How Much Car Insurance Should I Buy In Texas?
If you ask any auto insurance agent this question, they will definitely tell you to buy the most car insurance coverage that you can afford. Although this is a good decision, there are still other things you need to consider before making a decision. Here are the things you need to ask yourself when deciding how much car insurance you need to buy:
1. What is the required minimum liability insurance in Texas?
2. What does a minimum insurance cover?
3. What are the additional car insurance coverage that you can purchase aside form the minimum liability insurance required by the state?
4. When deciding to purchase car insurance, what are you generally protecting?
In Texas, the minimum liability limits is 25/50/25. The first two numbers refer to Bodily Injury Liability Limits. For instance, the 25/50 refers to car insurance coverage up to $25,000 per person per accident, up to a maximum of $50,000. The last figure means that you can have $25,000 worth of coverage for property damage in case of an accident.
Let me caution you, if you buy the minimum required by the State of Texas, you will be legal, however, let’s say you are found negligent in an accident and there are some serious medical problems and also you hit an expensive luxury automobile and you don’t have sufficient insurance; the injured party can sue you and get a judgment against you. I recommend at least doubling this requirement and if you have some nice assets that could be vulnerable, go even higher.
Aside from the minimum car insurance coverage required by the state of Texas, what other additional coverage can you purchase?
Comprehensive and collision coverage are just two of the additional car insurance that people purchase to their car insurance policy. This coverage protects your car in case of an accident. Collision coverage covers your car in case of car was hit by another car or object. Comprehensive coverage on the other hand covers your vehicle for any losses other than collision such as vandalism, theft acts of nature etc.
So do you need these coverage in your policy. That will depend on your budget and what you are protecting. If you have a new car, it is a wise decision to purchase these coverage in your policy. If you have an older car, it would be best not to purchase these anymore and stick with the minimum liability insurance required by the state of Texas.
Category: Texas Auto Insurance
