You and your son may want to seek professional advice on this situation from a lawyer in Texas that specializes in this type of law. State laws can differ however in many areas of the US, not only the driver can be sued but also the car owner. This is especially true in these places if you knowingly let your son drive the vehicle which was illegal to be on the roadway due to not having insurance on it, thus being an uninsured car.

Texas law requires people who drive in Texas to be able to pay for any automobile accidents they cause. Most drivers do this buy buying automobile liability insurance. The financial responsibility law in TX requires all drivers to have auto liability coverage to pay for any property damage and injury to others that results from any accidents they cause.

A first offense for driving without insurance can result in a court fine of between $175 and $350. Subsequent offenses can result in court fines up to $1,000, license suspension, and impoundment of your vehicle. In addition, if you are convicted of driving without insurance, you will have to pay an annual surcharge of $250 to the Texas Department of Public Safety (DPS) in order to maintain your Texas driver’s license. The surcharge remains in effect for three years, meaning a first offense could ultimately cost you more than $1,000.

Whether jail time could be a penalty for your son if he does not pay the other driver's insurance company back after they subrogate or sue him is a question that a Houston lawyer can better answer than us. In many states if your son agrees to a payment plan but then does not pay his license would be suspended by the DMV and other penalties may be placed upon him if he did not comply with a court order to repay the insurance company.

In fact, the Texas Department of Insurance notes that the financial consequences of driving without insurance can be severe. They state that if you cause an accident, you will be financially liable for any resulting injuries or property damage. In the event of a serious accident, you could have to pay tens of thousands of dollars out of your own pocket. If you cannot pay the amount you owe, you could be sued, and a court could order that the money be deducted from your current and future earnings.

While the insurance company of the other driver may appreciate that your son took responsibility for the accident and was truthful regarding the incident, it does not necessarily mean that they will be lenient with him. They likely will still subrogate with him (and possibly you as the car owner) for the monies they paid out on his behalf, since he was at fault in the accident.

Your son may want to see if a payment plan can be agreed upon with the insurance company involved so that he can pay an amount each week or month and help him not be totally in a financial bind. Once again we would recommend seeking legal advice on this situation for both you, as the car owner of the uninsured vehicle involved in the accident, and for your son who was driving without insurance and caused the accident.

If you are able to replace your totaled out vehicle, you can obtain Texas auto insurance here with us.