What’s the minimum coverage needed for vehicle accident insurance in Texas? Some of my buddies say its 20/40/15, while others say its 25/50/25. Which is correct?
Rolando
Dallas, TX
They must be confused with the previous minimum coverage in Texas. This is how it goes: the minimum coverage needed before April 1, 2008 was 20/40/15. On that date, “Texas Department of Insurance Commissioner’s Order No. 08-0037” took effect, and the minimum vehicle accident insurance coverage was raised to 25/50/25.
That means you’d have to be responsible for $25,000 worth of damage to one person up to $50,000 per occurrence of bodily injury, with another $25,000 for property damage if you’re found to be at fault.
Don’t worry, these new figures aren’t meant to rip you off. In fact, even this raised minimum coverage for vehicle accident insurance in Texas is pretty insufficient to cover the general costs of a major accident, which could run up to a cool hundred thousand bucks or more.
It’s meant to protect drivers in general, you included, from the financial burden an uninsured major accident can cause. Imagine having to fork out a hundred thousand dollars in the blink of an eye when you do get into an accident uninsured. Or imagine getting into an accident where another guy rams into you with only $15,000 to show for your million-dollar SUV or sports car.