A slogan often found on highway signs in Texas is the encouragement to “drive friendly.” One of the ways the state of Texas helps that friendliness along is by requiring drivers to be able to prove their financial responsibility in the event of an accident.
Financial responsibility, of course, is just a fancy way of saying, “minimum liability coverage limits.” In Texas, the minimum requirements for auto insurance are written in shorthand form as 20/40/15.
Here’s how that breaks down:
- 20 or $20,000 is the minimum amount of liability coverage for bodily injury per person in a single accident.
- 40 or $40,000 is the minimum amount of bodily injury coverage per accident.
- 15 or $15,000 is the minimum amount of coverage for property damage, which means if you are found to be at fault in an accident, you have to be able to cover at least that amount of injury to personal property.
While the 20/40/15 breakdown represents the minimum coverage amounts required by the state of Texas, it is often wise to carry more than just the minimum. Here’s why:
- The minimum requirements only represent liability coverage. Collision and comprehensive coverage are not required, but you should still have them, in case you are injured or your car is totaled. As well, your finance company will require full coverage as long as you are still making payments on your car loan.
- If you own a business or home, minimum coverage will not protect your assets in the event of a law suit.
- Your insurance company is not required to cover damages or injuries above the amount of insurance you have.
You, as the driver, are financially responsible for damages and injuries caused by any accident in which you are at fault. At CarInsuranceList.com we can help you get a reasonable quote that will include minimum coverage, as well as expand that coverage to a more comprehensive car insurance package.