For residents of the state of Texas, SR22 insurance is an essential part of ensuring financial responsibility when driving. Required by the Texas Department of Public Safety, this type of insurance serves as a guarantee that a driver has the minimum amount of liability coverage necessary to operate a vehicle legally. This article will provide an overview of what exactly SR22 insurance is and will discuss the minimum liability coverage requirement for it in Texas.
SR22 insurance, also known as ‘Financial Responsibility Insurance’, is essentially a form of automobile insurance that provides assurance to the Texas Department of Public Safety (TXDPS) that you are financially responsible for any damages resulting from an auto accident or traffic violation. It guarantees that if you are ever found liable for damages caused by your vehicle, the policyholder’s insurer will cover up to the limits specified on their policy.
In order to obtain SR22 insurance in Texas, drivers must provide proof of financial responsibility in one or more forms: liability coverage through an automobile insurance policy; surety bond with a licensed bail bondsman; cash deposit with TXDPS; or certificate/letter from TXDPS-authorized self-insurance program. All SR22 policies must meet minimum liability requirements established by TXDPS, which include bodily injury and property damage per occurrence limits of no less than $30,000/$60,000/$25,000 – meaning there is $30,000 in bodily injury coverage per person and up to $60,000 total per accident and $25,000 in property damage coverage per accident. These limits are only applicable if multiple people were injured or property was damaged during an accident involving your car – regardless of how many people or how much property was damaged. However, if only one person or property was damaged, then only that individual/property would be covered under these limits.
In addition to meeting these minimum limits set forth by TXDPS all SR22 policies must include uninsured/underinsured motorist (UM/UIM) bodily injury coverage at least equal to the same limits as liability coverage – meaning if you are ever involved in an accident with someone who does not have enough (or any) auto insurance, then this portion of your policy will kick in. UM/UIM covers medical expenses resulting from injuries sustained in an accident where another motorist is at fault but either has no coverage or insufficient coverage to pay out benefits completely. An important thing drivers should note, however is that while they are required to carry at least this minimum limit on their policy, they can elect to purchase even higher levels if they so choose – which may end up saving them thousands down the line should they ever need it.
In summary, all drivers looking for SR22 insurance in Texas must comply with maintaining specific minimum levels of liability and UM/UIM coverages as mandated by TXDPF – which includes Bodily Injury Liability Coverage up to $30k/$60k and Property Damage Liability Coverage up to $25k per occurrence and Uninsured/Underinsured Motorists Bodily Injury Coverage up to those same levels ($30K/$60K). It is important that drivers make sure these basic requirements have been met before obtaining a policy so as not only to remain compliant but also to ensure they have adequate protection while on the road.