You Have Auto Insurance. What Kind of Coverage? How Much?

Posted in Car Accidents on June 15, 2015

When was the last time you reviewed your auto insurance coverage? If you are like most people, it’s not high on the priority list. But when you consider the financial and legal ramifications of being underinsured in the event of a car accident, or the possibility of an accident with an uninsured motorist, suddenly spending a little time on insurance research to make sure you aren’t vulnerable doesn’t sound like such a terrible idea.

It is important to be aware what you are paying for and what your policy actually covers. Texas law requires minimum liability coverage, which is called 30/60/25. This means the limits are $30,000 for each injured person, up to $60,000 per accident, and property damage per accident is limited to $25,000. These amounts are for the other driver and the other driver’s vehicle only; liability insurance does not cover your injuries or your vehicle in the event of an accident. Considering how quickly medical bills can accumulate and how expensive cars are, there is a chance that liability insurance alone might not be enough to cover the other driver’s costs in an accident, and in that situation, the other driver may sue to collect the difference.

Really, when it comes to how much coverage is the “right” amount, there is no “one size fits all” number. Some people would rather spend more and not have to worry about what could happen, while others don’t stress about getting maximum coverage. Really, it is just important to be an informed consumer. Be aware of what your choices are, find out the costs, and then weight your options. It is also wise to talk to an attorney with experience with car accident cases, because they have worked directly with insurance companies. Their knowledge and unique viewpoint could be very informative and helpful with choosing your policy.

Read more about Texas auto insurance here.