Texas Department of Insurance

FOR IMMEDIATE RELEASE

FOR MORE NFORMATION

August 22, 2007

Jerry Hagins or Ben Gonzalez

News Release

(512) 463-6425

New Program Will Allow Officers to Verify Auto Liability Insurance Coverage

AUSTIN - The State of Texas is implementing a new technology program that will allow law enforcement officers to immediately verify whether a person has car insurance.  The days of false proof of insurance cards or dropping coverage after receiving a valid insurance card are numbered!
The new program is expected to be operational in early 2008, only a few months away.
 
The Texas Financial Responsibility Verification Program is a joint project authorized by SB 1670 (79th Legislature) and developed by the Texas Department of Insurance (TDI), the Texas Department of Public Safety (DPS), the Texas Department of Transportation (TxDOT), and the Texas Department of Information Resources (DIR). The goal is to reduce the number of uninsured motorists in Texas, estimated to be between 15-20% of all vehicles on the road. Soon, law enforcement officers and other state entities will have at their fingertips immediate, real-time access to insurance information on a given vehicle and/or driver. 
 
Texas law (the Motor Vehicle Safety Responsibility Act) states that a person may not operate a motor vehicle in this state unless financial responsibility is established for that vehicle. Most people do this by buying automobile liability insurance.  The law currently requires minimum liability limits of $20,000 per injured person, up to a total of $40,000 for everyone injured in an accident, and $15,000 for property damage (known as "20/40/15" coverage).
 
However, those limits will change next year. The 80th Texas Legislature recently amended the law by increasing minimum liability limits to $25,000 per injured person, $50,000 for everyone injured in an accident, and $25,000 for property damage ("25/50/25"), to take effect .  After that date, anyone who purchases or renews their automobile liability policy will need to make sure they meet the new minimum liability limits.
 
If you have established financial responsibility through an automobile insurance policy, your insurance company will report that information to the state.  No action is required on your part unless your insurance company contacts you.  However, you may wish to verify that the Vehicle Identification Number (VIN) physically showing on your vehicle is the same as that shown on both your insurance policy and vehicle title and registration.  Contact your insurance company if you notice any discrepancies.
 
To find out more about the Texas Financial Responsibility Verification Program, visit the TDI Web Resource Page at www.tdi.state.tx.us/auto/frvp.html.   For information about obtaining auto liability insurance, contact TDI at 1-800-252-3439 or visit our website at www.tdi.state.tx.us.

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T E X A S   D E P A R T M E N T   O F   I N S U R A N C E

Public Information Office~333 Guadalupe P.O. Box 149109 Austin, TX 78714

~ph. (512) 463-6425~fax (512) 463-6141~www.tdi.state.tx.us