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.
Texas Liability Insurance FAQ
What does liability insurance cover in Texas?
Liability insurance covers the other party’s injuries or property damage in a car accident. Because the Texas liability insurance requirements are $25,000 for property damage and $30,000 per person up to $60,000 per accident, this means that the other party could receive this much (depending on the extent of their injuries and whether the driver purchased additional coverage).
What is the minimum liability insurance coverage needed in Texas?
The minimum requirements for liability insurance in Texas are $30,000 for each injured person (to a total of $60,000 per accident) and $25,000 for property damage. It is important to note that these are the minimum requirements in Texas. You can purchase additional coverage, which would protect you from being held accountable for costs that your insurance policy does not cover. Medical costs and property damage can add up quickly, even in a seemingly minor collision. If you’re leasing your car, the lender may require that you purchase additional coverage.
Is Texas liability full coverage?
Texas liability insurance cannot be considered full coverage it only covers the other party’s injuries or property damage. Full coverage insurance would include state-mandated liability insurance as well as coverage for your vehicle, your medical care, and accidents involving uninsured/underinsured motorists.
What is liability insurance coverage?
Liability insurance covers medical bills, legal fees, and the cost of repairing or replacing property that has been damaged in a car accident. The at-fault party’s liability insurance would cover these costs for any person who suffered injuries or had their property damaged in the accident.
Will Texas liability insurance cover an accident if someone else is driving my car?
Liability insurance coverage in cases involving a borrowed car can be tricky, and insurance companies may get into disputes over who should be responsible for paying medical bills and for property damage. If a friend borrows your car with your permission and causes an accident, their liability insurance should kick in to cover the incident. If your friend borrowed your car but was not at fault, the at-fault driver’s policy should cover the damage. Cases like these are typically resolved on an individual basis, depending on the circumstances.
When do you need proof of liability insurance coverage?
Liability insurance is required in Texas, and this means there are specific circumstances where you will have to provide proof of coverage.
- Registering your vehicle
- Getting an inspection of your vehicle
- Getting pulled over by law enforcement for a traffic violation
Failing to carry liability insurance in Texas can result in license suspension and fines.
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.