Texas auto insurance coverage limits should be set at a level that adequately protects the policyholders’ assets. The state has set a minimum level of protection that all drivers must have in place to comply with state laws. A person who has recently obtained a license and/or has few assets to protect may want to buy a basic policy which has this low level of protection, but as he or she accumulates more assets the level of coverage should be increased.
Liability insurance coverage is used to pay for claims made for personal injuries and property damage by the occupants of the other vehicle when an accident occurs. If the amount of available coverage is not high enough to pay for the cost of medical bills and rehabilitation expenses, lost wages and property damage following an accident, the at-fault driver is required to make up the difference personally.
The minimum level of protection required under TX state law is $30,000 to compensate one accident victim and $60,000 to pay for all injuries from the same accident. Property damage coverage of at least $25,000 must also be put in place. Choosing a policy with a higher limit for liability protection is a good strategy for Texas residents. The higher the level of coverage that the driver has in place, the better the level of protection if he or she is involved in an at-fault accident.