Which law in Texas mandates that everyone must carry liability insurance?

The correct answer is rooted in the Safety Responsibility Act, which is a significant piece of legislation in Texas that requires drivers to have liability insurance. This law was enacted to ensure that drivers are financially responsible for any damage or injury they may cause in an accident. By mandating that everyone carries liability insurance, the act serves to protect both the individuals involved in a collision and the broader community by promoting accountability on the road.

Liability insurance is essential because it covers the costs of bodily injury and property damage that you may be responsible for if you are at fault in an accident. This not only secures your own financial well-being but also ensures that victims can receive compensation for their losses, facilitating a smoother recovery process.

In contrast, the Vehicle Registration Act primarily concerns the procedures and requirements for registering a vehicle, rather than insurance mandates. The Texas Insurance Code encompasses a broader range of regulations regarding insurance practices but does not specifically mandate liability insurance coverage for drivers. Lastly, the Motor Vehicle Safety Act deals with safety standards and regulations for vehicles but does not address the insurance requirements. Thus, the Safety Responsibility Act distinctly stands out as the law that specifically mandates the requirement for liability insurance in Texas.