Texas requires everyone to carry liability insurance at all times. The required minimum is 30/60/25. However, you have the option to increase the limits for just a few dollars more per month. Ask us to compare the difference for you! Not all companies offer the increased options. Beware of named driver policies versus the standard policies that allow permissive use. What does this mean? It’s the difference of whether your policy covers only the listed named drivers or if it will extend the liability to any licensed, non-excluded driver whom you allow to borrow your vehicle. ASK, even if state law requires all agencies to disclose if it is a named driver policy! Cheapest isn’t always your best option. You may end up paying more out of pocket in the long run.
What does 30 / 60 / 25 mean?
These numbers represent the maximum pay outs on your policy. If you have 30/60/25, it means you have $30,000 per person, $60,000 maximum per accident for all involved passengers and $25,000 property damage limits. Property damage could be a vehicle or other property you run into such as a fence, light post, building etc. If you cause an accident, your policy will pay up to those limits to the other person(s) for the injuries you caused to them, their passengers and/or their property.
- Per accident, the amount of insurance you have for the total accident
- Property damage, the amount of insurance you have to pay for the other property
We recommend you always consider limits above the state minimums. Most new cars cost more than $25,000 and if your insurance limit is used up, the remaining amount will come out of pocket. Imagine if you were to cause damage to a $75,000 luxury vehicle or worse yet, cause a death!
Remember, a personal policy will not cover a commercial vehicle or use of a personal vehicle for commercial use. But a commercial policy will cover a personal vehicle plus it is tax deductible!