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Laws On Suspension And Financial Responsibility Which Concerns Car Insurance In TX

The law concerning privately owned and driven vehicles in Texas was revised in 2006 by the Department of Motor Vehicles (DMV). The purpose of this revision was to intentionally reduce the number of uninsured vehicles and drivers on the Texan roads. Car Insurance in TX has since then made certain that all drivers are liable to have proof minimum financial responsibility cover when on the road.


With the developing of the information technology industry, all Texan insurance companies have real time electronic data exchange with the Texas Department of Motor Vehicles on auto insurance. The DMV is able to check every car and driver’s insurance and suspension status. Texas DMV does this with the help of court and law enforcement personnel since they have direct electronic access to the DMV database where all traffic information and infractions is stored.

Proof of financial responsibility must be produced by the driver if stopped by a law enforcement officer. Financial responsibility is required to show that all persons and property involved are covered in the event of an accident. In Texas, the minimum liability for financial responsibility for every driver is $30,000 for injury or death of one person, $60,000 for the car accident and $25,000 for any property damaged. This money is supposed to be paid to the other parties involved in the accident and not the insured person that is, if he or she is at fault in the accident. Once a vehicles insurance policy has been cancelled, a replacement policy has to be submitted in a period not exceeding 45 days.  If this does not happen, the DMV shall institute an immediate suspension of the said vehicle.

Once you receive a vehicle suspension letter, it is your responsibility as the car owner to surrender the insurance information to the DMV as well as a certain fee that is determined by the DMV of the state. If you do not respond to the letter within the next 30 days, you are in for a different ball game. First of all, if you were at fault in an accident, you will be required to personally pay for the damages. In addition to this, you will be cited by the Texas Department of Motor Vehicles which may result in your motor vehicle being impounded.

A time may come that you are requested to produce additional proof of Car Insurance in TX to the DMV. You will just produce all documents in your possession that show that you have actually paid for cover. If you were arrested on a DUI and have a SR22, avail it for inspection to the law enforcement officer.  If for whatever reason, you are not using your own registered vehicle, you will be required to have an affidavit of non use.  For this information and more, take advantage of the internet by entering your Zip code in this site and stay informed.