Customers who are looking for Texas auto insurance coverage should consider the state’s minimum coverage requirements as a starting point when considering how much protection to buy. Insurance companies are required to provide quotes for at least this level of protection to anyone who asks for pricing information, but drivers can choose to buy one with a higher policy limit if they wish.
Why would a Texas auto insurance customer buy a policy with a higher limit than the minimum level of protection required by law? The insurance company will only pay out for damages up to the limit the policyholder has chosen to buy. If the accident causes a level of damages which is above the coverage limit set out on the policy, the at-fault driver is responsible for paying the difference personally.
Ideally, a car insurance customer will buy as much coverage as he or she can afford. Texas follows the tort system for car insurance purposes, and people who have been injured in an accident have the right to sue the at-fault driver to collect damage for personal injuries.
The property damage coverage part of the policy pays for the cost to repair public property damaged or destroyed in the accident. Public property includes items like buildings, sheds, fences, guard rails, and sign posts.
A Texas auto insurance liability insurance policy also pays for legal fees incurred in defending a lawsuit launched by the occupants of the other vehicle.