Mandatory Auto insurance Increase ~ April 1

[TexasRed]

For those of you who may not know, I thought you would be interested. We carry more than minimum .. but heads up

AUSTIN -- Drivers who carry the minimal liability coverage for bodily injury and property damage will be paying higher premiums for a higher level of mandated coverage that goes into effect next month.

"We are estimating that your premiums will be going up 4 to 6 percent if you currently have the minimal liability coverage," said Jerry Hagins, a spokesman for the Texas Department of Insurance. "It works out to about $15 to $22 a year."

The background

Currently, drivers must be covered for at least $20,000 for each injured person in an accident up to a total of $40,000 for everyone injured in the accident and $15,000 for property damage. Under the new rules, which the Texas Legislature mandated last year, the minimal coverage goes to $25,000 per injured person up to a total of $50,000 and $25,000 for property damage

The new rules only apply to liability coverage, which pays others for accidents caused by a driver. The rules do not apply to coverage on any damage done to the driver's own vehicle.

Lawmakers enacted the new law because insurance companies said that lower coverage levels were not always enough to cover the costs of accidents. Most insurance providers have factored in the new coverage levels and the added premium costs when they issued or renewed policies that extend beyond April 1, Hagins said.

Expensive fines

The penalties for violating the state law requiring auto liability insurance are severe. A first conviction carries a $175 to $350 fine. For subsequent convictions, fines start at $350 and can rise to $1,000, plus suspension of a driver's license and impoundment of the vehicle.

What's next?

Starting Jan. 1, 2011, the new law will raise the limit to $30,000 of coverage for each injured person, up to a total of $60,000 per accident.

Drivers will begin to notice the new limits as they renew their auto policies or buy a new policy, but they won't need to take any action unless contacted by their insurance company, Hagins said.

According to the Texas Department of Insurance, the state is also implementing a program to let law-enforcement officers immediately verify whether a driver has the required auto insurance during traffic stops.

Online: www.tdi.state.tx.us

[curley725]

Thanks for the up date TR... We are insured up to our eyeballs and our rates just went down.... :grin:


C

[TexasRed]

Cool. Gotta have as much as you can get as long as we're going to allow illegals to continue driving with none :evil: