Texas Taking New Approach to Auto Insurance Violators

Audi sports utility vehicleMillions of Texan drivers violate state law by driving without car insurance, and most of these violators aren’t paying surcharges they get slapped with for doing so, according to the Dallas Morning News.

The Morning News reports that nearly two-thirds of the uninsured drivers that have been issued surcharge orders through the Texas Public Safety Commission’s Driver Responsibility Program have not paid up. That amounts to a total of $1 billion in outstanding fees.

In response, the Public Safety Commission is passing on a set of changes to the surcharge system, to be voted on in September, that would establish license reinstatement and payment breaks for violators who have been in default and those who are at or below 125 percent of the poverty level.

The problem of uninsured motorists in Texas has been highlighted in recent years by the TexasSure program, which was created by the state legislature to identify and contact uninsured motorists. The program estimates that more than 21 percent of automobiles statewide are not covered by even a basic liability policy.

The Texas Department of Motor Vehicles says that Texans are forced to shell out $900 million a year because others choose to go without proper auto insurance coverage.

Uninsured drivers are subject to a fine between $175 and $350, according to the Texas Department of Insurance. Multiple offenses can result in fines up to $1,000 and license suspension.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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