Orlando Harmon
Auto liability insurance in Texas is a type of insurance that covers the cost of damages and injuries to other vehicles and drivers in the event of an accident. This insurance is required by state law, and drivers must carry a minimum amount of liability insurance to legally drive in the state. The minimum requirements, often referred to as 30/60/25 coverage, include $30,000 in bodily injury coverage per person and $60,000 per accident, as well as $25,000 in property damage coverage per accident. This type of insurance only covers the costs associated with the other driver and their property in an accident and does not cover the policyholder's medical bills, lost wages, pain and suffering, or repair or replacement costs for their vehicle.
| Characteristics | Values |
|---|---|
| Bodily injury liability coverage per person | $30,000 |
| Bodily injury liability coverage per accident | $60,000 |
| Property damage liability coverage per accident | $25,000 |
| Medical bills | Covered |
| Lost wages | Covered |
| Pain and suffering | Covered |
| Funeral costs | Covered |
| Repair costs to another party's car or property | Covered |
| Legal fees | Covered |
What You'll Learn
Bodily injury liability
In Texas, bodily injury liability (BI) is one of the major coverage types in your auto policy. This coverage helps pay for the medical costs of other parties injured in an accident where you are at fault.
BI covers the following:
- Medical expenses for the other party, including hospital fees, follow-up care, and other related health care costs.
- Legal fees that you may encounter if the other party chooses to sue you.
- Loss of income for other parties involved who may have been injured and are unable to work for a period of time.
- Funeral costs if the accident results in the fatality of the other party.
It is important to note that BI does not cover any of the above for you (except legal fees). Coverage for yourself falls under comprehensive and collision coverage, which you pay for separately.
In Texas, you are required to carry at least $30,000 in bodily injury liability insurance per person and $60,000 per accident. These are the minimum coverage limits mandated by the state, and they are often written as 30/60/25, with the first two numbers representing the BI limits. However, these minimum limits may not provide you with the level of protection you need. It is recommended that you get limits that match the value of your assets or the highest limits you can afford. If you are involved in an accident and are at fault, you are liable for any damages that exceed what your insurance covers.
Bodily injury claims are the most expensive claims associated with an auto policy. Therefore, it is essential to consider your potential risks and choose appropriate coverage limits to ensure you are adequately protected in the event of an accident.
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Property damage liability
It is important to note that property damage liability insurance does not cover damage to your own vehicle. Coverage for your own property falls under comprehensive and collision coverage, which you need to purchase separately.
If the damages you cause exceed your coverage limit, you will be responsible for paying the difference out of pocket. To reduce the chances of having to pay out of pocket, you can purchase limits higher than the minimums set by your state. However, keep in mind that higher limits will result in higher premiums.
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Collision coverage
However, it's important to note that collision coverage does not cover damage to another vehicle, medical expenses for you or other parties, theft or vandalism damage, collisions with animals, or damage caused by weather events or fallen objects. For coverage against these perils, you would need comprehensive coverage in addition to collision coverage.
The cost of collision coverage varies depending on personal factors such as age, gender, marital status, driving record, vehicle type, and location within the state. On average, collision coverage costs around $344.85 per year in Texas, with a range of sub-$200 to over $500. Collision coverage typically has a deductible, which means you will have to pay a certain amount (usually between $500 and $1,500) each time you file a claim.
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Uninsured/underinsured motorist coverage
Insurance companies must offer you this coverage when you buy auto insurance, and if you don't want it, you have to turn it down in writing. You can usually add this coverage in $5,000 increments, and it's recommended that you add at least enough property damage coverage to replace your vehicle.
- Car repairs and to replace the property in your car
- A rental car if you need it
- You and your passenger's medical bills
- Pain and suffering costs
- Diminished value if your car is worth less after the accident
The deductible for uninsured/underinsured coverage is $250, which is much lower than the deductible for collision coverage.
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Medical payments coverage
Unlike PIP, Medpay is not mandated by Texas law. You must specifically request Medpay coverage. Additionally, Medpay coverage may be issued in any amount: $500, $1,000, $2,000, etc. There is no state-mandated minimum. Medpay does not cover lost wages. Although Medpay also provides no-fault coverage, it only covers medical bills and does not cover lost wages.
Medpay has a right of subrogation, meaning that your insurance company has the right to get reimbursed from your personal injury settlement for the amounts they paid under your Medpay coverage. This is the most important part of Medpay coverage that your agent may not clearly explain to you.
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Frequently asked questions
Auto liability insurance in Texas covers the cost of damages and medical expenses for another party in a car accident for which you’re at fault. This includes medical bills, lost wages, pain and suffering, and funeral costs for another driver and their passengers. It also covers repair costs to another party’s car or property.
Auto liability insurance in Texas does not cover your own medical bills, lost wages, pain and suffering, repair or replacement costs for your vehicle, towing services, or a rental car if yours is in the shop for repairs.
The minimum auto liability insurance requirements in Texas are $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident. This is often referred to as 30/60/25 coverage.
