Car insurance is a valuable protection to have, for yourself and your family. If you don’t have it you’re risking your financial stability, should you have a wreck.
The purpose of car insurance is to protect you from financial loss in the event of an insurable accident. It’s a mutual agreement between you and your insurance company that as long as you pay your premium, they’ll provide you with coverage. Auto insurance is helpful if your car is stolen, damaged after an accident, or if you have medical expenses as a result of an accident.
Purchasing auto insurance is a smart financial move. Also, it’s required by most states that you purchase at least some coverage. This protects you and your loved ones, as well as other motorists on the road with you.
Texas Insurance Requirements
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying automobile liability insurance.
Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in an accident. It does not pay to repair or replace your car or for your injuries. Consider buying other types of coverage – such as personal injury protection or medical payments, collision, and comprehensive – to pay for these expenses.
Most drivers buy liability insurance to meet the state’s financial responsibility law. You must buy at least the minimum amount of coverage. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
Breaking the Law
There are penalties for breaking the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Additional convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your car.
When you obtain an auto insurance policy, your insurance company will send you a proof-of-insurance card. You will need this card to prove that you have insurance when you
- are asked for it by a law enforcement officer
- have an accident
- register your car or renew its registration
- obtain or renew your driver’s license
- get your car inspected. (Source)
Austin is the capital of the state of Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, Austin is the thirteenth most populous city in the United States of America and the fourth most populous city in the state of Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006.  Austin has a population of 820,611 (2011 U.S. Census). The city is the cultural and economic center of the Austin–Round Rock–San Marcos metropolitan area, which had an estimated population 1,783,519 (2011 U.S. Census), making it the 34th-largest metropolitan statistical area in the United States and the fourth-largest in Texas. (Source)