Financial Responsibility Insurance
Motorists in the Lone Star State are required by law to retain financial responsibility when operating a motor vehicle. This means that in the event of an accident, the motorist that is at-fault is responsible for damages done to the other individual's automobile or possible medical expenses. In order to meet these requirements, the majority of vehicle owners choose to purchase automobile insurance. The amount of liability that a resident needs, however, also has a set limit that must be reached. Protection plans must feature minimum liability limits of $30,000 for possible injuries or death to a single person with a total of $60,000 per accident, and $25,000 for property damage liability per accident.

If a motorist is unable to meet the necessary limits required by the state's financial responsibility laws, then there is a possibility of receiving a fine that can be between $175 and $350 for first time offenders, with multiple violations amounting to higher fines or the chance that a motorist will have their driver's license suspended or automobile impounded. In order to remain adequately protected many vehicle owners choose to go beyond the required amount of Texas auto insurance for multiple reasons. In the event that one's liability insurance is not high enough to cover all of the damages in an accident that are caused by the policyholder, then the other driver could potentially sue for any remaining costs. Additionally, the amount of coverage required by the state does not include damages to the insured's own automobile.