What Does the New Texas Insurance Minimums Mean to You?

The minimum amount of liability for car insurance in Texas is changing – and that means your insurance policy might also change. But unless you pay attention to insurance laws – which most people don’t –you probably don’t know how it will affect you.

If you live in Texas and own a car, read on so you can see how this will affect you and your current insurance policy.


Minimum Liability Limits – The new limits are $30,000 for each person injured in an accident, $60,000 for everyone injured in an accident and $25,000 for property damage per accident. This is also known as 30/60/25 coverage.

Costs Are the Major Influencer – The reasoning behind the limits being raised are because the overall costs are going up. This includes costs associated with medical expenses as well as the amount that is charged when a vehicle undergoes repair after an accident. Insurance companies are then better able to serve customers with more resources when there is a claim.

Many People Have Minimum Liability – If you’re one of the people who only pays for the bare minimum in terms of liability insurance to save money, you may have to pay a little more. That’s because you’re one of the fifty percent that is already at the bare minimum, and the standards are being changed by law.

No Change Likely If You’re Already Over the Limit – About thirty percent of people in Texas are already paying over the liability limit standard, as it is. That means that they pay for liability limits over the current lowest amount of 30/60/25. So these folks should not be seeing any sort of price increase to their policy.

Your Costs Will Only Increase Slightly – Experts are estimating that the overall increase in costs will be only up to three percent on existing policies. Many may only see a one or two percent increase. So while you will be paying more, it will only be a small increase that will allow you to have higher limits of coverage in the long run.

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