Requiring automobile coverage and proof of insurance is not a foreign concept to the inhabitants of Texas. Residents of the Lone Star State must follow the financial responsibility laws which requires all motorists to be able to pay for any damages they cause when involved in a motor vehicle accident, and must also carry proof of an automobile policy with them in their automobile. This necessary protection is referred to as liability coverage, and has specific limits that must be met in order to fulfill the state requirements.

As of January 1st, 2011 all motorists must maintain bodily injury liability of at least ,000 for one person, ,000 for two or more people involved in a single accident, and ,000 for property damage liability. Having these forms of protection in place means that in the event that the insured motorist causes an accident, the medical bills and property damage of the third party individuals whom the driver struck will be paid for by the motorist’s insurance company up to the previously mentioned amount.

Residents are required to purchase Texas liability insurance to meet the state’s requirements of being financially responsible in the event of an accident. Even if such policies were not required by law, residents would still be strongly encouraged to purchase coverage in order to protect themselves financially following a traffic collision.

The Importance of Liability Insurance in TX

The purpose of liability insurance is to ensure that a driver is financially responsible for damage that they may cause another motorist, but it is also present to protect the driver from a possible financial disaster. If a motorist did not have such coverage and struck another vehicle, then all of the damages that they caused to the third party driver may have to be paid out of pocket, which could quickly amount to thousands of dollars. If a Texas resident is caught without this coverage there can be repercussions as well. A first time offender may have to pay between 5 and 0, while a second offense could amount to a fine of 0 to ,000 and the suspension of the resident’s driver’s license, in addition to the possibility of having their automobile impounded.

To avoid such repercussions, motorists are encouraged to acquire the proper amounts of coverage, and to even explore the idea of increasing their liability coverage. Although the state requirements are adequate for most situations, each and every accident is unique in damages and potential costs, and because of this there remains a chance that a driver could be caught off guard. If a driver is involved in an accident in which they are at fault and cause more than ,000 worth of damage to an automobile of the person they struck, then the third party motorist has the option of suing the offending driver for the remaining property damage costs.

Increasing ones liability limits beyond the state requirements decreases the likelihood of being involved in a lawsuit and having to pay various expenses out of pocket. Often, this can be accomplished with only a minimal increase to one’s policy rates, with the subsequent increase in protection being well worth the increased price. To help ensure that residents are knowledgeable about the various requirements, TX publishes and updates a guide detailing auto insurance coverages which describes many of the finer points of a policy, which could in turn explain the importance of having an adequate amount of coverage.

Source: http://www.onlineautoinsurance.com/texas/

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Tags: Insurance, Liability, Texas, Understanding