Driver’s License Suspension: How an Insurance or Subrogation Company Can Suspend Your Texas License
If you have a Texas driver’s license and someone called you or sent you a letter threatening to have your driver’s license suspended for a car accident, it’s very possible that it really will happen, but it’s just as likely that the person who made the threat in 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 doesn’t call people to tell them about a pending suspension, they will send you a written notice). What an individual, insurance company, or subrogation can do is apply to have their license suspended under Chapter 601 of the Texas Transportation Code, and there are many exceptions and rules that must be followed (it is notable that 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 registration as well).
If the caller is an insurance company or subrogation firm, they probably know how to get you suspended and don’t need to be sued. 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. Regardless, the no-claims suspension of a Texas driver’s license is what this article is about, so here are some of the requirements your case will need to meet in order for your license to be truly in jeopardy: Texas Financial Safety and Responsibility has stringent 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 path (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 filing a report that you hit someone from behind, or there are witnesses against you). This is the most complicated part, because there are 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 making it clear by your actions that it was okay.
Please note that the rules I am passing on only apply to Texas and “financial responsibility law” violations. If all of these factors apply to you, your license will likely be suspended if the party threatening to take 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 unlucky enough to be involved in an accident that was probably your fault, and if you didn’t have insurance or some other way to comply with the financial responsibility law, then you have few options. Are here:
1. Pay for damages.
2. Most companies will accept less than they ask for if you can pay a lump sum, so if you have a little money, try to settle for less than the amount of the alleged damages.
3. Reach a payment agreement with the insurance company, subrogation firm, or person who is threatening you (it must be a written agreement that the State will agree to in order to adequately protect your license).
4. Fight over whose fault the accident was. To do this, you must follow the rules for requesting a hearing when you receive your first notice of suspension (it’s 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 you have a time limit for requesting a hearing).
5. If you owned the vehicle that was involved in the accident, and the person who wrecked your car did not have permission to use your vehicle, then fight about it (again, you have to use the fight hearing rules).
6. Always make sure you have researched all possible avenues of insurance. Sometimes, he might be covered and just not realize it (like he’s a full-time college student and his parents have 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 about the only things you can do to avoid a suspension other than hiring an attorney. Therefore, be careful in assuming that your license cannot be suspended for a car accident (if you did not 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 stopped and do not have a valid license, you can be put in jail. Probably the best (and right) thing to do is work out a payment plan to protect your driving privileges.