Texas law requires that you have auto insurance to operate a motor vechicle. That’s enough to keep the law from nabbing you, but usually not enough coverage with the price of other peoples’ cars these days. If you see a $120,000 Bentley, we recommend admiring it from a very safe distance while driving.
After a home purchase, the second biggest investment most people make are on automobiles. Roughly 25% of all drivers in the state of Texas do not have auto insurance. This is why it is even more important to have your autos insured with the appropriate amount of coverage. If you are involved in an accident, you could be responsible for the damages including car repairs, medical bills, and car rentals. Let the insurance professionals at Ryan Everet Insurance Agency customize a plan that fits your needs and budget.
Explanation of State Minimum Liability Coverage in Texas:
Limits of liability and uninsured/underinsured motorist coverage is expressed as three numbers such as 30/60/25 or 50/100/50 for example. The first number refers to the maximum amount of money (in thousands) your insurance will cover for bodily damage per person in an accident. The second number refers to the maximum amount your policy will cover for bodily injury per accident ( when there are two or more passengers in the car you hit), and the third number refers to the maximum amount of property damage that will be covered. Property damage is mainly to replace or repair the other person’s car but also covers property inside their car that might have been damaged.
The State of Texas currently requires at a minimum that each driver carries 30/60/25 limits of liability, but we recommend higher limits of at least 100/300/100. See why we recommend this below:
Let’s say Joe hits and totals a$35,000 car with three people inside and each person suffers $14,000 worth of bodily damage. In this case, assuming he has minimum liability 30/60/25, his policy will pay $25,000 for the car, and $14,000 for each person’s bodily injuries since the total of the whole accident was $42,000 in bodily injury which is under the $60,000 limit per accident. Since the policy only pays $25,000 for the other driver’s car and the car was a total loss of $35,000, Joe as the insured would be on the hook for the $10,000 difference.
Suppose that the driver and the other two passengers suffered more serious injuries, and the medical costs were $50,000 for each of them. If Joe had chosen the 100/300/100 limits of liability or higher, the policy would pay for each person’s injuries since they were each under the $100k limit and would also pay the total bodily injury of $150,000 for the entire accident since all 3 injuries were under the $300k per accident limit for bodily injury. This is why is it so important to have enough coverage.
Talk with an insurance professional today about what is best for you!