As a young adult, I know many people around my age that simply do not know anything about car insurance, and that is okay. Most think it is just something that we all “have to have”. Although that is true, there are many more levels to a recommended car insurance policy, starting with the liability limits.
The state minimums required in Texas are 30,000 / 60,000, 25,000.
What that means is that if you are an at-fault driver the most an individual can collect is $30,000. That same insurance policy will not pay out more than $60,000 for everybody involved in the same accident. Also, the $25,000 is the limit in property damage (the other person’s vehicle) that will be covered by the policy.
Those numbers might sound like a good amount of cash to some people, but if you are involved in a bad accident with multiple drivers or cars, you will end up being responsible for the rest if those state minimum limits are exceeded after a crash.
Not to mention, if you are driving around with just state minimums and hit a Tesla or a Mercedes, chances are that $25,000 limit will not even come close to covering that vehicle.
The next step above state minimums would be 50,000/100,000/50,000, but what I always recommend for your liability limits is the next notch above that at 100,000/300,000/100,000.
Raising your coverages to those higher liability limits will affect your premium but not by much, so bumping those numbers up is something to look into. Having higher liability limits will also make you look better to other insurance companies in the future if you ever decide to shop around for new rates.