The minimum amount of automobile liability insurance Texas drivers are required to carry for bodily injury/property damage will increase on April 1 from $20,000/$40,000/$15,000 (20/40/15) coverage to 25/50/25 coverage, according to the Texas Department of Insurance.
The current minimum liability insurance required is $20,000 for each person injured in an accident, up to a total of $40,000 for everyone injured in an accident, and $15,000 for property damage per accident. The limits increase April 1 to $25,000 of coverage for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.
The the financial responsibility law was amended in 2007 to increase auto liability limits amid concerns that the current limits aren’t enough to cover the costs of an accident resulting in severe injury or major vehicle damage. The limits increase again on Jan. 1, 2011, to $30,000 of coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident (30/60/25).
Drivers carrying minimum limits will notice the change as they renew their auto policies or buy a new policy.
Penalties for violating the financial responsibility law: A first conviction will result in a fine between $175 and $350. Subsequent convictions could bring fines of $350 to $1,000, license suspension and vehicle impoundment.
Texas also implements the Financial Responsibility Verification Program this spring that will allow law enforcement officers to immediately verify whether a driver has car insurance.
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