TX DMV Insurance and Financial Responsibility 1 — Questions and Answers
Question 1: What is the minimum liability insurance required to drive in Texas?
- Bodily injury and property damage liability coverage meeting state minimum requirements (Correct answer)
- Only comprehensive coverage
- No insurance is required to drive
- Only collision coverage
Correct answer: Bodily injury and property damage liability coverage meeting state minimum requirements
Texas requires drivers to carry minimum liability insurance covering bodily injury and property damage to others in an accident you cause.
Question 2: What is uninsured motorist coverage?
- Coverage that pays for your injuries when the at-fault driver has no insurance (Correct answer)
- Insurance that covers you when your own policy lapses
- Coverage for vehicles with expired registration
- Insurance for drivers who are not licensed
Correct answer: Coverage that pays for your injuries when the at-fault driver has no insurance
Uninsured motorist coverage protects you when you are in an accident caused by a driver who has no liability insurance and cannot pay for your damages.
Question 3: What happens if you are caught driving without valid insurance?
- Fines, license suspension, vehicle impoundment, and potential jail time for repeat offenses (Correct answer)
- A verbal warning for the first offense
- Only a small fine
- No penalty if you have a valid license
Correct answer: Fines, license suspension, vehicle impoundment, and potential jail time for repeat offenses
Driving without insurance carries severe penalties including fines, license and registration suspension, potential vehicle impoundment, and possible jail time for repeated violations.
Question 4: What is the difference between liability and full coverage insurance?
- Liability covers only damage to others; full coverage adds collision and comprehensive for your vehicle too (Correct answer)
- There is no difference
- Liability is more expensive than full coverage
- Full coverage only applies to new vehicles
Correct answer: Liability covers only damage to others; full coverage adds collision and comprehensive for your vehicle too
Liability insurance pays for damage you cause to others. Full coverage adds collision (accident damage to your car) and comprehensive (non-accident damage like theft or weather) coverage.
Question 5: What is an SR-22 filing?
- A certificate of financial responsibility required after serious traffic violations like DUI (Correct answer)
- A standard insurance policy
- A vehicle registration form
- An emissions test certificate
Correct answer: A certificate of financial responsibility required after serious traffic violations like DUI
An SR-22 is a form filed by your insurance company with the state certifying that you carry the required minimum insurance, typically required after DUI, driving without insurance, or multiple violations.
Question 6: How does an at-fault accident affect your insurance?
- Your premiums typically increase for 3-5 years (Correct answer)
- There is no effect on premiums
- Your insurance is automatically canceled
- Your deductible increases permanently
Correct answer: Your premiums typically increase for 3-5 years
An at-fault accident typically causes insurance premium increases that last 3-5 years, with the amount depending on the severity of the accident and your driving record.
TX DMV Insurance and Financial Responsibility 1
What is the minimum liability insurance required to drive in Texas?