When it comes to insuring your car, many people have inadequate coverage that can wind up causing them big problems in the future. While every car on the road in Texas requires insurance, there is nothing in the law that requires one to carry more than the minimum statutory amounts.
Financial responsibility laws require drivers to be responsible for any property damage or injury that is a result of their own negligence. The basic minimum policy requirements are often referred to as a 30/60/25 policy. That means for any single accident, you have $30,000 coverage for injury to a person or up to $60,000 for all occupants and you have $25,000 of coverage for property damage.
In today’s world, the basic coverage may not be enough to adequately protect you in the event of a serious accident. If you own a home or have a reasonable net worth, you could lose everything if you are the cause of a serious or fatal accident. A more appropriate type of coverage would be 100/300/50.
Many people think that if they have the basic insurance required by law then they are safe to drive. If you get pulled over by a police officer you will need to show proof of insurance. If you get pulled over for speeding and do not have insurance, you could face a much more substantial and severe penalty and fine.
It is definitely better to pay a little higher premium and get the proper amount of coverage than it is to try and save a few dollars and be under-insured. Driving is a privilege and not a right. With that privilege comes responsibility. Responsible drivers have adequate insurance.