If you drive in Texas, you are required to carry a minimum amount of automobile insurance to protect yourself and others should you cause an accident. Unfortunately, the state minimum coverage may not be enough in a more serious event. Automobile insurance services find that while minimum coverage is often fine in a fender bender, it may not be in bigger accidents especially if someone is seriously hurt.

Your automobile insurance agency will typically recommend that you increase your liability coverage above the minimum amount, especially if you have more at risk. It’s important that you understand the limitations of minimum coverage and how the lack of sufficient coverage could personally affect you.

How Does Liability Automobile Insurance Work?

The liability part of your automobile insurance policy pays benefits to others if you are liable in a car accident. It pays for the physical damage to another vehicle and medical costs incurred for injuries another person sustained in an accident.

Depending on the amount of liability coverage you purchase from automobile insurance services, it can also protect you from any lawsuits filed and judgement received due to the accident.

Is the State Minimum Enough Protection for You?

State insurance minimums are designed to make sure that every driver has access to affordable insurance to protect them in an average accident. The minimum liability coverage you must purchase from your Texas automobile insurance agency is 30/60/25 coverage.

This means your policy will pay $30,000 per person for bodily injury up to $60,000 for all parties involved in one accident and $25,000 for any property damage per accident.

Considering the current cost of medical care, amounts that have risen into the hundreds of thousands of dollars and even more, this coverage amount is rather low. It may be enough for a minor accident. For more serious accidents with numerous injured parties and more than one involved vehicle, you could end up personally responsible a large part of the judgement.

Why Should I Consider Increasing My Limits?

For some, carrying the minimum liability automobile insurance is enough; however, it can put others at great risk. This is especially true if you own a home, have some investments or savings, a 401k plan, or other financial resources.

Should you be liable for an accident and not have enough liability coverage, your wealth could be liquidated to cover the judgement. The best way to protect your assets is to carry enough liability coverage from your automobile insurance agency.

How Much Automobile Liability Insurance Should You Purchase?

Automobile insurance services typically suggest buying as much liability insurance as you can afford because increasing your coverage costs relatively little in comparison to what you may lose in an at-fault accident.

A good rule of thumb is to carry at least enough to cover the value of all your assets. There are limits as to how much you can purchase, so you may also need to consider adding an umbrella policy for additional liability protection.

Do you really need to increase your automobile insurance above the Texas state minimum? Most insurance agencies would say yes, especially if you have any personal assets like a house, savings account, or retirement fund.

Automobile insurance services agree that the best way to protect your wealth while providing for serious auto accidents caused by you is to purchase the right amount of liability coverage. Discuss your specific needs with your automobile insurance agency today!

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