Auto insurance is designed to restore any losses to drivers who are involved in an accident in which a loss is sustained. Within the state of Texas, however, there are limits drivers have on auto insurance policies. These limits are designed to promote people to carry some kind of responsibility if they are involved in an accident.
The state of Texas has laws that make drivers carry proof of insurance. The proof of insurance shows that the driver has met the state minimums for bodily injury and property damage, which is set at $25,000 per person, $50,000 maximum, and property damage of $25,000. Drivers are allowed to have higher limits than the state minimums and are often encouraged to do so. If an accident happens the at-fault party is required by law to show proof of insurance.
The higher the limits of liability, the better protected the insured will be. For instance, if an accident has $100,000 in bodily injury and the driver carried only the state minimums then the insured would have to pay the difference between what the insurance paid out and what was left. If the insured did not have enough money to pay the difference then there is a good chance they will be sued for the rest.
Texas also fines drivers for not carrying insurance. A fine, for not carrying the minimum insurance coverage’s, ranges from $175 to $350. If the person is a repeat offender, then they face fines of $350 to $1,000. They could also lose their license and have their vehicle impounded. It is important for drivers to carry some kind of insurance.
Every year thousands of people are involved in a car accident. Some accidents are very costly and others only require small a small amount of money to fix. In some cases the insurance coverage is more than enough to cover all losses, and in other cases it falls short in covering all expenses. So how much coverage is enough for an insurance policy?
There are several things to think about when deciding about the amount of coverage for an auto policy. The first question to ask is “If there was an at-fault accident, what coverages would be enough to cover all the injury and damage that can occur?” In most cases, hospital bills run into the thousands and damages to property can be just as high. The state minimums are set to cover only minor expenses. Most recommendations for liability coverage are around 100/300/100. Some people will often carry the 250/500/100 limits for just a few dollars more. In some states it is actually cheaper to carry the higher coverage limits versus the minimum amounts.
One other thing to consider is “How much physical damage coverage is enough to carry on a personal auto?” The only thing to think about is whether you can handle the deductible amount in the event of a claim. If paying $500 is within your means then you can save a little on the auto premium.
Insurance amounts are designed to protect the policy holder in the event of a claim or loss. If the insurance coverage is not enough to pay all losses then the policy holder can be sued for the rest. Check with an insurance agent for what may be right for you.