Chapter 3: Safety Responsibility
Texas Driver Handbook
Chapter 3: Safety Responsibility
The Liability Insurance Law
The Texas Motor Vehicle Safety Responsibility Act was enacted to ensure all drivers are financially responsible for the death, injury,
or property damage they may cause while operating a motor vehicle. All owners and/or operators of motor vehicles in Texas must
have at least the minimum amount of liability insurance.
As of January 1, 2011, the minimum amount of liability insurance is:
• $30,000 against injury or death of one person
• $60,000 against injury or death of two or more individuals
• $25,000 against property damage
To comply with the Texas Motor Vehicle Safety Responsibility Act, a driver, unless exempt, must maintain liability insurance or be
self-insured under the provisions of the Act. Evidence of financial responsibility must be presented at the time a person applies for
a driver license, registers a motor vehicle, or obtains a motor vehicle inspection report.
Every owner or operator of a motor vehicle in Texas is required to furnish evidence of financial responsibility to a law enforcement
officer upon request or to another person involved in a crash.
Evidence of Financial Responsibility
The following list includes items that will be accepted as evidence of financial responsibility.
1. A liability insurance policy in at least the minimum amounts.
2. A standard proof of liability insurance form prescribed by the Texas Department of Insurance and issued by a liability insurer
that includes the:
a. Name of the insurer, insurance policy number, and policy period;
b. Name and address of each insured;
c. Policy limits or a statement the coverage of the policy complies with at least the minimum amounts of liability insurance
required by this Act; and
d. The make and model of each covered vehicle.
3. An insurance binder indicating the owner and/or operator is in compliance.
4. A certificate issued by the state comptroller showing the owner of the vehicle has on deposit with the comptroller, money or
securities for at least $55,000.
5. A surety bond issued by DPS showing the vehicle has a bond on file with DPS.
6. A certificate or copy of a certificate issued by the county judge of a county in which the vehicle is registered that shows the
owner of the vehicle has on deposit with the county judge, cash or a cashier’s check for at least $55,000.
7. A certificate or copy of a certificate of self-insurance, issued by DPS, which shows the person has more than 25 vehicles regis-
tered in his/her name.
8. An image displayed on a wireless communication device that includes the information required in a standard insurance form.
This option is not acceptable for driver license issuance or examinations.
Failure to Provide Evidence of Financial Responsibility
If an individual fails to provide evidence of financial responsibility when required, he/she may receive a citation. The court may
dismiss the charge if the individual provides evidence that a liability insurance policy was in effect when the citation was issued.
Upon conviction of driving a motor vehicle without sufficient evidence of financial responsibility as required, a driver is subject to
penalties.
Table 15: Penalties for Driving Without Evidence of Financial Responsibility
Conviction
Penalty
1st conviction
A fine of $175 to $350.
2nd conviction and each
subsequent conviction
Suspension of driver license and motor vehicle registration, a fine of $350 to $1,000, and court-impoundment
of the motor vehicle driven or operated by the person at the time of the offense provided the defendant was
an owner of the vehicle at the time of the offense and is an owner of the vehicle on the date of conviction.
The vehicle shall be impounded for 180 days. Before the court orders the release of the vehicle, evidence of
financial responsibility must be presented to the court.
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Chapter 3: Safety Responsibility
Texas Driver Handbook
The vehicle registration, license or driving privilege of a driver will be suspended:
1. Upon conviction of a traffic violation providing for a suspension of a driver license, unless evidence of insurance is presented
to DPS;
2. If a judgment resulting from a crash has not been satisfied within 60 days of the judgment;
3. If an installment agreement arising out of a settlement
of a crash is in default;
4. If, while uninsured, the individual was involved in a crash in which another person was killed, injured, or there was at least
$1,000 damage to a person’s property and there exists a reasonable probability of a judgment being rendered against the driver;
and
5. When required to maintain evidence of financial responsibility for two years from the most recent conviction date. More
specific information about compliance with the Texas Motor Vehicle Safety Responsibility Act may be found online at
http://dps.texas.gov/DriverLicense/sr22InsuranceCertificate.htm. You may also visit any driver license office or write to:
Mailing Address: Texas Department of Public Safety
Enforcement and Compliance Service
PO Box 4087
Austin, TX 78773-0320
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Chapter 4: Right-of-Way
Texas Driver Handbook
Chapter 4: Right-of-Way
At times, a driver must yield to others. There are certain rules to help determine who has the right-of-way; however, if the other
driver doesn’t follow these rules, give him/her the right-of-way. Remember, in every situation, right-of-way is something given, not
taken. All drivers should know and understand the laws that determine who has the right-of-way.
Table 16: Penalties for Failure to Yield Right-of-Way
Offense
Penalty
Driver commits any traffic offense of which failure to yield the right-of-way to another vehicle is an element
and causes bodily injury to another.
A fine of $500 to $2,000.
Driver causes serious bodily injury to another.
A fine of $1,000 to $4,000.
Right-of-Way at Intersections
Intersections Controlled by Signs and Signals
When signs and signals control traffic at an intersection, you must obey them. Know the meaning of each sign
and signal. See Chapter 5 for more information.
Single or Two-Lane Road Intersecting a Multi-Lane Road
If you are driving on a single or two lane road that intersects with a divided road or road with three (3) or more
lanes, you must yield the right-of-way to vehicles traveling on the divided or three (3) or more lane road.
Unpaved Road Intersecting a Paved Road
If you are driving on an unpaved road that intersects with a paved road, you must yield the right-of-way to
vehicles traveling on the paved road.
Intersections Not Controlled by Signs, Signals, Multi-Lanes, or Pavement
When approaching this type of intersection, yield the right-of-way to any vehicle that has entered or is
approaching the intersection on your right. If the road to your right is clear or if approaching vehicles are far
enough from the intersection to make your crossing safe, you may proceed. Since there are not any traffic-
controls at this intersection, make sure there are no approaching vehicles from the left. You may legally have
the right-of-way but be sure the other driver yields to you before you proceed.
Turning Left
When turning left, always yield the right-of-way to any vehicle coming straight through from the other
direction.
Private Roads and Driveways
When entering or crossing a road, street, or highway from a private road, alley, building, or driveway, you must
stop prior to the sidewalk and yield the right-of-way to all approaching vehicles and pedestrians.
T-Intersection
When approaching an intersection of a through street traveling from a street that ends at the intersection,
you must stop and yield the right-of-way to vehicles on the through street.
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