Everything Drivers Need to Know About Insurance Limits
Insurance premiums can be costly, and figuring out what type of policy you need is often stressful.
Trying to strike the perfect balance between ensuring you have adequate coverage while not emptying your wallet can be challenging. Many states, including Texas, have specific insurance limits that you must meet.
With the help of a skilled car accident lawyer, you can make sure you understand your policy, hit the minimum auto insurance coverage limits, protect your assets in the case of an accident, and avoid overly costly premiums.
What Insurance Limits in Texas Mean for You
So, what are Insurance limits?
These limits refer to the maximum amount of damages your insurance company will pay for valid, covered losses. It may be helpful to think of the insurance limits as a ceiling – once you hit it, you’re responsible for covering any remaining costs yourself.
This may seem straightforward on paper, but it can get tricky in the real world. It is essential to understand what your insurance limits are because choosing the wrong limits could leave you in a very financially vulnerable position in the event of a costly accident.
While it may seem like choosing the highest coverage limit possible would be a no-brainer, it is important to note that a higher amount of coverage also results in higher premiums.
Crunching the Numbers: Minimum Auto Insurance Coverage Limits in Texas
Texas insurance laws state that all drivers must carry liability insurance with minimum insurance limits of 30/60/25.
That means your coverage must be at least $30,000 for injuries per person, $60,000 for injuries per accident, and $25,000 for property damage. However, these minimum auto insurance coverage limits often prove to be inadequate when a victim is involved in a more serious, costly accident.
For example, if you are at fault in an accident that results in serious injuries to another party, and their medical bills exceed $30,000, you could be held personally responsible for paying the difference.
Insurance companies are not known for making their policies easy to understand. In fact, they typically prey on people’s unfamiliarity with complex insurance terminology. With the help of a skilled personal injury lawyer, you can ensure you have the right coverage for your specific needs.
Are Split Limits or Combined Limits Better When Selecting an Insurance Policy?
There are two options for insurance policies – split limits and combined limits.
Split Limits
Split limits insurance policies divide coverage into separate amounts for different types of damages. Bodily injury and property damage insurance limits are handled separately. Split-limit policies offer more affordable premiums than a combined limit.
Combined Limits
Combined limits offer one total amount for all damages, typically between $300,000 and $50,000. This offers a bit more flexibility when you’ve been in an accident. For example, if you have high medical bills but low property damage, you can leverage more of the coverage in the areas you need.
So, are split limits or combined limits better? Both options have their advantages, but ultimately it depends on what suits your needs. Consider hiring a personal injury lawyer to help you decide which policy is best for you and your family.
Why Inadequate Insurance Coverage Can Cost You More Than You Save
Due to the costly nature of insurance premiums, it can be tempting to choose a policy with lower insurance limits.
However, we’ve seen countless cases where clients regret their minimal coverage. After a serious accident, medical costs can skyrocket, and property damage can easily exceed basic insurance limits. When this happens, your home, savings, and future wages can all be at risk as you struggle to pay for the damages from your accident.
Adequate insurance limits are critically important after a severe accident. They determine how much compensation you’ll receive for your injuries and damages and prevent you from falling into a financial hole.
Choosing the Right Insurance Limits for the Coverage You Need
Finding the best balance between sufficient coverage and affordable premiums boils down to assessing several factors: your assets, income, risk tolerance, and budget.
A dedicated personal injury lawyer will recommend coverage well above the minimum auto insurance coverage limits in Texas. Higher limits do mean higher premiums, but the minimal additional cost is well worth the protection you’ll receive.
Before you settle on a new policy and your chosen insurance limits, consider how much coverage you need. With car prices as high as they are and the loft cost of medical care, the minimum insurance limits might not be enough to cover your damages if you’re at fault in an accident.
Angel Reyes & Associates Can Help You Understand Insurance Limits in Texas
Understanding the nuances of insurance limits will help you make informed decisions about purchasing a new insurance policy and handling potential future accident claims.
Don’t let confusion about insurance limits in Texas cause you financial stress. Waiting until you’re in an accident to discover your insurance limits are inadequate is too late.
With over 30 years of experience handling auto accident cases in the Lonestar State, we have the ability and the passion to help you through any challenge you face. Our team of dedicated personal injury lawyers can help you understand your current policy and insurance limits and guide you through the claims process if you’re involved in an accident.
The compassionate team of attorneys at Angel Reyes & Associates takes pride in helping our valued clients face the challenges of complex insurance issues head-on, including understanding insurance limits in Texas. Allow us to help you by lifting the burden from your shoulders as we handle all communication and negotiation with your insurance company on your behalf. Don’t wait, don’t hesitate.
Contact us today for a free consultation, or stop by one of our offices in Dallas, Fort-Worth, Houston or Austin so we can discuss your case face-to-face. You’re in good hands with Angel Reyes & Associates.
