Financial Responsibility

Financial Responsibility refers to the legal obligation under Texas Transportation Code Chapter 601 that every driver must demonstrate the financial ability to pay for damages or injuries they cause in a motor vehicle accident. The most common way Texas drivers satisfy financial responsibility is by maintaining an auto insurance policy with at least the minimum 30/60/25 liability limits. Alternative methods recognized by the state include a $55,000 surety bond filed with the Texas Department of Public Safety, a $55,000 cash deposit with the Texas comptroller, or a Certificate of Self-Insurance issued by DPS for fleets of more than 25 vehicles. Drivers must carry proof of financial responsibility at all times and must present it during traffic stops, crash investigations, and vehicle registration. Failure to provide proof can result in fines of $175 to $350 for a first offense, license suspension, and vehicle impoundment.