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Texas Car Insurance Financial Responsibility

If you are involved in an accident in Texas, as a driver you need to be able to prove financial responsibility for accidents you cause by ensuring that you have Texas car insurance. The laws of the state have set a required minimum amount of liability insurance to reduce the amount of uninsured drivers in Texas.

Financial What?

In Texas, most drivers are able to promptly establish financial responsibility with the purchase of Texas car insurance, or an “auto liability” policy. There are also other means by which one can ascertain financial responsibility in Texas.

Obtaining Texas car insurance from an insurance service provider who is licensed by the state of Texas is one way to ensure financial responsibility. The other possibility involves certifying self-insurance with the Texas Department of Transportation, and requires that you have ownership of a minimum of twenty five vehicles. This is why the latter method is generally only used by vehicle dealerships.

You may also prefer to go the route of making a large deposit to the county clerk, such as money or a surety bond, but this would probably end up being less advantageous financially than simply taking out Texas car insurance.


TexasSure is a verification strategy that has been developed to make tracking Texas car insurance easier for state officials. The TexasSure program involves many agencies, including the state legislators and the Texas Department of Transportation (TDOT).

Based on this verification policy, all Texas car insurance agencies are required to submit insurance information to the Department of Transportation, and do so electronically. This information is then easily accessible by law enforcement officials and the department itself.

The process aims to be so efficient that no further action is required by the driver other than maintaining the minimum Texas car insurance cover on the vehicle. If the Texas car insurance somehow lapses or gets canceled, or any problems are found with the information submitted, the department of transport will get in contact with the individual in question.


There are, of course, penalties for those who fail to maintain the minimum Texas car insurance cover to prove financial responsibility. Among these, the most basic penalty is that your license and registration will immediately be suspended.

Luckily, the state allows for the suspension to be appealed - perhaps you feel that you meet the minimum Texas car insurance requirements and this was a mistake somehow - and you have twenty days in which to take action if you would like to appeal it.

If you do appeal the suspension, the process may be put on hold until everything has been sorted out. If, however, you receive a second penalization, your vehicle could be impounded for approximately half a year. You will then have to pay the state a fee of about $20 per day that your car is impounded. It would thus work out much cheaper to ensure that you meet the basic Texas car insurance requirements.

If you wanted to lift the suspension and re-instate your license and registration, you would have to prove that you now have Texas car insurance and pay the fees for re-instatement that could be as much as $400.