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The state law of Texas requires that motor vehicle drivers prove financial responsibility for any accident they cause. This means that they should be able to pay the costs incurred for medical or damage to property in case of an accident. In Texas, according to the Department of Insurance, there are about 20% out of the total number of drivers in Texas that are uninsured. Hence, in an effort to improve that number, the state has mandated every driver to carry a liability insurance complying with the minimum required by the state which is 30/60/25. This corresponds to coverage for bodily injury at $30,000 per person per accident; coverage total for bodily injury per accident at $60,000; and coverage for property damage at $25,000 per accident. There are three ways to prove financial responsibility in Texas – by buying car insurance in Texas where the insurance company will pay for the cost of damages up to a specified limit in exchange for paying insurance premiums; by buying a surety bond, where insurance is bought using real estate. The real estate property may be owned by the motor vehicle owner or driver or other individuals willing to give up the real estate if necessary to cover the damages caused by the accident; and by making a $55,000 deposit with the state comptroller. The most realistic of these three options would be buying cheap car insurance in Texas since not everybody has access to real estate or $55,000 funds. The lawmakers in Texas found a way to make it easier to track car insurance in Texas – by partnering with the Texas Department of Motor Vehicles (TxDMV) and other state agencies to form TexasSure, an electronic insurance verification program. This program mandates all state insurance providers to submit insurance details of motor vehicle drivers and owners to the TxDMV. Once included in the system, all the TxDMV departments and the law enforcement department can have access to the information in the said database. Drivers and owners of motor vehicles should not worry if they have the required minimum coverage on their vehicles. The TxDMV will only get in touch with you if your insurance expires or gets cancelled or if there are discrepancies in the records. If notified by the TxDMV, the vehicle owner or driver should respond with proof of insurance or financial responsibility or supporting documents to resolve the discrepancy. If a driver or a vehicle owner fails to provide even cheap car insurance in Texas as proof of financial responsibility, this may result to the driver’s license and car registration being suspended. The suspended driver or car owner will be given 20 days to appeal the suspension. In case of a decision to appeal, the suspended driver should get in touch with the TxDMVthrough the contact details written at the suspension notice. Such appeal can temporarily cause the suspension procedure to stop until the resolution of the case. If however, the driver is suspended for the second time for not having insurance, he will most likely have the car impounded for 6 months and a $15 fee per day for the total number of days the car remains impounded. Suspension may be lifted by providing proof of existing liability insurance coverage and paying reinstatement fees that range from $175 to $350. This is on top of the fee that needs to be paid for every day that the vehicle is impounded, for second-time offenders. For more information about cheap car insurance in texas and car insurance in texas visit our website cheapcarinsurancenets.com.
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