Enrolled Bill Summary

Senate Bill 502	Senate Author:  Averitt
Effective:  9-1-07	House Sponsor:  Smithee

            Senate Bill 502 amends the Transportation Code to increase the minimum amounts of motor vehicle liability insurance coverage a vehicle owner must carry to establish financial responsibility. The minimum liability amount for the bodily injury to or death of one person increases from $20,000 to $25,000 as of April 1, 2008, and to $30,000 as of January 1, 2011. For the bodily injury to or death of two or more persons in one accident, the minimum amount increases from $40,000 to $50,000 as of April 1, 2008, and to $60,000 as of January 1, 2011. For damage to or destruction of property of others in one accident, the minimum amount  increases from $15,000 to $25,000 as of April 1, 2008, with no additional increase in 2011.

            In addition, Senate Bill 502 requires the Texas Department of Insurance to establish an outreach program to inform individuals of the requirements of the Texas Motor Vehicle Safety Responsibility Act, including the financial responsibility requirements through motor vehicle liability insurance coverage.  The bill requires the commissioner of insurance to establish by rule the requirements for the program, which must be designed to encourage compliance with the financial responsibility requirements and be made available in English and Spanish.