Texas Insurance Recommendations

Texas requires all drivers to have minimum liability insurance coverage, which covers bodily injury to people involved in auto accidents with your vehicle. This state requires somewhat higher minimum coverage when compared to other U.S. states. In Texas, you must have liability coverage to pay up to $30,000 of medical expenses for each injured person, with a combined total coverage per accident of $60,000 for everyone who was injured.

Drivers also need a minimum of $25,000 protection for property damage, including replacing the other driver’s auto, if necessary. With the costs of medical care and automobiles, this minimum coverage will be insufficient for many Texas drivers. Understand that injured persons, requiring medical expenses that exceed your limits, can sue you for the difference, which can put your other assets (home, boat, bank accounts, etc.) at risk of loss.

Remember, your property damage coverage will pay for the other driver’s car, if you were at fault, but it will not repair your vehicle. You need to add collision coverage to repair your damaged auto. Your medical bills are likewise not covered unless you add Personal Injury Protection (PIP) to pay your medical costs if you are injured.

Homeowner’s or renter’s insurance coverage should always be active to protect your home and/or personal property for covered losses. Pay particular attention to coverage for natural disasters (wind, lightning, water) as some policies exclude coverage for "acts of God," as they are sometimes called.

Having minimum coverage is budget-friendly and better than nothing. However, you should consider buying the most extensive coverage you can afford, as large losses can be calamities to your entire financial health.