The Minimum Level of Auto Insurance in South Austin TX: Why It May Not Be Enough


Anyone operating a motor vehicle in Texas is legally required to pay for accident-related damages caused by their own actions. Auto liability coverage can quickly and easily fulfill this legal requirement, and while the state has a minimum liability limit, it may not be sufficient in all cases. Below are several reasons why the minimum amount of Auto Insurance in South Austin TX may not be enough.

Satisfaction of Texas’ Financial Responsibility Laws

Liability coverage is intended to replace or repair the other driver’s car when a policyholder is deemed at fault in an accident. It also pays medical bills related to at-fault crashes. To meet Texas’ financial responsibility rules, vehicle owners must buy at least the following amounts of liability coverage:

  • $30,000 in BIL per person
  • $60,000 per accident
  • $25,000 in property damage coverage per accident

This rule on minimum auto insurance will allow a driver to operate on the road in Texas, but it may not provide enough insurance coverage for every situation.

Minimum Coverage Offers Minimum Protection

The minimum coverage levels show above offer no coverage to replace or repair the at-fault driver’s vehicle if it is damaged or lost in an accident. Those driving older, easily replaceable vehicles can often do well with minimum coverage, but those with more expensive vehicles should consider collision coverage and rental reimbursement insurance.

The State Minimum May Not Pay for Everything

Vehicle prices are steadily rising, as are healthcare costs, and minimum liability coverage may not be sufficient to pay the other motorist’s costs after an accident. An accident can result in tens of thousands of dollars in medical bills and property damage, and the state minimum may not cover everything. If that’s the case, the other driver can sue the at-fault party for the difference.
An insurance company that promises just enough Auto Insurance in South Austin TX to keep a driver legal isn’t doing that person any favors. Getting the mandatory minimum level of auto coverage can be more costly than it would be to buy more coverage in the beginning. If a driver doesn’t understand their policy or they’re concerned about coverage amounts, they should consult a local agent like Patrick Court with State Farm for advice.