Automobile Insurance

In most states the lien holders will demand you carry coverage for the vehicle you drive so they are not at a loss if the vehicle should be damaged in an accident. If you own your car you are not recommended to carry Comprehensive coverage for your vehicle, but it is recommended to protect yourself.

The penalties for not having insurance in the State of Texas are clear. First Time offenders will receive fines up to $350. Depending on the County your vehicle can be towed. The fines can double and triple on 2nd and 3rd offenses. And a 3rd offense could also mean a license suspension.

“Failure to maintain financial responsibility” will require you to pay a surcharge for up to 3 years to the State of Texas for the violation. What this means is you will have to pay an additional fine every year for 3 years. These are very expensive fines.

Texas works with a point system which tracks all of your driving history and calculates it to weed out bad drivers. Too many points you lose your license. In turn you pay higher surcharges and your insurance rates could skyrocket. So as you can see it is very smart to maintain automobile insurance for multiple reasons.

Driving in many States without auto insurance can cost you hundreds of dollars. In Texas particularly it can also cost you time off work, your license and even jail time. Before you can even register your car with the State of Texas you must have proof of insurance.

Auto insurance pays for damage and medical expenses due to an automobile accident. Each state has minimums of what coverage you must have on each vehicle. Texas says you must have at least a 25/50/25.

They say you must carry at least $25000 in coverage for bodily injury or death to one person per accident.

$50000 for two persons. And last but not least, $25000 to damage or destruction to property per accident. Adding coverage to protect yourself is up to you.

The amount the states require will not protect you if you are found to be at fault. Many insurance companies recommend higher limits to protect you. If the accident is settled at a much higher cost then what you have coverage for you are still responsible for payment out of your pocket.