Beginning on April 1, 2008, drivers in Texas who only have the state-required minimum liability coverage will be paying more for their policies, as the required liability amounts are changing.

Currently, drivers in the Lone Star State must carry at least $20,000 of liability coverage for each injured person in an accident up to a total of $40,000, as well as $15,000 in property damage coverage. Next Tuesday, those minimums will go up - the new coverage amounts will be $25,000 per injured person to a $50,000 total, and $25,000 for property damage.

The increase in coverage requirements only applies to liability policies, which cover damage to other people and their vehicles. The increase was approved because of pressure from insurance companies which said existing coverage was often insufficient to cover the cost of accidents. In 2011 there will be a second increase, to $30,000 / $60,000 / $30,000.

Fines for failure to have adequate coverage are fairly stiff. A first conviction will cost from$175 - $350, while subsequent convictions start at $350 fines and can increase to $1,000 plus a suspended license and impounded car.

Says Jerry Hagins, a spokesman for the Texas Department of Insurance, "We are estimating that your premiums will be going up 4 to 6 percent if you currently have the minimal liability coverage. It works out to about $15 to $22 a year."

This liability insurance increase is the first such hike in twenty-two years.