Is Minimum Liability Coverage Enough?
Texas drivers need to consider whether the minimum liability insurance coverage is enough to protect them financially. In many cases, the legal minimum insurance won’t be enough to cover costs if you cause an accident. If you total someone’s luxury car, for example, their repair costs could easily exceed a $25,000 ceiling.
Risks of Having Only Minimum Coverage
While minimum liability coverage (30/60/25) satisfies Texas legal requirements, it often proves insufficient in serious accidents where medical bills and vehicle repairs can quickly exceed these limits. If you cause an accident with damages exceeding your policy limits, you’re personally responsible for the difference, which could lead to significant financial hardship or even bankruptcy.
Recommended Coverage Levels
Most financial advisors and insurance experts recommend liability limits of at least 100/300/50 ($100,000 per person, $300,000 per accident for bodily injury, and $50,000 for property damage). Consider your assets when determining coverage levels – if you own a home or have significant savings, higher liability limits protect these assets from being seized in a lawsuit following a serious accident.
- The cost difference between minimum coverage and recommended higher limits is often relatively small.
- Higher limits provide better financial protection against lawsuits and medical bills.
- Make sure to assess your financial situation when choosing coverage levels.
