Understanding Liability Only Auto Insurance in Dallas
Driving can be a risky business, and one accident can cost anywhere from $1,000 to hundreds of thousands of dollars. That’s why in almost every state there is some type of minimum liability auto insurance that all drivers must carry. It protects other drivers from the risk of sharing the road with you.
The most important thing to remember about liability only auto insurance is that it only protects the other party. There is zero protection for you, the policyholder. Another necessary reminder is that the minimum amount of liability might not always be enough to cover you from possible legal action. Let’s dive a bit deeper into what having liability auto insurance means.
The Minimum Liability Requirement In Dallas
The minimum amount of liability insurance you need is set by the state. For Dallas drivers, the state of Texas has a rule of 30/60/25. That means you must have $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage per accident. Most drivers should consider higher optional coverage for both liabilities and for personal risk.
What Does Auto Liability Insurance Actually Cover?
Bodily injury covers medical expenses for the injured party in an accident you caused. It could also cover lost wages or legal fees for them as well. Property damage covers the other party’s vehicle repairs cost or even replacement costs. It can also cover other types of property you might have damaged such as lawns, fences, and more. Liability-only insurance does not cover any of your own costs resulting from an accident you are found at fault for.
Should You Opt For More Than The Minimum Liability Auto Insurance?
Are you trying to decide if the minimum liability insurance is enough for you? Everyone hates paying more for car insurance but not having enough insurance can be a costly mistake in the long run. Knowing exactly what you need is going to depend largely on two factors.
#1. Do you own your car or is it financed?
If you’re making car payments, then your lender is going to insist on full coverage. This means that you will have liability coverage to protect others, collision coverage for yourself, and comprehensive coverage for things like weather damage, vandalism, and theft.
#2. How much risk are you willing to take?
How expensive can one accident be? Let’s say you cause an accident and three people are injured. They all end up spending time in the hospital with multiple injuries. That can easily be over $100,000 per person. If you only have the minimum insurance then they will most likely still come after you legally for the balance due. If you couldn’t financially survive benign sued, you might want to consider more liability insurance. Additionally, if you have an expensive car or rely on your car for work then you’re probably going to want to protect that investment with full coverage insurance.
Liability auto insurance is definitely the cheaper way to go. But as you can see you are sacrificing coverage. So it's important to assess your financial situation and decide how much risk you are willing to take to save money on that monthly premium