Why is Insurance Important?
Most states in the U.S. require their drivers to have insurance. According to the Texas Department of Insurance, the state of Texas requires people who drive in Texas to be able to pay for the accidents that they cause. Most drivers will cover an accident by obtaining auto liability insurance. Liability insurance helps cover costs to repair or replace the other driver’s vehicle, property, as well as, cover medical expenses whenever the accident is your fault. In Texas, drivers are required to have a minimum amount of coverage. This means that their insurance must cover the at least $30,000 for each person injured, up to $60,000 per accident, and $25,000 for property damages that occur per accident. The most basic coverage is called 30/60/25.
What happens if I don’t have Insurance in Texas?
According to Statista, there are an estimated 16 million licensed drivers as of 2014. Texas has one of the highest state populations after California and is much more reliant on our cars compared to other states. If you are involved in a car accident in Texas and do not have insurance, you will have to cover the entirety of the costs if you are found at fault. Not having insurance can decrease your chances of winning a claim because it is seen as driving without regard to your personal safety or highway laws.
Fines and Legal Ramifications of Not Having Insurance:
Texas is pretty strict on drivers who are caught without insurance. The first time you are pulled over without insurance, you can receive a fine between $175-$350. Additional fees will come from the DMV as well. Renewing a license while not having insurance comes with a fine of $250 per year. The first time you are found to be driving without insurance can cost you between $900 and $1100. If you are caught multiple times to be driving without insurance, fines will be between $350 and $1,000 each time. Repeat offenders will have their license revoked and their vehicle impounded. It is tough and costly to come back from being caught without insurance multiple times.
Why Should I Get Insurance?
By having insurance you are helping cover another driver in case you ever make a mistake that causes an accident. While insurance can be expensive for different reasons, in the long run, it is must cheaper than dealing with the fines and suspensions. Having insurance means that you are taking responsibility for the damages you are at fault for.