Not having insurance for a rental car will probably be pretty costly for your friend since it is likely that the rental car company will require her to not only pay for the cost of repairs but also for the rental monies lost while the car is out of commission.

It is unfortunate that the at-fault party in the accident also did not have insurance since instead of being able to make a claim with that person's insurance company for the damages she will have to get that person to pay personally, which may include taking the person to court if they do not willingly pay.

Up until March 31, 2008 Texas law requires minimum coverage of $20,000 per injured person, up to a total of $40,000 for everyone hurt in an accident, and $15,000 for property damage. This basic coverage is called 20/40/15 coverage.

Effective April 1, 2008, the minimum coverage amount required by the state's financial responsibility law increased to $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage. This new basic coverage is referred to as 25/50/25.

There are severe legal penalties for violating the state's financial responsibility laws. A first conviction will result in a fine between $175 and $350. Subsequent convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your automobile.

TX Transportation Code Chapter 601 contains the Motor Vehicle Safety Responsibility Act where you can look for more information about the penalties for driving without insurance and for being in an accident as an uninsured motorist.

The TX Driver Responsibility Program (DRP) requires the Department of Public Safety (DPS) to assess surcharges based on certain traffic offenses. This program does not replace other administrative suspension, or revocation actions that result from these same convictions. The surcharges assessed for this program are in addition to other reinstatement fees required for other administrative actions.

The DRP assessment for failure to maintain financial responsibility on a vehicle the driver responsible will incur a surcharge of $250 each year for 3 years.

To find out for certain what all penalties your friend may incur due to driving without insurance and being in an accident she should check with the TX DPS. If the at-fault driver does not pay for the damages to the rental car then she may also want to seek legal advice.

Get a Texas auto insurance quote here.