Most people think they only need to purchase the minimum insurance required by Texas law. This is a huge mistake.
Generally, the more assets you have, the higher insurance you should purchase to make sure you’re protecting you and your assets. But most people should consider purchasing significantly more than the minimum limits.
For property damage, the minimum required by the law is $25,000.00. But today, the average new car costs over $30,000.00, and the prices go much higher than that. If you are just purchasing the minimum limits, you are still leaving yourself exposed to significant liability should something happen.
Similarly, for personal injury claims, the minimum coverage is $30,000.00. That might sound like a lot. But when considering the cost of health care, that’s a small amount. Whether you’re talking about liability insurance, protecting you against someone else’s claim, or uninsured/underinsured, protecting you and your family, a simple hospital visit might exceed that cost. In that instance, by purchasing the minimum limits, you will have done a good job protecting the hospital or your health insurance company, but you won’t have done a good job protecting yourself.
People’s situations differ, but I generally recommend people purchase at least $100,000/$300,000 for personal injury claims and $50,000 for property damage claims for both liability and uninsured/underinsured motorist coverage. However, many people will be in a position where I’ll recommend much higher amounts.