What is the penalty for driving with an invalid insurance policy in Texas?

In Texas, driving with an invalid insurance policy can result in significant penalties designed to discourage this behavior and promote road safety. The correct response indicates that the penalties include fines, vehicle impoundment, and an increase in insurance rates.

Fines are levied to serve as a financial deterrent against driving without valid insurance, reflecting the seriousness with which the state views this violation. Vehicle impoundment can also occur, meaning that law enforcement has the authority to seize the vehicle being driven without proper insurance, further reinforcing the importance of maintaining valid coverage.

Moreover, individuals caught driving without proper insurance can expect their insurance rates to increase when they seek renewal or new policies, as insurers often view such violations as indicative of higher risk. This multifaceted approach aims to hold drivers accountable and encourages compliance with state insurance laws.

The other potential consequences listed in the options, like a verbal warning, mandatory community service, and a license suspension for a set period, do not adequately address the financial implications and immediate penalties that come from driving without valid insurance in Texas.