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:
Example:
Let’s say you’re driving down the road and look down for 3 seconds and end up rear ending a $55,000 Chevrolet Suburban that has been pulled over and that Suburban gets pushed into on coming traffic. The vehicle you accidentally tapped is now being hit head on by a large truck and the 2 people in the car you end up incurring $140,000 worth of medical bills. In this case, if you only have the state minimum liability limits of 30/60/25, your policy will pay $25,000 for the car, and $30,000 for each person’s bodily injuries and $60,000 total. Since the policy only pays $25,000 for the other driver’s car valued at $55,000 you would be on the hook for the $30,000 difference AND the $80,000 in medical bills that were not paid.
Do you have an extra $110,000 in your checking account?