Texas is a tort state for car insurance purposes, and all drivers are required to have liability insurance coverage in place. Proof of coverage must be produced when:
- an accident occurs
- a driver is stopped by police
- registering a vehicle
- obtaining or renewing a driver’s license
- a vehicle is inspected
The minimum levels of liability coverage for Texas drivers are:
- $30,000 in bodily injury insurance to pay for injury claims made by one person injured in an accident
- $60,000 to pay for all injuries and damages sustained in an accident
- $25,000 in property damage liability insurance to pay for the cost to repair the other driver’s vehicle, as well as public property such as fences, guard rails, sign posts, light stands and mail boxes
Drivers in the state can choose to buy a policy with a higher level of coverage than the numbers listed above. If a serious at-fault accident occurs, it’s very likely that the level of damages caused will be higher than the minimum coverage limits mandated by state law. In that instance, the insurer will pay out up to the policy limit the driver has chosen and he or she is responsible for paying the difference personally.
To avoid having to liquidate assets to pay for these expenses, it makes more sense to buy an insurance policy which can offer a higher level of protection before an accident occurs.