The state of Texas requires drivers to carry a minimum amount of liability Auto Insurance in Austin TX, but a large number of people choose to ignore that legal requirement. Some 14 percent of Texas drivers don’t bother to follow this law, according to the Insurance Research Council. That amounts to more than 2.5 million people behind the wheel with no liability coverage.
Possible Penalties for No Liability Coverage
Driving without Auto Insurance in Austin TX results in steep and inconvenient penalties if the offender gets caught. The first time someone is cited for this offense, the fine can be as high as $350. The government adds $250 to the resident’s annual driver’s license fee, and this charge must be paid yearly for the next three years.
Texas takes this illegal behavior seriously. A second offense can result in a fine as high as $1,000 and another three years of extra annual fees. Also, the authorities have the option of revoking the license and seizing the vehicle. The owner cannot have the vehicle released until acquiring automotive insurance, and in the meantime, there is a daily fee charged by the impoundment lot.
Bigger Risks
Behaving in this illegal manner has much bigger risks as well if the driver ever causes an accident. Not having automotive insurance doesn’t mean the driver can avoid responsibility for the financial compensation he or she owes the other person for property damage and medical expenses. The other driver may file a lawsuit to recoup the cost of vehicle repair or replacement and other related expenses. A judge might decide that wage garnishment until the debt paid is a reasonable solution.
Taking Financial Responsibility
Driving without liability insurance is not a risk worth taking. It is a fundamental aspect of adult financial responsibility. Someone who has been driving without liability coverage or has considered letting coverage lapse because of high premiums may contact an agency like Perdue Insurance Group for quotes. Independent agents can provide quotes from several insurance companies since they are not affiliated with any one corporation. That helps consumers find the best prices for their needs.
