Texas Auto Insurance Requirements
In January 2008, Texas Auto Insurance Requirements changed from $20,000/$40,000/$15,000 to $25,000/$50,000/$25,000.
Now that you know the limits, let me summarize what they mean.
Keyword being "summarize" as you should always review your policy in detail.
The best place to review your coverages and limits is your Declarations Page.
If you can't find it, call or email your agent.
They'll probably follow up with a friendly phone call as this could be a red flag that you are shopping your insurance and getting an apples-to-apples quote.
I'm sure they will be pleasantly surprised to find out you are learning more about your policy and not considering a new agent.
$25,000/$50,000/$25,000 Explained: - $25,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Bodily Injury Per Person.
This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else.
You and family members listed on the policy are also covered when driving someone else's car with their permission.
Notice the word "Permission".
- $50,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Bodily Injury Per Accident.
See above for Bodily Injury.
- $25,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Property Damage.
This coverage pays for damage you, or someone driving the car with your permission, may cause to someone else's property.
Usually, this means damage to someone else's car, but it also includes damage to telephone poles, fences, buildings or other structures your car hit.
Notice it is for "someone else's property".
This does not protect your property (car).
I hear this a lot when discussing limits with clients.
They respond, "why do I need to increase my limits when my vehicle is only worth $15,000?".
This is for someone else's property, so think about this for a moment.
You cause a three car accident (no you weren't texting while driving) and those cars involved a Honda Accord, Lexus RX 350, and a Toyota Prius.
Turns out you hit the Honda Accord so hard the insurance adjuster deems the vehicle a total loss.
Take some time to do the math.
Do you think your $25,000 limit is sufficient? As far as coverage for your vehicle, that is available, and will be discussed in a future article.
Now that you know the limits, you should know what happens when you exceed your limits.
The person you hit, can come after your assets.
Consider increasing your limits and protecting your family's nest egg.
Again, this is just a summary, and only covers the minimum coverage not recommended coverage.
I encourage you to read your policy and talk to your agent for details.
Now that you know the limits, let me summarize what they mean.
Keyword being "summarize" as you should always review your policy in detail.
The best place to review your coverages and limits is your Declarations Page.
If you can't find it, call or email your agent.
They'll probably follow up with a friendly phone call as this could be a red flag that you are shopping your insurance and getting an apples-to-apples quote.
I'm sure they will be pleasantly surprised to find out you are learning more about your policy and not considering a new agent.
$25,000/$50,000/$25,000 Explained: - $25,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Bodily Injury Per Person.
This coverage applies to injuries that you, the designated driver or policyholder, cause to someone else.
You and family members listed on the policy are also covered when driving someone else's car with their permission.
Notice the word "Permission".
- $50,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Bodily Injury Per Accident.
See above for Bodily Injury.
- $25,000: This number is the MAXIMUM DOLLAR AMOUNT the insurance company will pay towards Property Damage.
This coverage pays for damage you, or someone driving the car with your permission, may cause to someone else's property.
Usually, this means damage to someone else's car, but it also includes damage to telephone poles, fences, buildings or other structures your car hit.
Notice it is for "someone else's property".
This does not protect your property (car).
I hear this a lot when discussing limits with clients.
They respond, "why do I need to increase my limits when my vehicle is only worth $15,000?".
This is for someone else's property, so think about this for a moment.
You cause a three car accident (no you weren't texting while driving) and those cars involved a Honda Accord, Lexus RX 350, and a Toyota Prius.
Turns out you hit the Honda Accord so hard the insurance adjuster deems the vehicle a total loss.
Take some time to do the math.
Do you think your $25,000 limit is sufficient? As far as coverage for your vehicle, that is available, and will be discussed in a future article.
Now that you know the limits, you should know what happens when you exceed your limits.
The person you hit, can come after your assets.
Consider increasing your limits and protecting your family's nest egg.
Again, this is just a summary, and only covers the minimum coverage not recommended coverage.
I encourage you to read your policy and talk to your agent for details.
Source...