Regardless of how safe you try to be on the road, it’s impossible to predict the actions of other drivers. That’s why low cost auto insurance coverage is so important. Texas law requires people who drive in Texas to be able to pay for automobile accidents they cause. Most drivers do this buy buying auto mobile liability insurance.

Low cost Auto insurance pays for damages, injuries and other losses specifically covered by your policy. Coverage’s can vary by policy and company. Read your policy carefully to know exactly what it covers. Pay special attention to the exclusions section, which lists the things your low cost auto insurance policy doesn’t cover. The front page of your policy is called the declarations page, or “deck” page. It contains useful information such as the exact name of your insurance company, your policy number and the amount of each of your coverages and deductibles.

Texas law requires minimum coverage of $20,000 per injured person, up to a total of $40,000 for everyone hurt in an accident and $15,000 for property damage.Low cost auto insurance basic coverage is called 20/40/15. However, basic coverage might not be enough if you are held liable for an accident. You should consider buying more than the basic limits.

Proof of Financial Responsibility

When you buy an Low cost auto insurance auto policy, your insurance company will send you a proof-of-insurance card. You will have to show proof of insurance when

• Are asked for it by a law enforcement officer
• Have an accident
• Register your car or renew its registration
• Obtain or renew your drivers license
• Get your car inspected

There are severe legal penalties for violating the state’s financial responsibility laws. A first conviction will result in a fine between $175 and $350. Subsequent convictions could result in fines of $350 to $1,000 , suspension of your driver’s license and impoundment of your automobile.

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