Category: Insurance Laws

In today’s digital age paper seems to be obsolete. However, up until recently Texas drivers still needed to have a paper document tucked away in the glove compartment in the event that they got stopped or were involved in an accident. The document in question was proof of auto insurance, which is required in the state.

But now drivers can forget about digging around for paper documents or worrying about not having an updated copy on hand. Texas auto insurance is going digital.

All About Senate Bill 181

The vast majority of Texans carry around smart phones, but their auto insurance cards are another story. This led to a lot of unnecessary work for law enforcement. A motorist may have insurance, but without proof on paper officers may have had to right a warning or issue a ticket depending on the rules that regulate their jurisdiction.

But Senate Bill 181 changes all that. Now motorists can look up their auto insurance on their phone and provide that to police officers. The change will make traffic stops easier and more efficient for drivers and officers.

The law went into effect on September 1^st along with a number of other laws passed in the 83^rd legislative session. Though police officers are made aware of new laws before they come down the pipeline, they also have to pass a certification each year on all the new laws to ensure that they understand them fully. This means that motorists shouldn’t have any issues showing proof on their phones.

Concerns Over Counterfeiting

Though the change will make traffic stops much more efficient, some voiced concerns over whether or not digital documents would be easy to counterfeit. Those concerns, however, were quickly put to rest. Officials assured Texans that paper documents were just as easy to fake, if not easier, than a document that would be found on a phone.

Police officers thwart counterfeiting in both situations by running the insurance information through a verification database called TexasSure. The TexasSure Vehicle Insurance verification system was put in place several years ago to better track whether or not a driver actually has insurance.

Unlike some new laws Senate Bill 181 was an easy one to pass. The changes give motorist another option for showing auto insurance, which gives Texas drivers one less excuse to go without it.

Original Source: http://www.mybiginsurance.com/insurance-laws/new-law-makes-easier-texas-drivers-show-proof-insurance

Most states require that drivers have auto insurance, Texas being one of them. The law that outlines this requirement is the Texas Financial Responsibility Law.

It’s important that all Texas drivers fully understand the law and how it affects the insurance they get. Biscoe Insurance Group, Inc has created this 101 to provide an overview of what the law entails – it’s all the need to know info.

Minimum Amount of Coverage

In Texas you are responsible for the damage you cause in an accident. That means every driver has to at least have auto liability insurance. The minimum liability amounts drivers need to purchase can be expressed as 30/60/25:

• $30,000 per injured person
• $60,000 per accident for all passengers
• $25,000 for property damage in an accident

This is an increase over the previous minimum of 25/50/25. The increase was put in place because of the rising costs of medical care and car repairs. Of course, getting insurance that goes beyond these basics is suggested, because anything over the amounts covered by insurance will have to be paid by the driver.

There are fewer accidents today, however insurance costs more. Why? Because repairs are more expensive than in the past. To put it in perspective repairing just one air bag costs upwards of $500. Crash into a luxury car and the property damage can easily go above $25,000. If you’re unfortunate enough to wreck into a Ferrari California the costs average more than $80,000 per accident.

Fines for Not Getting Adequate Coverage

The state has implemented a data system called TexasSure to help crack down on drivers that are either under insured or not insured at all. Here’s how the fines for not having proper insurance break down:

First Offense – $175-350 fine

Second Offense and Beyond – $350-1,000 fine, license suspension and car impound

It’s estimated that the average cost of liability auto insurance in Texas, for new cars with 100/300/50 coverage and a $500 deductible, is just $1,545 a year. Average cost in 2010 on all policies was $1,269. Basic 30/60/25 is even more affordable.

It’s more than a matter of the costs that can be incurred if you get in a wreck without being covered. Liability auto insurance is the law in Texas. Don’t risk the expense and possibility of losing your ability to drive. Get an auto insurance policy and remember 30/60/25.

Image Source: smlp.co.uk on Flickr

Original Source: http://www.mybiginsurance.com/insurance-laws/inside-texas-financial-responsibility-law