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Texas Financial Responsibility Verification Program (FRVP) - Consumer Information Page

This page is designed to assist consumers with information and questions related to the Texas FRVP.

What is Financial Responsibility, and What Does Texas Law Require?
The Texas Motor Vehicle Safety Responsibility Act, in Transportation Code 601.051, states that a person may not operate a motor vehicle in this state unless financial responsibility is established for that vehicle. Transportation Code 601.002 defines financial responsibility as the ability to respond to damages for liability for an accident that arises out of the ownership, maintenance, or use of a motor vehicle. Most people do this by buying automobile liability insurance as allowed by Transportation Code §601.051(1). Texas law, under Transportation Code 601.072 currently requires minimum coverage 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. This basic coverage is called 20/40/15 coverage. On April 1, 2008, the minimum required liability limits increase to $25,000 per injured person, $50,000 for everyone injured in an accident, and $25,000 for property damage (25/50/25).

What is the Financial Responsibility Verification Program?
The “Financial Responsibility Verification Program” (FRVP) was created by the 79th Texas Legislature, Regular Session, in Senate Bill 1670, which added Subchapter N, Chapter 601 Transportation Code. Section 601.452 of the Transportation Code, as added by SB 1670, provides that the Texas Department of Insurance (TDI), in consultation with the Texas Department of Public Safety (DPS), the Texas Department of Transportation (TxDOT) and the Texas Department of Information Resources (DIR) “shall establish a program for verification of whether owners of motor vehicles have established financial responsibility.”

Pursuant to SB 1670, the established program is designed to reduce the number of uninsured motorists in this State; operate reliably; be cost-effective; sufficiently protect the privacy of the motor vehicle owners; sufficiently safeguard the security and integrity of information provided by insurance companies; identify and employ a method of compliance that improves public convenience; provide information that is accurate and current; and be capable of being audited by an independent auditor.

FRVP users include the DPS, sheriffs, local police, vehicle registration offices, and vehicle inspection stations. These users will be able to obtain accurate and timely insurance information on a given vehicle and/or driver promptly upon request. For example, after the system is implemented law enforcement officers will be able to electronically confirm whether or not a registered vehicle or motorist has insurance coverage in effect.

About the Vendor
TDI, in conjunction with TxDOT, DPS and DIR, awarded the contract for the program to HDI Solutions, Inc. HDI Solutions and its partners TransCore L.P., Insure-Rite, Inc., and Verification Solutions have developed similar database programs in other parts of the country.

Why is the State checking my insurance coverage?
The uninsured motorist rate in the State of Texas is estimated to be approximately 20%. Nationally, it is estimated between 5 to 30%. More than thirty (30) other states have implemented insurance verification programs that have successfully reduced the numbers of uninsured motorists. It is anticipated that this program will significantly lower the uninsured motorist rate in Texas.

Is my personal information protected?
Yes, access to your personal information is restricted by the Driver Privacy Protection Act and various Texas statutes. It will not be used by this program for any purpose other than verification of financial responsibility. It will not be sold or made available to any third party for any other purpose. Security measures are in place to assure that your personal information is physically protected or electronically encrypted at all times. HDI Solutions, Inc. has a 25 year history without any security or confidentiality breaches.

Do I need to do anything to participate in the Program?
Normally, no. If you have established financial responsibility through an automobile insurance policy, your insurer will report that information for you. However, if a discrepancy exists in matching your insurance records to vehicle records maintained by TxDOT, your insurer may need to contact you in order to resolve the discrepancy. If you receive such a notice, you should review the information stated in the letter and follow the instructions for possible correction of the problem.

What are the penalties for not having insurance?
Texas law provides severe penalties for violating the state’s financial responsibility laws. A first conviction may result in a fine between $175 and $350. Subsequent convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your automobile (http://www.tdi.state.tx.us/consumer/cb020.html). The law requires “the motorist or operator of a vehicle to provide evidence of financial responsibility”; the Texas FRVP does not alter this responsibility.

What type of vehicles will this program be looking at?
This program will initially only attempt to verify financial responsibility on vehicles insured under a personal automobile insurance policy. However, there are significant differences in the way vehicle records and insurance policy records have been compiled. For that reason, it may not always be possible to distinguish commercial automobiles from personal automobiles. As a result some insurance companies may report information on vehicles covered by a commercial policy.

Any vehicle that is subject to on-road use must meet financial responsibility requirements. The law requires insurance “on all vehicles, except trailers and semi trailers, registered for on-road use” with some limited exceptions. Those exceptions are not stated by vehicle type, but by the manner in which the vehicle is registered and used. The general rule of thumb is that if your vehicle is used on the road it must be registered with TxDOT and therefore financial responsibility must be met.

What can I do to prepare for the program?
No action is required on your part unless you have been contacted that a problem exists in verifying your insurance. If that occurs, you will be given guidance as to how to resolve the problem.
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/registration.

I found an error on my insurance policy – what should I do?
If you find an error in the personal or vehicle information maintained by your insurance provider, you should contact them to correct it.

I found an error on my vehicle registration or vehicle title – what do I do?
Please visit TXDOT’s webstite at http://www.txdot.gov/services/vehicle_titles_and_registration/insurance_verification.htm and follow the “steps to take”link at the bottom of the page. You may also contact TxDOT at (512) 465-7611 and ask for assistance to correct a title or registration problem regarding the financial responsibility verification program.

Will I be able to check that my own information is correct?
This is not a feature of the program at this time. However, you can always contact your agent or insurer to determine whether the information that they have for you is accurate and correct. Additionally, the state and vendor have established a data clean-up phase prior to the full implementation of this program. You may receive a notice from your insurance company alerting you to a problem with matching your insurance information to a registered vehicle. If you receive such a notice, you should review the information stated in the letter and follow the instructions for possible correction of the problem.

Can I check to see if another driver has valid insurance?
No, this is not a feature of the program.

Will I still need to carry my proof of insurance card?
Yes. While the objective of this program is to provide accurate and timely proof of insurance via an electronic database system, it is still required by law (601.053 of the Texas Transportation Code) to make available current effective paper proof of insurance upon request.
If I forget my proof of insurance card, will an officer be able to confirm my insurance with this program and therefore not issue a ticket?
The law requires “the motorist or operator of a vehicle to provide evidence of financial responsibility,” and the Texas FRVP does not alter this responsibility. This program is designed to detect whether a registered vehicle and/or motorist is shown as being covered under a current automobile insurance policy. However, it will be up to the individual law enforcement officer to determine if the program provides sufficient proof of insurance in the absence of a proof of insurance card.

How is this program going to help lower the uninsured motorist rate?
This program will help identify drivers who cancel their policies after their vehicle has been registered and inspected or who present fraudulent proof of insurance cards.

How can I make sure my insurance company is complying with the requirements?
TDI will be monitoring each company that writes auto liability products in Texas to ensure they are compliant with the requirements.

When will this program go into effect?
The program will undergo extensive testing of data matching and accuracy in 2007. Following a successful test phase, it is anticipated that the program will be operational early in 2008.

Where is the money coming from to pay for this program?
Project funding is derived from fees collected under Texas Transportation Code,Section 502.1715

Obligations under Louisiana Law

Under Louisiana law, you must carry liability coverage on any automobile you own. This coverage pays for property damages or personal injury for which you may be legally responsible, up to your policy limits dollar limits. In Louisiana, each vehicle is required to have 10/20/10 liability limits. Those limits provide payments of $10,000 for bodily injury to one person, $20,000 for bodily injury to more than one person in a single accident, and $10,000 coverage for damage to someone elseÕs vehicle or other property.