Texas Minimum Auto Coverage Increases

Hey, Texans…the minimum amount of auto insurance coverage that Texans must have will be going up in 2011.

Coverage limits have been increased because liability limits will not cover all expenses after an accident, according to the Texas Department of Insurance.  According to industry data provided by the department, about 50% of vehicles in Texas are minimally insured with liability coverage, and about 1 in 5 vehicles are uninsured.

Prior to this change, Texas law requires that drivers have minimum liability limits of $25,000 for each injured person, $50,000 per accident and $25,000 for property damage per accident. It's commonly referred to as “25/50/25” coverage.

In 2011, the coverage minimums become $30,000 for each injured person, $60,000 per accident and $25,000 for property damage.

The state requires drivers to carry liability insurance to pay to repair or replace the vehicle of the person who is not at fault in an accident. It also covers at least a portion of the medical expenses of the driver who is not at fault. It does not pay to repair or replace the at-fault driver's car or to treat the at-fault driver's injuries.

The coverage amounts of 30/60/25 will be the minimum coverage required by law; however, sometimes the minimum is not enough.  In Texas, if you cause the damage, then you pay the bills.  If you don’t carry enough insurance to cover the costs (like causing a multi-car collision or one involving medical injury), then the costs above your insurance coverage will come out of your own pocket!!!  Carrying low liability limits can reduce your monthly bill, but it also increases your risk.  If you have retirement savings or college education funds saved up, you don’t want to lose your life savings as a result of a mishap on the highway (or those crazy deer!).   

Accidents can happen at any time.  Make sure you are not taking on too much risk and have the right insurance coverage to protect your family.

If you have questions, please e-mail me at csimpson@farmersagent.com or call me at 512.686.2904.  I will be happy to review your policy and provide free professional advice on coverage levels for you and your family.