Relating to the minimum motor vehicle liability insurance coverage requirement for bodily injury or death or for damage to or destruction of property of others.
If enacted, SB1674 would modify the existing Transportation Code regarding motor vehicle financial responsibility. The proposed changes would raise the minimum required insurance coverage for bodily injury to $50,000 for one person and $100,000 for multiple persons involved in a collision, up from the current $30,000 and $60,000, respectively. Moreover, coverage for property damage would increase from $25,000 to $40,000. These adjustments aim to provide better financial protection for victims of accidents and may lead to higher insurance premiums for consumers.
SB1674 proposes to amend the minimum motor vehicle liability insurance requirements in the state of Texas. The bill aims to increase the minimum coverage amounts for bodily injury or death as well as for property damage that must be carried by drivers starting January 1, 2026. This change reflects a necessary adjustment to ensure that drivers have adequate financial protection in the event of accidents, considering the rising costs associated with medical expenses and property damages over time.
While the bill intends to enhance protections for drivers and accident victims, there may be opposition to the increased costs associated with higher insurance premiums. Concerns could be raised regarding the financial burden on low-income drivers who may struggle to afford the increased minimum coverage requirements. Thus, conversations around SB1674 may involve debates on balancing the need for sufficient insurance coverage against the affordability challenges it may impose on Texas residents.