What is State Minimum Auto Coverage, and Why Get More?

When purchasing auto insurance in Texas, drivers typically must carry at least the state’s minimum required coverage to prove financial responsibility. The law sets the state minimum auto coverage to ensure that all drivers have some level of financial protection in the event of an accident. However, while meeting these requirements keeps you legally compliant, it may not provide sufficient coverage for all potential expenses.

Understanding State Minimum Auto Coverage

Texas requires drivers to prove financial responsibility after an accident. For most people, that means carrying liability insurance, which helps pay for injuries and damages to others if you are at fault in an accident. This typically includes coverage for bodily injury per person, bodily injury per accident and property damage. These limits are designed to cover basic accident costs, but they may not be enough in more serious situations.

Why You Should Consider More Than the Minimum

Most drivers should keep the following in mind when deciding on how much coverage to get:

• Accidents can be costly. The cost of medical bills, vehicle repairs and legal fees can quickly add up after an accident. If damages exceed your policy limits, you could be forced to pay out of pocket, which may put your finances at risk.

• Lawsuits are a possibility. If you are found at fault in an accident that results in severe injuries or significant property damage, the affected parties may pursue legal action. Higher coverage limits could help protect your assets in such situations.

• Your vehicle and medical bills may not be covered. State minimum insurance does not include coverage for your own vehicle or medical expenses. Without additional policies such as collision, comprehensive or personal injury protection, you may have to pay for repairs or medical treatments out of pocket.

Carrying higher limits and additional coverage options helps ensure you are better protected from financial strain.

Learn More

While Texas law mandates minimum auto insurance coverage, it is always wise to consider purchasing higher limits to safeguard yourself and your financial well-being. Contact Cinco Seguros today to find out more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.