Texas State Auto Insurance
In the state of Texas, auto insurance laws are taken very seriously. Woe to the person who chooses to drive without coverage in Texas, because the penalties can be quite severe. The reason for the hard line on auto insurance is because Texas, like many states in the country, is a “tort state.” In a tort state, as opposed to a “no fault” state, a person must be found to be at fault in a wreck. In no fault states, after a collision occurs, both parties use their own insurance to pay for any damages incurred up to a certain threshold. This helps to clear up a lot of frivolous lawsuits that result from car accidents. But Texas is not such a state. In Texas, the driver who is at fault must pay for the damages to both their own vehicle and the vehicle or property that he or she damaged.
Imagine, then, if you didn't have insurance and you caused a five car pile-up. Even minimum coverage is a bad idea in this scenario, but thankfully Texas has some relatively high minimum liability requirements. Property damage coverage comes with a $25,000 minimum. A good ten grand higher than most states. Personal injury liability carried a minimum of twenty-five grand as well until recently, when it was raised to $30,000. Similarly, the minimum coverage for more than one person is now $60,000 when it was fifty thousand before. When you compare this to a state like Florida, which only carries a ten thousand dollar minimum on both property and personal damage liability, you can rest easier knowing that you likely won't become bankrupt after a serious accident.
And lest you think we're being sensationalists, keep in mind that many people go broke each year because of insufficient auto insurance coverage. If you've got a mere fifteen thousand dollars in personal injury protection, and you accidentally injured another driver, anything that exceeds that amount will have to be paid for out of pocket. The same goes for property damage. So be careful out there and make sure that you're always covered for as much as you can reasonably afford. Minimum coverage should never be the default. Try as hard as you can to increase your liability coverage while still staying within your means. Some day you may thank yourself for doing so.
