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What is Liability Insurance Coverage?

It’s a fact—you must have adequate car insurance to drive anywhere in the Lone Star State. Insurance shows that you can pay for any accidents you cause. There are several types of insurance, and many policies are a compendium of those different types. Each type covers different parts of an accident. Understanding different types will help you make the right decisions for your individual insurance needs.

liability insurance coverage

Liability Requirement

Texas requires all drivers and owners to have liability insurance before they can drive. Liability insurance pays for the other driver’s bodily injuries and property damage if you are found to be at fault. Your own injuries and damages are not covered by liability insurance. Before you can register your vehicle, you must also have proof of your insurance coverage.

Liability insurance covers you, your family, and anyone who drives your vehicle with your permission. You can find out more by reading your policy. Your insurance agent can explain who is and isn’t covered in detail. Most policies have a deductible before they will pay a claim.

Although there are multiple optional coverages available, such as uninsured motorists and medical coverage, none of these are required by the state of Texas. If you’ve financed your vehicle, you’ll be required to increase your coverage with other types of insurance. These requirements are set out by a lender or leasing company. This coverage may include comprehensive, collision, and other types of insurance.

30/60/25 Coverage

Most basic Texas liability policies are 30/60/25 coverage. This means that your policy will cover the minimum of:

  • $30,000 for bodily injury per person
  • $60,000 for bodily injury per accident
  • $25,000 for property damage per accident


These are the total dollar amounts that your insurer will pay for each claim. If the damages exceed these payouts, you will become personally liable for those expenses and can be sued in a personal injury claim to pay them. You can purchase liability insurance that’s more than the minimum to make sure you have enough coverage for an accident.

Personal property protection, or PIP, of up to $2,500 is also a requirement unless you waive that in writing. PIP covers medical bills for you and your passengers as well as lost wages and other losses.

Penalties For Driving Without Liability

If you drive without the minimum liability coverage, you may face penalties such as:

  • Fines start at $175 and are as high as $1,000 for additional offenses
  • Possible suspension of vehicle registration
  • Possible impounding of your vehicle
  • A requirement for an SR-22 filing with the state, the same requirement as someone convicted of DWI

Insurance is not only for complying with state law. It can protect you and your assets in an accident.

You can read more about liability and other types of insurance policies on the Texas Department Of Insurance’s website.

Contact a Texas Car Accident Lawyer Today

Car accidents can be devastating, complicated, and expensive. You shouldn’t have to handle everything yourself and risk financial ruin. Get help from someone who understands Houston car accidents and how they’re handled.

If you or a loved one has been injured in a car accident, you could be entitled to compensation. Contact Paxton Law Firm today by calling (281) 978-2244 or filling out our online contact form. During your free consultation, you can learn more about your legal options.

Contact Us (281) 978-2244