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Driver’s License Suspension: How an Insurance or Surrogacy Company Can Suspend Your Texas License

If you have a Texas driver’s license and someone called or sent you a letter threatening to have your driver’s license suspended because of a car accident, it’s quite possible that it actually happened, but it’s just as likely that the person who made the threat in You don’t really understand the rules that apply in Texas. Only the Texas Department of Public Safety can suspend your driver’s license (and DPS does not call people to inform them of a pending suspension, they will send you a written notice). What an individual, insurance company, or surrogacy can do is apply to have their license suspended under Texas Transportation Code Chapter 601, and there are many exceptions and rules that must be followed (notably if you You don’t have a license, a proper application will prevent you from getting one, and the suspension is supposed to affect your record as well.)

If the person calling you is an insurance company or surrogacy firm, they probably know how to get you off the hook and they don’t need to sue you. You may lose your license, registration, and ability to obtain a license even if you have not been sued. If you have been sued for a car accident and lost, 99% of the time you will lose your license and registration privileges until you pay up. The non-demand suspension of a Texas driver’s license is what this article is about anyway, so here are some of the requirements your case will need to meet in order for your license to be in real jeopardy: Texas Safety and Financial Responsibility has tough rules that relate to the ability to suspend an individual’s driver’s license due to a violation of the law, here they are in simple terms:

1. The accident must have occurred on a public highway, road, or pathway (such as an alley) as defined by Texas rules.

2. Someone has to file an accident report, either a police officer or a party involved in the accident.

3. There must be a “reasonable probability” that you were at fault (such as the police reporting that you rear-ended someone, or there are witnesses against you). This is the trickiest part, because there are so many factors that can indicate a failure.

4. There must be bodily injury (any amount) or damage in the apparent amount of $1000.00.

5. If you are the owner of the vehicle, you must have allowed the use of the vehicle, either by saying that the driver could use it or by your actions making it clear that it was okay.

Please note that the rules I am relaying only apply to Texas and “Financial Responsibility Act” violations. If all of these factors apply to you, your license will likely be suspended if the party threatening action follows the proper rules (in Texas) for requesting the suspension. Now what can you do to protect yourself? Are there gaps? My best answer is “more or less”. If you were unfortunate enough to be involved in an accident that was likely your fault, and if you did not have insurance or some other way to comply with financial responsibility law, then you have few options. Are here:

1. Pay for damages.

2. Most companies will accept less than what they ask if you can pay a lump sum, so if you have a little money, try to settle for less than the amount of damages claimed.

3. Reach a payment agreement with the insurance company, surrogacy firm or person who is threatening you (must be a written agreement that the State will accept to adequately protect your license).

4. Fight over whose fault it was for the accident. To do this, you must follow the rules for requesting a hearing when you receive your first notice of suspension (it is also a good idea to make sure the Department of Public Safety has your correct address because they will use the address on your driver’s license for all notices and has a time limit for requesting a hearing).

5. If you owned the vehicle that was involved in the accident, and the person who totaled your car did not have permission to use your vehicle, then fight about it (again, you have to use the hearing rules to fight).

6. Always make sure you have investigated all possible avenues of insurance. Sometimes you might be covered and just not realize it (like if you were a full-time college student and his parents had insurance).

If you (as the owner) or the driver of your vehicle were not financially responsible at the time of an “at-fault” accident, then the above things are pretty much the only things you can do to avoid a suspension other than hiring an attorney. So, be careful assuming your license can’t be suspended for a car accident (if you didn’t have insurance). I can’t tell you how many times I tried to explain this to people and they just didn’t believe me so they ended up with a license suspension and then had to call me to negotiate for their license or risk the consequences. If you are pulled over and do not have a valid license, you can be taken to jail. Probably the best (and correct) thing to do is work out a payment plan to protect your driving privileges.

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