Your Guide To Automobile Liability Insurance In Texas
There are many types of coverages available in the typical auto policy in Texas, but only liability insurance is mandated by law. Failure to carry this coverage can result in stiff fines and possible loss of your driver's license for an indefinite time period.
Liability insurance covers damages to the other guy when you are involved in an accident that is your fault. It does not provide any coverage to you, which is why obtaining other coverages as discussed in my other articles is so important.
If you cause an accident, liability insurance pays for the other party's personal injuries and property damage. If you cause an accident and do not carry liability insurance, not only can you be sued for damages, but DPS may also take away your license indefinitely, until you either settle with the other party or work out a payment plan to pay for their damages. This is above and beyond any fines you may receive for not having this minimum coverage. As you can see, it can be very expensive and inconvenient to fail to carry this coverage.
How much liability insurance do you need?
Texas law currently requires a minimum of 30/60/25. That means $30,000 per person and $60,000 per accident for bodily injuries, and $25,000 per accident for property damage. These minimum limits will keep you in compliance with the law, but they may not be sufficient to cover all damages.
With health care costs and the price of automobiles what they are today, it doesn't take a catastrophic accident to cause damages which exceed these limits. If you cause damages in excess of these limits, you could be sued for the difference.
You may be surprised at how reasonably priced additional coverage can be. Check with your insurance agent for specific quotes. I recommend limits of 50/100/50 as more realistic figures for this day and age.