car insurance texas law
For the first time in 22 years Texans will now need to evaluate their auto insurance policies to make sure your liability limits that meet or exceed the state required minimum auto liability insurance requirements.
Requirements for liability insurance in Texas have just been changed. From today, 1 April 2008, the minimum amount of liability auto insurance Texas drivers will increase from the current $ 20,000 / $ 40,000 / $ 15,000 (20/40/15) coverage to a new requirement for coverage of 25/50/25.
The state of Texas is the Texas test takers with a new program Financial Responsibility Verification this spring that allows police officers and highway patrol to immediately verify whether a driver has auto insurance.
There can be passed by the new requirements Texas liability insurance, and every city and county will be affected by this rate increase.
The new requirements Texas liability insurance are $ 25,000 per person minimum liability for damages resulting in bodily injury to a minimum 50,000 per occurrence for bodily injury. The required minimum property damage has increased to 25,000.
What does this mean in terms simple?
1. 25,000 per person, your company can pay 25,000 for each individual who causes bodily injury through accident and car.
2. 50,000 per occurrence, refers to more than one person suffering bodily injury or because you can be negligent in this single car accident.
3. 25,000 for property damage, points to the amount your company can pay for damage to property caused due to negligence in an accident single car.
Why this change?
In 2007, the 80th Texas Legislature amended the law that stipulates the conditions for liability automobile insurance in Texas. The change was in response to growing concern that the limits to date are insufficient to meet the increased costs of medical and vehicle repair and replacement. The new minimum limits of liability insurance requirements are intended to Texas safeguard the interests of citizens involved in accidents on both sides of the collision.
While the increase may seem exorbitant at face value, in really not much of a blow to the pockets of Texas.
The average person can expect to pay an additional amount in your monthly premiums marginal, and most insurance agencies and the factorization of the types needed to adjust the transition for its customers.
However, he refuses to honor the new Texas minimum liability requirements may result in financial penalties far more costly than an extra ten dollars or less per month.
According to the new state financial responsibility law, the first conviction for failure to update insurance minimum auto liability coverage will result in a fine of not less than $ 175.00 and a maximum of $ 350.00.
For some policyholders, this fine would be more than 3 times the rate increase for the whole year!
Subsequent violations can carry penalties ranging from $ 350.00 to $ 1000.00, the license suspension, and towing and impoundment. This in turn create the need for the dreaded SR-22 and the presentation of even higher rates on your auto insurance.
It is also important to consider that although this setting binding may be inconvenient for some, may be an important wake the others. There are many Texans who unfortunately have not reviewed the liability limits of your car insurance because their policy was originally purchased. Because of this, many of their assets are dangerously at risk if he is found responsible in an automobile accident.
Increased need for liability insurance that protects these assets may have increased in recent years and are vulnerable to loss if a person is governed by its fault.
Please contact your current agency or Texas Auto Home Insurance immediately for a free evaluation of policy present to ensure it meets the minimum requirements for liability insurance and obtain the best price possible for your particular vehicle and lifestyle.
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Article Source: ArticlesBase.com – Texas Liability Insurance Requirements
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