I recently had a close friend involved in a car accident. She and her husband were on a residential street, and a car ran a red light and hit them. She was severely bruised, suffered a concussion, and was hospitalized for a few days. As soon as I heard of the incident, I thought “I hope that person had insurance.” I didn’t ask my friend any details on whether the person had insurance or not, nor if she/he was taking responsibility for the hospital bills and etcetera. I was more concerned about my friend and her recovery, and chose to mind my own business. As I was talking to her, she was telling me how she had two family members who had passed away in car accidents and she felt very lucky to be alive.
I began to think of how important it was for me, as an insurance broker, to make sure that my clients have high Liability limits. The chances of someone being involved in a car accident is not uncommon…but what if it’s fatal? Day to day, I advise my clients to have liability limits higher than what the state requires, because it helps to ensure they have enough to pay for the injuries that can arise if involved in a car accident.
The minimum liability limits in Texas are 30/60/25. This means that the insurance company will pay no more than $30k for bodily injuries to one person, and no more than $60k for bodily injuries for the entire accident. The remaining $25k is to fix the other person’s vehicle. Now, we all know how expensive medical care is, right? So, let’s look at a worst case scenario, of 4 people in the car that are injured. Will $60K for the entire accident be sufficient? What if it’s fatal? Many times, customers assume that my intention is to make as much money as possible off of them; however, on the contrary I am merely trying to save you money and give you excellent coverage with a reputable company.
The reality is that the difference between the state minimum liability limits and the next two higher limits may only be a couple of dollars more, per month. Liability will most importantly protect you, the client, from having to come out of pocket for anything over what your Liability limit is. Consult with your agent to make sure you have the proper Liability limit, because essentially, you want to protect your assets from lawsuits for not having enough coverage.