Automobile Insurance Policy Limits in Texas
The Only Mandated Auto Insurance in Texas
The only automobile insurance mandated by Texas is liability insurance. The minimum amount of liability insurance is typically referred to as 30/60/25, which means that the insurance company will pay no more than $60,000 per accident, but no more than $30,000 to any one person. The 25 refers to property damage, which means that the insurance company will pay no more than $25,000 to cover property damage.
However, 30/60/25 is only the minimum amount of liability insurance Texas requires. A policy holder may contract for coverage in excess of the minimum limits. For instance, insurance policies in Texas usually range in one of these increments: 30/60/25, 50/1000/50, 100/300/100, or 250/500/100. In addition to having a large liability policy, some policyholders may also contract for additional insurance, called umbrella coverage. Umbrella coverage is usually $1 million or more.
How Auto Insurance Works in Texas
To better explain the policy, assume that Larry and Moe are severely injured in a car accident with a liable person who has 30/60/25 in liability insurance. This means that the insurance company will not pay any more than $60,000 for the entire accident, and neither Moe nor Larry will be entitled to any more than $30,000 each. For instance, even if Moe has $28,000 in medical bills, Moe will only recover $30,000 from the liability insurance company. Absent extenuating circumstances, the liability insurance company will not pay any more than the applicable liability policy limits. Therefore, when you have three or more claimants with serious injuries and only limited insurance proceeds, it can become a race to the money.
Explaining Underinsured Auto Insurance in Texas
Even though liability insurance may be exhausted, additional money may still be available in the form of underinsured motorist coverage and/or personal injury protection (PIP). Of course, whether a claimant is entitled to underinsured motorist benefits and/or personal injury protection depends upon the particular circumstances of the case and the type of personal auto insurance carried by the driver and/or the passenger(s). Learn more about Underinsured Auto Insurance.
Mandated Commercial Vehicle Insurance in Texas
Insurance coverage for commercial vehicles varies. Federal law mandates that 18-wheelers carry liability insurance of a minimum $1 million. However, $1 million is only the minimum amount required by federal law, meaning that some 18-wheelers carry liability insurance far in excess of $1 million.
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If you have suffered injuries because of an auto, motorcycle, truck, or 18-wheeler accident and would like additional information about liability insurance coverage, including underinsured or uninsured motorist benefits, please contact our office for a free consultation.
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