Understanding Texas Auto Insurance Liability Coverage

Texas Auto InsuranceWhen you start comparing Texas auto insurance coverage benefits and rates, you will see the word “liability” listed as one of the coverage benefits. Simply put, liability coverage means that your insurance company will pay for damages to other vehicles or property that were caused by your vehicle.

What is Liability?

The liability portion of your Texas auto insurance is what pays for the repairs to the other person’s car, as well as medical and other expenses, if the accident was your fault or if it occurs in a “no-fault” state.

What is No-Fault Insurance?

A very simple explanation of a “no-fault” state is one in which drivers involved in an accident file claims with their individual insurance companies, no matter who was at fault. Depending on the insurance laws of the 12 states which have no-fault insurance (they’ll be listed later in this article), each driver’s insurance companies pays for their covered driver’s repairs, and in some cases medical expenses and lost income.

No-fault insurance also means that neither driver can sue nor otherwise file a claim against the other person unless or until the costs incurred in the accident have exceeded a certain amount. Then, and only then, can lawsuits or other actions be taken.

What Are The No-Fault States?

The 12 no-fault states currently are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

How Does Liability Coverage Work in Texas?

As you can see from the list above, Texas is not a no-fault state. This means that in most circumstances fault will be placed on one of the drivers involved in an accident, and it is that driver’s liability coverage that will pay for repairs and other expenses to other vehicles.


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