Texas Auto Insurance Laws
Auto Insurance Laws and Trends in TX
The state of Texas has implemented many laws in order to ensure that all drivers comply with the regulations and make driving safer for everyone. Texas is a tort insurance state. They require that the person who is responsible for an auto accident to pay for injuries and damages sustained.
The Texas financial responsibility auto insurance laws
Under Texas's Financial Responsibility Laws, all drivers must carry minimum limits of bodily injury ($25,000 per person and $50,000 per accident) and property damage ($15,000 per accident). In addition, any driver that fails to follow this law by driving without insurance will be penalised under the Texas Driver Responsibility Program.
Failing to maintain coverage would mean that the offender is subject to a $250 fine per year, for a maximum of 3 years. In addition, they will have to purchase a SR-22 for the 3 years. This is basically a high risk insurance that is required for motorists who have been caught driving without insurance or been convicted of a DUI, reckless driving, or other serious driving infractions.
Driving under the influence in Texas
Texas is also very strict with motorists who have been caught driving while impaired. The automatic penalty is a $2,000 fine, plus suspension of driving privileges of 3 months to a year, plus jail time of 72 hours to 7 days. Under Texas's Implied Consent Law,2 when a driver obtains a driver's license, they are automatically consenting to chemical, breath, urine, and blood tests to determine if alcohol or drugs are present in the system.
"Insurance-by-the-Mile" Program
Texas has implemented a new type of auto insurance called Insurance-By-The-Mile. This is geared towards motorists who drive less than 12,000 miles annually. This includes those who live close to work, drive in car pools, or take mass transit. It is aimed at helping to protect the environment. Insurance rates depend of the territory of residence, age, and type of vehicle. The drivers can purchase insurance in 1,000 -mile increments up to 6,000 miles at a time. These miles will expire after a period of 6 months.