Texas: Financial responsibility & insurance — Part 3 Practice Test
Questions in this part include: “Every owner or operator of a motor vehicle in Texas is required to furnish evidence of financial responsibility to whom?” · “Which of the following is an acceptable form of evidence of financial responsibility in Texas?”
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Questions are original and based on the official manual "Texas Driver Handbook" (Revised January 2026), Texas Department of Public Safety (DPS).
All 17 questions in this practice test
Take the test above first, then use this list to study. Tap “Show answer” to see the correct answer and explanation.
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When must a person present evidence of financial responsibility according to the Texas Motor Vehicle Safety Responsibility Act?
- Only when enrolling in a driver education course
- When getting a license, registration, or inspection
- Only when purchasing fuel at a gas station
- Only when renewing a hunting or fishing license
Show answer
Correct answer: When getting a license, registration, or inspection
Evidence of financial responsibility must be presented at the time a person applies for a driver license, registers a motor vehicle, or obtains a motor vehicle inspection report.
Source: Texas Driver Handbook (Revised January 2026), page 18
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Every owner or operator of a motor vehicle in Texas is required to furnish evidence of financial responsibility to whom?
- Only the Texas Department of Motor Vehicles by mail once a year
- A car dealership at the time of any test drive
- Only an insurance adjuster if one happens to ask
- A law enforcement officer or another person involved in a crash
Show answer
Correct answer: A law enforcement officer or another person involved in a crash
Every owner or operator of a motor vehicle in Texas is required to furnish evidence of financial responsibility to a law enforcement officer upon request or to another person involved in a crash.
Source: Texas Driver Handbook (Revised January 2026), page 18
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What must a standard proof of liability insurance form prescribed by the Texas Department of Insurance include?
- Only the driver's Social Security number
- The insurer's name, policy number, and period
- Only the vehicle's odometer reading
- The driver's employment history
Show answer
Correct answer: The insurer's name, policy number, and period
The standard proof of liability insurance form must include the name of the insurer, policy number, and policy period; name and address of each insured; policy limits or a statement of compliance with minimum coverage; and the make and model of each covered vehicle.
Source: Texas Driver Handbook (Revised January 2026), page 18
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Which of the following is accepted as evidence of financial responsibility in Texas?
- A verbal statement from the driver claiming to have insurance
- An insurance binder indicating the owner and/or operator is in compliance
- A copy of the vehicle's registration sticker only
- A letter from a friend vouching for the driver
Show answer
Correct answer: An insurance binder indicating the owner and/or operator is in compliance
An insurance binder indicating the owner and/or operator is in compliance is accepted as evidence of financial responsibility.
Source: Texas Driver Handbook (Revised January 2026), page 18
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A certificate issued by the state comptroller as evidence of financial responsibility must show the vehicle owner has money or securities on deposit of at least how much?
- $25,000
- $30,000
- $55,000
- $60,000
Show answer
Correct answer: $55,000
A certificate issued by the state comptroller must show the owner has on deposit with the comptroller money or securities for at least $55,000.
Source: Texas Driver Handbook (Revised January 2026), page 18
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Which document, issued by DPS, can serve as evidence of financial responsibility by showing a bond is on file for the vehicle?
- A traffic citation receipt
- A learner's permit
- A surety bond issued by DPS
- A vehicle inspection sticker
Show answer
Correct answer: A surety bond issued by DPS
A surety bond issued by DPS showing the vehicle has a bond on file with DPS is accepted as evidence of financial responsibility.
Source: Texas Driver Handbook (Revised January 2026), page 18
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A certificate issued by a county judge as evidence of financial responsibility must show the vehicle owner has cash or a cashier's check on deposit of at least how much?
- $30,000
- $55,000
- $60,000
- $100,000
Show answer
Correct answer: $55,000
A certificate issued by the county judge of a county in which the vehicle is registered must show the owner has on deposit cash or a cashier's check for at least $55,000.
Source: Texas Driver Handbook (Revised January 2026), page 18
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A certificate of self-insurance issued by DPS is available to a person who has more than how many vehicles registered in his or her name?
- 10 vehicles
- 15 vehicles
- 25 vehicles
- 50 vehicles
Show answer
Correct answer: 25 vehicles
A certificate of self-insurance issued by DPS shows the person has more than 25 vehicles registered in his/her name.
Source: Texas Driver Handbook (Revised January 2026), page 18
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Which of the following is an acceptable form of evidence of financial responsibility in Texas?
- A printed photo of the driver's car
- An image of the insurance information on a phone
- A verbal confirmation given over the phone
- A copy of the driver's birth certificate
Show answer
Correct answer: An image of the insurance information on a phone
An image displayed on a wireless communication device that includes the information required in a standard insurance form is accepted as evidence of financial responsibility.
Source: Texas Driver Handbook (Revised January 2026), page 18
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If a driver receives a citation for failing to provide evidence of financial responsibility, on what basis may the court dismiss the charge?
- If the driver pays the fine immediately
- If the driver proves they were insured when cited
- If the driver attends a defensive driving course
- If the driver sells the vehicle within 10 days
Show answer
Correct answer: If the driver proves they were insured when cited
The court may dismiss the charge if the individual provides evidence that a liability insurance policy was in effect when the citation was issued.
Source: Texas Driver Handbook (Revised January 2026), page 18
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What is the fine range for a 1st conviction of driving without sufficient evidence of financial responsibility in Texas?
- $100 to $200
- $175 to $350
- $350 to $1,000
- $500 to $1,000
Show answer
Correct answer: $175 to $350
Table 13 of the handbook shows a 1st conviction results in a fine of $175 to $350.
Source: Texas Driver Handbook (Revised January 2026), page 18
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For a 2nd or subsequent conviction of driving without evidence of financial responsibility, for how many days may the court order the driver's vehicle impounded?
- 30 days
- 90 days
- 180 days
- 365 days
Show answer
Correct answer: 180 days
For a 2nd or subsequent conviction, penalties include license suspension, a fine of $350 to $1,000, and court-ordered impoundment of the vehicle for 180 days.
Source: Texas Driver Handbook (Revised January 2026), page 18
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A driver's vehicle registration or driving privilege may be suspended if a judgment resulting from a crash has not been satisfied within how many days of the judgment?
- 30 days
- 60 days
- 90 days
- 120 days
Show answer
Correct answer: 60 days
Registration, license, or driving privilege will be suspended if a judgment resulting from a crash has not been satisfied within 60 days of the judgment.
Source: Texas Driver Handbook (Revised January 2026), page 19
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After a conviction requiring maintenance of evidence of financial responsibility, for how long from the most recent conviction date must a driver maintain it?
- 1 year
- 2 years
- 3 years
- 5 years
Show answer
Correct answer: 2 years
A driver's registration, license, or driving privilege may be suspended when required to maintain evidence of financial responsibility for two years from the most recent conviction date.
Source: Texas Driver Handbook (Revised January 2026), page 19
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If you are required to maintain proof of financial responsibility for the future, for how many years must that proof be kept up?
- 1 year
- 2 years
- 5 years
- 10 years
Show answer
Correct answer: 2 years
When required, proof of financial responsibility must generally be maintained for 2 years.
Source: Texas Driver Handbook (Revised January 2026), page 19
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When are you required to show proof of financial responsibility (insurance)?
- Only once, when first licensed
- It is never required in Texas
- When police ask, or after a crash
- Only when purchasing a new car
Show answer
Correct answer: When police ask, or after a crash
You must show evidence of financial responsibility to a law enforcement officer on request, to another person involved in a crash, and when you apply for a driver license, register a vehicle, or get a vehicle inspection report.
Source: Texas Driver Handbook (Revised January 2026), page 18
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How may a driver show proof of financial responsibility when needed?
- By verbal statement only
- It cannot be proven
- Only with a bank loan document
- With a liability insurance policy
Show answer
Correct answer: With a liability insurance policy
Accepted evidence includes a liability insurance policy in at least the minimum amounts, a standard proof of liability insurance form, an insurance binder, a surety bond on file with DPS, a deposit of at least $55,000 with the state comptroller or county judge, a DPS certificate of self-insurance, or an image on a wireless device showing the standard insurance form information.
Source: Texas Driver Handbook (Revised January 2026), page 18