In Texas, strict laws apply to purchasing and maintaining auto coverage. The state mandate requires a minimum coverage level based on federal regulations. The laws are a strategy to reduce lawsuits related to auto accident injuries. A local insurance agency provides further details about Auto Insurance in Austin TX for vehicle owners.
What is the Financial Responsibility Law?
The financial responsibility law requires all auto owners to purchase auto liability insurance coverage. The state mandate requires a minimum of $30,000 for individual injuries in a one-victim accident. It pays the maximum of $60,000 for multiple victim accidents. Property damage coverage equates to $25,000 for the total accident.
Maintain Proof of Auto Coverage
It is recommended that the auto owner must have proof of auto coverage in their vehicle. The proof is required at any time that a law enforcement officer stops a driver for any reason. A failure to provide proof leads to a fine for no insurance. The fines equate up to $200 for first-time offenders.
The driver provides proof to the Department of Motor Vehicles when registering a new automobile. The insurance card is required when the auto owner renews their vehicle tags. The Department of Motor Vehicles monitors insurance coverage. A notification is sent to the auto owner if outdated proof of insurance is detected. The auto owner has ten days to provide new proof of coverage. The agency issues administrative fines if new proof isn’t provided.
Lowering Insurance Premiums
All auto owners receive discounts on premiums if they maintain safe driving records. The selection of a higher deductible reduces the monthly payments as well. The age of the driver affects the monthly cost of the coverage. Drivers over the age of twenty-five receive a discount based on their age.
In Texas, auto owners comply with state auto insurance laws to avoid fines. The current laws require at least standard auto liability coverage. The insurance pays for medical costs for victims of accidents caused by the policyholder. Property repair costs are also covered under the policies. Vehicle owners who need more information about Auto Insurance in Austin TX contact Patrick Court right now.