If you are a Texas resident or just someone visiting the Lone Star State, you will probably be spending a lot of time in your car.
Texas’ highway system contains nearly 73,000 centerline miles and roughly 180,000 miles of paved interstate highways. Regardless of where you’re going, you will probably need a car to get there.
However, it is an unfortunate reality that driving in Texas can be extremely dangerous. The state leads the nation in traffic fatalities. In 2018 alone, there were 12,161 serious injury collisions reported in the state. Even if you are just taking a quick drive down the street, there is a risk of being involved in a collision with a reckless driver.
If you’re involved in a car wreck, you will want to obtain the insurance information of the other driver involved in the collision. All drivers in Texas must carry a minimum required auto insurance, but what happens if the at-fault driver does not have valid coverage? What if they had insurance but failed to make their premium payment after receiving a notice from their insurer?
This article will discuss lapsed auto insurance and car crashes in Texas. Whether you have been involved in a crash with a driver who has lapsed insurance, or you have expired insurance yourself, this article can hopefully clear up some myths around lapsed insurance coverage.
Auto Insurance Requirements in Texas
Lapsed insurance is exactly what it sounds like: it’s when there is a gap or lapse in your insurance coverage. For example, if you failed to pay your most recent auto insurance premiums after receiving notice from your insurance provider, you could maybe have lapsed insurance.
The Texas Department of Insurance outlines the insurance requirements for Texas drivers. All drivers in the state are required by law to show proof they are able to cover damages in the event of a collision. According to the TDI, the majority of drivers do this by purchasing auto liability insurance. However, the state requires that drivers ultimately carry a certain minimum level of coverage.
So, what is the amount of coverage required under Texas Law? There are three primary coverage minimums, summed up with the 30/60/25 rule.
Under state law, drivers must have at least $30,000 of coverage for injuries per person, up to $60,000 in coverage per collision, and $25,000 of coverage for property damage.
The 30/60/25 rule is the minimum coverage that all Texas drivers are required to have. The TDI elaborates that state drivers should consider purchasing more than just auto liability coverage. For example, if you are involved in a multi-vehicle crash or total another driver’s car, your liability coverage may be insufficient to cover all damages. Liability coverage is required under Texas law, but you are able to purchase additional coverage, including personal injury protection coverage, towing and labor coverage, and medical payments coverage.
It is advised to consult with a qualified car accident lawyer following an injury collision in order to answer any questions and protect your right to compensation.
What Are the Consequences of No Insurance or Lapsed Insurance?
The TDI plainly states that all Texas drivers are required to carry at least $30,000 of coverage for injuries per person, $25,000 of coverage for property damage, and $60,000 of coverage per accident. Unfortunately, the reality is that many drivers in the state fail to meet these legal minimums. Statistics show that an estimated 20% of Texas drivers are uninsured, and lapsed coverage is the same as no coverage at all.
If a Texas driver is involved in a collision and is at fault, he or she will face financial liabilities in two ways, firstly from the victim — and his or her auto insurance provider — and then from the state itself.
There Are Additional Penalties For Lapsed Insurance
If that wasn’t enough, drivers with no insurance or lapsed insurance face multiple penalties and fines. Under Texas law, first-time offenders will face a fine ranging from $175 to $350. However, that’s not all. Drivers without insurance may be given a $250 surcharge on their annual driver’s license fees for the next three years.
However, because these drivers are committing subsequent offenses, the state of Texas may impound a driver’s vehicle or even revoke their license entirely.
Do I Need Uninsured Motorist Coverage in Texas?
It is easy to see why meeting the minimum levels of auto liability coverage is essential. If you don’t get the required coverage, you could be at risk of losing a significant amount of money. If you are a repeat offender, you may even lose your license.
However, what happens if you are involved in a crash with someone who has no insurance or lapsed coverage? Even if you obtain a favorable verdict in court, there is no real guarantee you will recover compensation. You may be entitled to compensation and have no fault for the accident, but you may be frustrated due to limited recovery. Or even worse — you may be unable to collect anything at all from the defendant.
Fortunately, there is a solution. You can purchase uninsured motorist coverage.
Uninsured or underinsured motorist coverage offers additional protection if you are involved in a collision with someone with no insurance or inadequate coverage. This kind of coverage is also applicable if you are injured in a hit-and-run collision.
While this type of coverage is not required under Texas law, insurance companies in our state are required to offer this coverage to drivers in the state.
Houston Car Accident Attorneys
Car crashes only last a few seconds, but they can have lifelong impacts on victims and their families. With the help of one of our Houston auto accident lawyer, you will be able to obtain the settlement you deserve. At West Loop Law and the Law Office of Nhan Nguyen, MD, JD, Nhan Nguyen, Nader Rabie, and our entire legal team treat every case with equal importance and focus on getting the effective results our clients deserve. Contact our law offices today at 713-840-7200 to see how we can help.
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