Similar to most states in the US, purchasing and maintaining automobile insurance is mandated by law in Texas. Here, the automobile insurance industry is closely monitored and regulated, making sure that consumers are protected and that public safety is ensured. If you are living in Texas, it is important that you have a basic understanding of the laws, rules and requirements related to automobile insurance to make sure that you would be able to make the right decision in choosing which policy would provide the best coverage.  

Liability Insurance

The state law in Texas required drivers to have and maintain evidence that they can be financially responsible in the event of an accident where they are found to be at-fault. For most drivers, this is satisfied by purchasing a liability insurance policy. According to state law in Texas, a liability plan should provide $30,000 coverage for the injury or death of an individual in one accident, $60,000 for the injury or the death of two or more individuals in a single accident and $25,000 for property damage.  

Proof of Coverage

Insurance companies and providers typically issue an insurance card which bears the name of the policy holder, the type and amount of coverage that he or she has and the dates of coverage. Texas drivers are required to keep this with them at all times when driving. In a traffic stop or in an accident, the driver would be required to show it to the police officer. Proof of insurance is also a requirement when you want to register your vehicle, renew your driver’s license and obtain a state inspection sticker.  

Those who are driving without a proof of financial responsibility would be found to be breaking the law and may be subject to penalties. Those who are first-time offenders would be fined $175 up to $300 if they fail to show any proof of insurance. For repeat offenders, their licenses and car registrations may be suspended.  

Understanding the the importance of automobile insurance whether or not you live in Texas is essential so that you would be making an informed decision as to which coverage would best suit your needs. Once you are ready to purchase a policy, you can start your search be setting out to get get an automobile insurance quote in Indiana or in the state you are in from several insurance companies and providers to give you an idea of the options that you have.