The actual requirements are abbreviated by local insurance agents as "20/40/15." Put more plainly this means that the minimum coverage amounts are:
Bodily Injury Liability (20/40):
Drivers in Texas are required to carry at least $20,000 per person and $40,000 per accident of liability coverage for bodily harm. The absolute minimums are at least $20,000 for a single injured person and $40,000 for the total of all bodily injuries.
Property Damage Liability (15):
Texas insurance law requires drivers to carry at least $15,000 in property damage liability coverage, which means that if they are found to be at fault in an accident, they must be able to cover at least $15,000 in the other driver's damage.
While this 20/40/15 breakdown represents the minimum coverage amounts for complying with Texas insurance law, it is important to realize that most drivers should probably carry higher amounts of insurance.
If you own a home or a business, for example, you would want to increase your auto insurance to help protect your other assets in case an accident results in a law suit, and if you have newer, or very valuable, car you would want to be able to replace it should it be totaled, and coverage for damage to your own vehicle doesn't even figure into the state requirements.
Financial Responsibility:
One point you should address when shopping for Texas auto insurance is "what if I cause more damage than my policy limits cover?" The answer is this: you, the driver, are personally responsible for any and all damages incurred as the result of an accident where you are at fault. Not only can you be sued for damages over and above what your insurance policy covers, but your insurance company is only required to pay up to those limits.
It is for this reason that, while we tell you the minimum requirements, we at CheapAutosInsurance.com also recommend that you cover yourself for more than those minimums. When requesting a quote, please keep that in mind.
In Texas, a slogan often seen on highway signs is "Drive Friendly." That's easier to do when you don't have to worry about not having enough insurance coverage.
