In an accident, your car insurance protects your financial interests by paying the other driver’s medical expenses and repair costs.
According to the Texas Department of Transportation, a reportable car accident occurred every minute and seven seconds in 2020 throughout the state.
Thus, making sure people driving on Texas highways possess car insurance coverage is a serious concern.
Without car insurance, many people end up paying their medical expenses and repair bills out of pocket, leading to serious financial issues.
The state attempts to remedy this problem by imposing Texas car insurance requirements. We have prepared a short guide explaining the car insurance requirements in Texas.
If you have any questions about requirements for car insurance in Texas, contact Armstrong Lee & Baker LLP today.
Texas Car Insurance Requirements: An Overview
Texas law requires anyone operating a vehicle within the state to show proof of auto liability insurance coverage. Liability coverage pays another party’s expenses if you cause an accident.
Texas car insurance requirements mandate at least $30,000 in coverage for injuries per person, with up to a total of $60,000 per accident, and at least $25,000 in coverage for property damage.
Although the law requires only liability insurance coverage, other types of insurance coverage can provide more financial assistance in the event of an accident.
For example, collision coverage helps cover the costs of repairing your own vehicle after an accident. Comprehensive insurance coverage helps cover the costs of repairing your vehicle due to incidents not involving a car crash.
Underinsured or uninsured driver insurance helps cover the costs of a car accident in the event the responsible driver does not have car insurance at all or does not have adequate coverage to pay for your losses.
According to the Texas Department of Transportation, approximately 20% of drivers on Texas roads are uninsured. As a result, many drivers elect to take out this coverage.
In fact, insurance companies must offer you uninsured/underinsured driver coverage, and if you don’t want it, you must tell the company in writing.
Enforcing car insurance requirements in Texas might seem difficult. However, there are many situations where drivers are asked to provide proof of insurance, including:
- During a traffic stop,
- Obtaining a new driver’s license,
- Renewing your driver’s license,
- Getting into a car accident, and
- Having your vehicle inspected.
If you cannot show proof that you are complying with the requirements for car insurance, you could face added penalties or have your application denied.
Do You Have Questions About Texas Car Insurance Requirements? Contact Armstrong Lee & Baker LLP Today
Texas imposes car insurance requirements to make sure drivers can cover the costs of car accidents through their insurance companies.
However, other types of insurance provide additional protection in the event of an accident. We can help you wade through your insurance options.
We know that the aftermath of a car accident is often a frustrating and confusing experience. Our team at Armstrong Lee & Baker LLP is here to help.
We are problem solvers who focus on what matters for our clients. If you suffered injuries in an accident and want to know the requirements for car insurance in Texas, reach out to our firm right away.
Scott Armstrong obtains remarkable results for his clients. He has successfully tried numerous cases to favorable verdicts and reached significant settlements on his clients’ behalf. In the process, he has recovered millions for his clients.
Frequently Asked Questions
Absolutely nothing. At Armstrong Lee & Baker LLP, our attorneys work on a contingency fee basis. This means that you owe us nothing unless we win your case, whether that’s in the form of a settlement or a judgment. We offer a free consultation to anyone who thinks they might have a personal injury case.
We suggest speaking with an attorney as soon as possible after your injury. Something to keep in mind is that all personal injury cases need evidence, and that evidence often degrades over time. As a result, many jurisdictions have a strict statute of limitations (or time limit) for filing a claim. In Texas, most victims have only two years from the date of injury to file, so it is important to start building your case immediately.
In the state of Texas, employers have the option of filing for workers’ compensation insurance. This policy covers them in case an employee suffers an injury on the job. However, some employers choose to be non-subscribers, which means they opt out of this coverage and lose certain legal protections. This means that if an injured employee sues them after a work injury, they may end up paying more damages. In addition, they may be liable for pain and suffering, punitive damages, and medical benefits. Learn more about non-subscriber injuries here.
The Texas Department of Insurance (TDI) keeps track of employers that report their non-subscriber status. Currently, you can find a spreadsheet of every reported non-subscriber business in Texas under TDI’s workers’ compensation insurance coverage verification page. This includes the business address, business name, and filing dates. Learn more here.
There are a few different ways to manage your bills while waiting for your case to settle. For medical treatment, it is common to arrange a lien with the doctor’s office or hospital. A medical lien is essentially an agreement to pay back your treatment costs with a portion of your potential settlement. Another option for miscellaneous bills, such as rent, utilities, or other essential expenses, is lawsuit funding. Much like a lien, you pay these loans back with a portion of your settlement or judgment. However, these loans have high interest rates and fees, so be sure to discuss this option with your attorney.