Texas Driver Handbook 2017

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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