texas law, you are required to provide documentary proof of Financial Responsibility in the following circumstances:
- At the request of a law enforcement officer at the time of an accident or traffic stop
- When registering a vehicle
- Upon issuance of a driver’s license
To ensure drivers continue to meet the Financial Responsibility requirements, Texas requires insurance companies to provide a weekly report to the TexasSure vehicle identification system, listing the Vehicle Identification Number (VIN) of each vehicle insured under an active policy.
Penalty for failure to comply with Texas Financial Responsibility requirements:
Failure to maintain proper insurance could lead to the suspension of your driver’s license and fines. Under the Texas Driver Responsibility Program, drivers who are convicted of failure to maintain insurance are required to pay a flat surcharge of $250.00 per year. This surcharge is in addition to any other costs associated with the driving offenses and must be paid yearly for three (3) years. You may also be required to file an SR-22 or SR-22A for an additional charge on your auto insurance policy. An SR-22 is a certificate of financial responsibility that your insurance company issues to the state of Texas to prove that you have maintained auto insurance for a specific time period.
The experienced and knowledgeable agents at Texas Insurance Services in Frisco can help you satisfy the state auto insurance requirements and guide you in finding the coverage that is best for your unique situation. We want to be your Frisco auto insurance agency.