Liability insurance coverage: What it is, and what it does
In Texas, if you drive a car you are required to have at least liability insurance coverage. This is so that if you’re deemed at fault in an accident, you can cover the other party’s damages without risking complete financial ruin for yourself. Minimum requirements for Texas liability insurance are $30,000 per injured person or a total of $60,000 per accident. Property damage liability coverage must be carried to at least a minimum of $25,000. This is often known as 30/60/25 coverage.
Two different types of liability insurance coverage
Bodily injury liability coverage
Liability insurance coverage is of two different types. The first is bodily injury liability coverage. With bodily injury liability insurance coverage, your insurance will cover the other party’s bodily injury costs to whatever level you have established in your policy, which is $30,000 per person or $60,000 per accident minimum. What this means is that if you’re at fault in an accident for the other person’s injuries, your insurance policy will cover the cost of those injuries up to the level carried. Examples of the costs liability insurance covers are any medical costs related to injuries suffered by the other party, compensation for wages lost as a result of the accident, and, in worst case scenarios, funeral expenses for parties killed in the accident.
Property damage liability coverage
Property damage liability is the second type of liability insurance coverage required by Texas state law. Property damage includes the repair or replacement of any vehicles, landscaping, buildings, or other property that is damaged as a result of an accident you’re deemed at fault in. If you’re deemed at fault in an accident, your insurance will cover you for property damage based upon the amounts you have established in your policy, which is at least a minimum of $25,000.