Texas Raising State Minimum Auto Coverage Amounts
August 24th, 2007 by 
Jeannine C
Drivers must carry more auto insurance in Texas beginning April 1, 2008. Though the state has always required coverage, the limits were low at just $20,000/$40,000 for bodily injury liability insurance and $15,000 in property damage liability coverage. The new minimums will now rise to $25,000 per injured person and $50,000 for two or more injured people in an accident, and $25,000 for property damage, according to a report by Insurance Journal.
This change coincides with the launch of the Texas Financial Responsibility Verification Program, which is a very long name for a new real-time system designed to reduce the number of uninsured motorists on state roads. The system enables law enforcement officers and other state personnel to instantly access a database telling the insurance status on each driver and vehicle. Failure to comply by not carrying at least the minimum insurance has serious consequences, starting with having the vehicle impounded if the driver can’t show proof of insurance.
Although critics worry that maintaining such a huge database could lead to reporting errors, and fret about a individuals who may be inconvenienced by mistakes, other states have successfully operated similar databases with minimal issues. Meanwhile, incidents of uninsured motorists decreased, consequently reducing the cost of that coverage. Currently experts estimate that 15-20% of Texas motorists are uninsured. Let’s see what just how low that number goes by April, 2009.
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1 Comment »
August 25th, 2007 at 10:12 pm
Hi Jeannine,and thanks for the great info.
It’s about time Texas raised its minimum car insurance limits and started holding people accountable for their actions!
A former Texan myself, about five years ago someone pulled out in front of me on a wet Texas highway and, of course, the lady was uninsured. Here I was a safe-driving, law-abiding citizen just driving to work one day minding my own business and WHAM!–I’m suddenly spending hours at the repair shop, fighting with my own insurance company to get the damage covered and thanking GOD for uninsured motorist coverage! All because one person decided to drive without Texas auto insurance.
I hope they start throwing the book at uninsured motorists in Texas–and everywhere else too, for that matter. I’m tired of the rest of us having to take up the slack for those who choose not to carry car insurance!