High Cost of Driving Without Minimum Liability Auto Insurance in Texas
Texas law, as the law in most U.S. states requires people who drive, prove that they are financially able to pay for the accidents they cause. Since most people do not have the ready cash to pay for medical expenses and damage to the other person’s automobile, that they are responsible for in an accident, many people carry at least minimum liability auto insurance.
What Are Minimum Coverage Amounts?
To meet the state’s financial responsibility law, you must have a minimum liability auto insurance policy covering $30,000 for injured person, up to $60,000 per accident and $25,000 for property damage per accident. (30/60/25 coverage). Many people meet this potential financial liability with a minimum coverage auto insurance policy.
Many accidents produce financial liabilities for higher amounts than the minimum. It is a good idea to buy auto insurance coverage with higher liability coverage than just the minimum, if you can afford it, because a court will hold you liable for the total amount of damages, even those beyond what your insurance company will pay.
Liability auto insurance covers only the damage done to the other person or their property. Your car is not covered by liability insurance. If you have a newer car or a car on which you still owe money, getting collision insurance to cover your car is a good idea.
High Costs of Driving Without Minimum Liability Auto Insurance
Penalties for driving without adequate liability insurance can be steep:
• First offense: fine of $175 up to $350.
• Second offense: fine of $350 to $1000, suspension of your driver’s license and
impoundment of your car.
• Driving without a license and insurance: $2000 maximum fine, 180 days in jail, or
• Driving without insurance if you cause and accident with injuries or death: $4000
fine, one year in jail or both.
These are just the regulator fines you are charged while driving without minimum liability auto insurance. The injured parties can sue you for a unpaid damage to their automobile, unpaid medical expenses, lost wages and punitive damages. The total amount may end up in the hundreds of thousands of dollars.
Avoid Fines, License Suspension, Jail and Financial Ruin
Accidents happen, so whenever you drive, make sure you have at least the minimum liability auto insurance coverage. The insurance carrier will send you a proof-of –insurance card, which you should carry with you. If you can afford to carry more than the minimum amount required, you can potentially save yourself a lot of stress in the event you cause a serious accident, with injuries or death.
What Liability Auto Insurance Coverage Pays:
• Medical and funeral costs of others injured or killed in the accident.
• Lost wages of other people injured.
• Compensation for pain and suffering of other people.
• Car repair or replacement costs for others damage.
• Punitive damages awarded by a court to the injured party.
Your attorney’s fees will be covered if the injured party sues you, up to a specific amount. If you are jailed because of the accident, most auto insurance policies will cover up to $250 for bail.
The key point to remember is, never drive without minimum auto insurance liability coverage. It is much less expensive than full coverage and most companies will allow you to pay monthly or quarterly for your plan. It is also much cheaper than the fines and penalties for not having it when it is needed.