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Understanding Minimum Required Limits & What You Should Know

Be sure you are properly insured with car insurance and at least the minimum coverage

With regards to ANY kind of business or personal insurance, there is a danger of buying too little coverage, or going with the cheapest coverage. Remember, just because it is cheap, doesn't mean that 1 - it is right for you, 2 - it will cover what you need or 3 - that you should get it. Remember the saying - you get what you pay for? Well, think about that when you are considering your insurance coverage needs.

At Harbour Insurance Services, we get calls all the time from prospects that want the “cheapest coverage” or to find out what the “minimum required limits” are.  So, let's talk about that a little and be sure you understand what you are asking for. 

Minimum requirements for car insurance in Texas:

So, as far as your vehicle insurance, the Texas Department of Insurance requires that you are insured and with the minimum required limits.  However, if you owe money for your car, you have a lienholder, and you are required to maintain their minimum requirements for insurance.

But as far as the car insurance requirements:

  • $30,000 Bodily Injury Coverage for each person
  • $60,000 per incident for injuries
  • $25,000 for property damage.

This means that if you are at fault in an accident, regardless of the extent of the injuries to the other parties or how many people were injured you have no more than $60,000 to cover it all.

Have you been to the ER lately?  Medical costs are skyrocketing.  The average injury in an accident is currently reported to cost $26,000 and that’s just for one person.  Remember?  If you buy minimum limits, you only have $30,000 coverage for that one person.  What if there are two or more?  What if the medical costs go over the limit?

It also means that whatever property you damage with your vehicle, whether it is another vehicle, a building or a telephone pole, you only have $25,000 coverage for that property.  Most vehicles on the road today are worth more than $25,000.

What does this mean for you? 

Once you reach your coverage limits, all further expenses - you may be liable for, personally.  And, if the injuries are serious, these medical costs can accumulate for years. If that vehicle you damaged is worth more than your policy limit to replace, the difference is your responsibility.

None of us want to pay for insurance we may never need, including me. The reality is that, at some point in our future something may happen and we will need our insurance coverage to avoid untold out of pocket expense. We live in a very litigious society.  We have to protect ourselves from losing everything over one incident.

The next time you call an insurance agency for a quote, and I highly suggest you contact a local, licensed, experienced insurance agency, like Harbour Insurance Services, ask for the highest possible liability limits that you can afford and consider a personal liability umbrella policy as well. 

The personal liability umbrella policy could give you upwards of $1,000,000 worth of additional liability insurance for your vehicles, home and any other property you insure.

Make sure you are protected. The premium increase is minimal compared to the risk you take every time you get into your vehicle.

I have never had a client regret paying insurance premiums after having a large loss. They are always thankful they had the insurance in place to protect them.

Let us help you with your personal insurance needs

Just give us a call today at 281-520-4090 or submit one of our quick online quote forms - with the help of our dedicated business partners; we conveniently offer an entire solution for all your personal and business insurance needs.