Whether you’re new to car insurance or you’ve been driving for years, you still have to abide by Texas law when it comes to purchasing insurance. There are well defined rules about how much coverage you are required to carry and if you don’t follow the law, you will be fined and maybe even lose your license. But what are the “state required minimums” in Texas and is enough coverage to protect yourself and your family?
State Minimums in Texas
Basically, if you live and drive in the state of Texas, you’re required by law to pay for any accidents you happen to cause. The easiest way to do this is to buy what is called “liability” insurance. Liability insurance protects you from costs to repair or replace the other driver’s car or medical bills in the event you are in an accident. If you are found to be at fault, you will be responsible for not only their vehicle, but any major medical bills as well.
In Texas, there are state required minimums for car insurance that must be met. This is to protect the other driver and you if someone were to hit you and cause damage. Currently, the liability amounts are $30,000 for each injured person (up to $60,000 per accident) and $25,000 property damage. In insurance speak, this is called the 30/60/25 rule.
State Minimums are Not Optimal Coverage
Remember, the 30/60/25 rule is required car insurance in Texas, and not optimal. That means that with the high costs of car repairs and medical bills, even with the required liability coverage, you may still owe a significant amount of money out-of-pocket in the event of an accident. And if you are at fault and your liability does not cover the full amount needed by the other party, they have every right to sue you in court for the difference. This means, without the right amount of coverage even one accident could devastate you financially.
Liability Insurance Does Not Cover Your Costs
It’s important to remember when purchasing automobile insurance in Texas that the required liability coverage does not pay for your expenses in an accident. If you are found to be at fault, your medical bills, costs to repair your vehicle, lost wages and other related expenses are not covered under your liability insurance. In fact, you will need to add medical coverage, personal injury protection, collision or comprehensive coverage to get the full benefit from your insurance plan. In some cases, if you still owe money on your vehicle, you may be required by your lender to carry additional insurance to protect your vehicle in the event of an accident.
You have choices when it comes to purchasing the right Texas automobile insurance plan. With options above and beyond the state required levels, you can find an affordable plan to fit both your needs and your budget. Consider giving us a call and get the information you need to make an informed decision. After all, you’ll want to be prepared in the event you have an accident and you certainly don’t want to owe money you don’t have.