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Release date January 24, 2008

CHANGES IN AUTO LIABILITY INSURANCE

Beginning April 1, 2008

Statewide in Texas - The Texas Department of Insurance is preparing to implement some changes in auto liability insurance.

Effective April 1, 2008, the minimum limits of liability will be increased.

Currently, liability insurance requirements are $20,000 per injured person, up to a total of $40,000 for everyone injured in an accident; and $15,000 for property damage (20/40/15 coverage).

The new amounts are $25,000 per injured person, $50,000 for everyone injured in an accident; and $25,000 for property damage (25/50/25).

According to Gregory Kaderli, local insurance representative with Frantzen, Kaderli and Klier Insurance states, “Most insurance companies will automatically increase a customer’s coverage to meet the new minimum requirements. You should, however, contact your local insurance representative prior to April 1, 2008 to confirm the minimums have been changed on your existing automobile liability coverage”.

Kaderli also pointed out that as a result of the 79th Texas Legislature, law enforcement officers will be using state-of-the-art technology to determine automobile liability insurance.

Currently, the Texas Department of Insurance, along with the Texas Department of Public Safety (DPS), the Texas Department of Transportation (TxDOT) and the Texas Department of Information Resources, is developing a system of real-time insurance information access of all Texas registered drivers and vehicles.

According to Kaderli, at any given time, 20% of drivers on Texas roads are uninsured. The new law will have insurance companies report auto liability information directly to the above departments via computer. Law enforcement and other state agencies will have computer access to this information. Hopefully through this immediate access, state personnel can determine if a driver is insured or not; and if not, take the appropriate action.

Additionally, there has been a problem with outdated, forged or lapsed insurance cards. The new system should help reduce and penalize drivers who are using forged or identification cards that appear current, but are on a cancelled policy.

Kaderli also suggests, “You should verify and confirm the vehicle identification number on your vehicle(s) matches the auto vehicle title and the vehicle’s insurance policy”.

Any discrepancies should be addressed now, either with the County Tax offices, if it involves the vehicle title; or with the insurance agent, if it involves the insurance policy.

Kaderli recommends anyone with internet access visit www.tdi.state.tx.us/auto/frvp.html or enter “Texas financial reporting verification program” into any major search engine.

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Frantzen Kaderli & Klier Ins Agency, Inc.
108 Theodore Specht Drive
P.O. Box 513
Fredericksburg, Texas 78624

Hours: Weekdays, 8:00 a.m. to 5:00 p.m.
Saturdays from 8:00 to 12 noon
Excluding holidays

Phone: 830-997-9531
Toll Free: 1-800-280-9531