No one driving a vehicle expects to be the cause of an accident, but it happens all the time. According to the National Highway Traffic Safety Administration, in Texas 343,000 accidents occur annually. This has resulted in an increase in state minimum requirements for Texas liability insurance.
A guide published by the National Association of Insurance Commissioners indicated that every state in the union has mandated compulsory vehicle liability laws that require insurance. There are two forms, one of which is compulsory liability and the other is personal injury protection. The more common term is "no fault" insurance. In Texas this falls under the financial responsibility law which requires coverage be sufficient to pay for injuries and damages for those who are found at fault for causing an accident.
Coverage was increased in 2008 which now requires policies in the amounts of $25,000 for each person injured, up to $50,000 for each accident, as well as $25,000 for damage to any property. This is known as the 25/50/25 coverage, but this is temporary. According to the Texas Traffic Safety Administration in 2011 this amount will be increased to 30/60/25.
This increase now puts Texas in the extreme range of liability requirements compared to other states. The only one to exceed this requirement is Maine which requires a 50/100/25 compulsory liability coverage. This limit, however, is needed due to the rising cost of vehicle replacement as well as higher costs for medical treatment. It is designed to protect both those who cause the accident as well as the victims.
When an accident occurs, not only can it disrupt many lives, but can also result in long-term problems that affect the financial stability of individuals. Lost wages, post traumatic stress, medical expenses, suffering, and pain can significantly impact the lives of those involved. Additionally, many times vehicles either require expensive repairs or must be replaced altogether. With compulsory liability insurance, however, these costs are often paid in total.
When driving in Texas if you are stopped, you will be required to prove you have the minimum insurance required by law. This ensures that you acknowledge you accept the financial responsibility in case you cause an accident. For those who fail to carry a current insurance card in the vehicle or fail to produce a policy, penalties can run as high as $350. If this is the case, in more than one stop, fines of up to $1,000 can be applied and the driver could lose their license. Additionally, the vehicle could also be impounded which often results in a per day charge until the issue is resolved and proof of insurance is provided.
For those who choose to operate a motor vehicle without the minimum required Texas liability insurance, they are taking a big chance on their future financial security. Not only are uninsured motorists subject to lawsuits for damages and medical expenses, they can even be imprisoned. Additionally, because so many Texas drivers do not carry insurance, higher rates are applied to those who do carry the required insurance. If everyone will begin to play their parts, rates will go down.
Wondering just why it's important to carry Texas liability insurance cover? All you need to know now in our TX ins highlights overview.
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