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Texas Car Insurance: Liability Coverage & Requirements

Texas law requires all drivers to have liability insurance. So, it’s important to know what coverage is required by the law and which liability coverage will help pay for the repair of the other driver’s car if you’re at fault for an accident. It’ll also help pay the medical bills of the driver and passengers of the other care if they sustain injuries during the accident.

While collision and comprehensive coverages are not required by law, lenders will most likely require these types of coverage as well. Understanding which coverage the state requires by law will help you decide what policy is best for you.

Is Texas a No-Fault State?

No, Texas is not a no-fault state. In states with no-fault insurance, drivers make a claim with their own insurance company after an accident. However, Texas requires fault insurance to have drivers “pay for the accidents they cause.” Therefore, all drivers in the state of Texas must carry liability insurance to provide coverage for any accidents they might cause. To learn more about no-fault and fault insurance, visit our blog about the subject.

Texas Liability Coverage: The 30/60/25 Requirement

The state requires drivers to have a minimum amount of liability coverage. First, drivers must have $30,000 of coverage per person for injuries up to $60,000 for each accident. Additionally, it requires $25,000 in liability coverage for property damage. These requirements are popularly referred to as 30/60/25 coverage.

Liability insurance covers the policyholder, the policyholder’s family, and people who drive the policyholder’s vehicle with their permission. Some policies have limited coverage and will list the people who are eligible for the insurance.

Optional Texas Auto Insurance

According to the Texas Department of Insurance, there are eight general categories for auto insurance. The TDI encourages drivers to consider buying more liability coverage than what the state requires. This is because 30/60/25 coverage might be too low if an accident is serious or involves multiple cares.

The seven optional types of auto coverage are the following:

  • Collision Coverage
  • Comprehensive Coverage
  • Medical Payments Coverage
  • Personal Injury Protection (PIP)
  • Uninsured/Underinsured Motorist Coverage
  • Towing & Labor Coverage
  • Rental Reimbursement Coverage

The coverages listed above are optional. However, they can help cover the costs associated with lost wages, medical care, vehicle damage, and other costs associated with a car accident. Auto coverage is important. Finding the right policy can make the difference between a partial and full recovery after a serious accident.

Should Drivers Always Accept Claim Settlement Offers?

No, drivers should not accept a claim settlement offer before speaking with an attorney. While insurance is an important part of financial security, insurance companies are businesses focused on paying as little as possible to protect their profits. Therefore, insurance companies have developed a habit of offering low settlements or delaying and denying claims in the hope of pushing a claimant to eventually settle for less.

Receiving help from an attorney means you’re putting someone in your corner to look at the situation with only your benefit in mind. If an insurance settlement offer is unfair, your attorney should be prepared to fight for your compensation in court. At Arnold & Itkin, we’ve won billions of dollars for clients. Our team has seen how a car accident can change someone’s life, and we’ve made it our mission to help clients recover the funds they need to find the best possible path toward recovery.

Call our motor vehicle accident lawyers today for help. We’re ready to provide a free consultation when you call us at (888) 493-1629.


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