What Does Liability Insurance Cover In Texas? (In 2023)

Are you a business owner in Texas with the ambition and drive to succeed? Also, want to know what does liability insurance cover in Texas? Hold on tight because I’m about to unravel the mysteries of Texas liability insurance. 

Your startup or established firm must understand the protective embrace of liability policy. So let’s dive into the world of Texas liability policy coverage together.

In Texas, a liability on financed car policy covers injuries and damage you may cause on the road.

Texas liability policy protects your finances when uncertainty strikes. For example, take the case of a slowpoke on Interstate 30. When you switch lanes, you don’t see the pickup truck. 

Instead, a truck slams into the guardrail after you hit it. It’s all right, but the pickup is gone. Without the policy, you’d have to pay the other driver for a replacement truck. The liability coverage on your car covers the cost.

A liability car policy pays for injuries and damages you cause if you’re at fault after an accident. It will only cover some things.

What Does Texas Liability Insurance Cover?

The liability car policy you buy (or anywhere else) consists of two parts:

• Bodily injury liability. In the event of a traffic accident you cause, it covers medical expenses, lost wages, etc. Additionally, you can use it for legal fees.
• Property damage liability. You can use this to repair property you damage in a traffic accident, such as someone else’s car or fence. In a car accident, it may even pay for other people’s belongings or a rental car.

What Does Texas Liability Insurance Not Cover?

Texas liability car policy won’t cover the following:

• Expenses, pain, and suffering, or lost wages.
• Your household members’ medical costs.
• Repair and replacement costs.
• Vehicle towing services.
• You are getting a rental car while you wait.

Texas Full Coverage Insurance Requirements

Drivers must have a liability policy. There are three parts to these small requirements:

• Bodily injury limit per person ($30,000). In the event of an accident you cause, this is the maximum your insurer will pay. Texas requires bodily injury liability coverage of at least $30,000.
• Bodily injury limit per accident ($60,000). In an accident, your insurer will pay at most this amount for all injuries (minus you and household members). Texas requires at least $60,000 in bodily injury liability coverage.
• Property damage limit per accident ($25,000). In an accident, this is the maximum your insurer will pay. Texas requires property damage liability coverage of at least $25,000.

Should I Get More Than Just Liability Insurance In Texas?

In the event of an accident, you may wonder how to avoid paying for repairs or hospital visits out of pocket. 

You may find yourself in many other situations besides damage caused by other drivers. You can benefit from optional types of car policies.

Below is a mention of standard coverage types after an accident:

Coverage type: 

• Uninsured and under insured motorist coverage

What it pays for: 

• Medical and repair costs for you and your passengers after an accident with an uninsured or minimally-insured driver. You must write to your insurer if you decline this coverage.

Coverage type:

• Collision coverage

What it pays for:

• Whether you’re at fault or not, your car repair expenses from traffic-related accidents.

Coverage type:

• Comprehensive coverage

What it pays for:

• It pays for Weather, theft, or animal-related car repairs.

Coverage type:

• Personal injury protection

What it pays for:

• The costs of medical care, lost wages, funerals, and more for you and your passengers. 

Coverage type:

• Medical payments coverage

What it pays for:

• Medical expenses for you and your passengers after an accident, regardless of fault.

Coverage type:

• Roadside assistance

What it pays for:

• A battery jump or towing service if your vehicle breaks down.

Policy Costs In Texas for Liability

The minimum liability car policy in Texas is $774. The national average is $685.

You may have a different price. It is because insurers in Texas and other states base their rates on various factors, including your age, vehicle, where you live, and credit score.

What Happens If I Drive Without Liability Policy In Texas?

You don’t mess with Texas — and that includes Texas law. Driving without liability car policy carries different penalties. As a general rule:

• As much as a $1,000 fine.
• Impoundment.
• License and registration suspended.
• Car policy premiums rise.

At Last Words

Lastly, liability policy in Texas protects individuals and businesses from legal claims and damages caused by accidents and injuries for which they are responsible. 

Likewise, Texas requires certain liability policies, such as the auto liability policy, to protect individuals from accidents. 

The policy protects individuals from financial ruin and compensates victims for their losses. Individuals and businesses must understand Texas’s liability policy scope to mitigate risks.

FAQ

What does liability insurance cover?

The policy protects individuals and businesses from claims of injuries, property damage, and other losses.

Are there any types of liability insurance in Texas?

It is legally required. All drivers in the state must have an auto liability policy. The nature of a business’s operations and industry regulations may also require it to carry a liability policy.

What does auto liability insurance cover in Texas?

The Texas auto policy covers the cost of injuries and property damage caused by an insured driver. A typical policy covers medical expenses, property repairs, and legal expenses.

Does liability insurance cover professional negligence in Texas?

Professional policy, called errors and omissions policy (E&O), protects professionals from claims arising from errors or omissions in their professional services. The general liability policy does not cover it.

Are there any liability insurance requirements for businesses in Texas?

Businesses in Texas may need a liability policy, depending on their industry management. Some professions and occupations require a specific liability policy. Ensure your business has the right policy coverage by understanding the legal requirements for your industry.

What does liability insurance cover in Texas?

It covers businesses in Texas. It covers bodily injury, property damage, libel and slander claims, and advertising injuries. Also, medical expenses cover legal costs.