TX DMV Insurance and Financial Responsibility 3 — Questions and Answers
Question 1: What is the minimum property damage liability coverage required in Texas?
- $10,000
- $25,000 (Correct answer)
- $15,000
- $20,000
Correct answer: $25,000
Texas requires a minimum of $25,000 in property damage liability coverage per accident.
Question 2: Under the Texas TexasSure program, what is verified when you register a vehicle?
- Your driving history
- Active liability insurance coverage (Correct answer)
- Vehicle inspection status
- Payment of all traffic fines
Correct answer: Active liability insurance coverage
TexasSure is an electronic insurance verification program that confirms active liability insurance during vehicle registration.
Question 3: A Texas driver involved in an at-fault crash that causes $30,000 in property damage but only carries the minimum $25,000 coverage — who pays the $5,000 difference?
- The state of Texas covers the gap
- The at-fault driver is personally liable (Correct answer)
- The victim's own insurance always covers the rest
- No one; the victim absorbs the loss
Correct answer: The at-fault driver is personally liable
When damages exceed your liability limits, you are personally responsible for the remaining amount.
Question 4: In Texas, uninsured/underinsured motorist (UM/UIM) coverage is:
- Mandatory for all drivers
- Optional but must be offered by insurers (Correct answer)
- Only available for commercial vehicles
- Automatically included in all policies
Correct answer: Optional but must be offered by insurers
Texas law requires insurers to offer UM/UIM coverage, but drivers may reject it in writing.
Question 5: Which of the following is a valid way to satisfy Texas financial responsibility requirements WITHOUT buying an insurance policy?
- Paying a $100 annual self-certification fee to TxDMV
- Filing a $55,000 surety bond (Correct answer)
- Showing proof of homeownership
- Completing a state-approved driver safety course
Correct answer: Filing a $55,000 surety bond
A surety bond of $55,000 filed with the county judge is one acceptable alternative to auto insurance in Texas.
Question 6: After a crash, how long does a Texas driver have to provide proof of financial responsibility to investigating officers?
- Immediately at the scene (Correct answer)
- Within 10 days
- Within 30 days
- Within 60 days
Correct answer: Immediately at the scene
Texas drivers must show proof of financial responsibility immediately upon request at the scene of an accident or traffic stop.
Question 7: What is the fine for a THIRD or subsequent no-insurance offense in Texas?
- $500 to $1,000
- $1,000 to $3,500 (Correct answer)
- $350 to $1,000
- $500 to $2,000
Correct answer: $1,000 to $3,500
A third or subsequent conviction for driving without insurance in Texas carries a fine of $1,000 to $3,500.
TX DMV Insurance and Financial Responsibility 3
What is the minimum property damage liability coverage required in Texas?