Texas Minimum Limits Policies Explained

In Texas, all drivers are required to carry liability insurance by law. The term “liability” references a situation where you are deemed at fault for causing a collision. Essentially, the State of Texas wants to ensure that its drivers are financially accountable for their actions, so it requires you to purchase liability insurance when driving on Texas roads.

Each and every insurance policy sold in Texas has a maximum amount payable on a given accident, known as the “policy limits.” In my own professional experience, I would estimate that anywhere between 75%-80% of drivers only carry the “state minimum” insurance. The current minimum liability limits are $30,000 for each injured person, $60,000 for each accident occurrence, and $25,000 for property damage per accident. This is known as a 30/60/25 policy.

To better illustrate a 30/60/25 policy, let’s run through a few examples:

Here, however, is where things get tricky.

For these reasons, it is important to make sure you carry sufficient Uninsured Motorist coverage on your own policy so you are protected in the event that the negligent Defendant does not have any insurance to pay for all the damages he or she caused to you (or to multiple victims). For more information on Uninsured Motorist coverage.

Contact Potts Law Firm today by calling (888) 420-1299 to learn more or to set up your free and confidential consultation.