Texas auto insurance minimums increasing

By: Mystic Matthews Email
By: Mystic Matthews Email

GRAYSON COUNTY, TX - All Texas drivers will soon be required to carry a higher amount of liability insurance because the state of Texas is now saying the minimum is not enough. Mystic Matthews explains how much this could cost you.

The change takes place April 1st, but before anyone calls their insurance agent, some are saying this may be a good thing.

State Farm Agent Dave Gilliland says most drivers today don't carry enough liability insurance. Texas currently requires drivers to have $20,000 worth of coverage for each person injured in a crash; up to $40,000 per crash; and $15,000 for property damage.

In the insurance industry, that coverage is known as 20-40-15. Now the state wants to increase each of those coverage amounts to 25-50-25.

Texas insurance officials say drivers won't notice the change until it's time to renew their policy.

Gilliland says this move is designed to keep Texas at pace with other states. "$15,000 won't pay for a lot of vehicles on the road now. And that exposes a lot of people to excess liability that they are not covered for. It’s a protective measure and its a good move."

Even if your policy is considered full coverage, all drivers still have liability insurance. The increase only affects that liability portion of your coverage. The increase may only cost you a few dollars more a month, depending on what type of coverage you already have and your driving record.


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  • by James Location: Houston on Oct 21, 2008 at 11:17 AM
    I wonder how much more car insurance is going to go up. It may only be a couple of dollars a month but it is getting to be more and more. What state representatives and State Senator voted for the increase. Is this really helping to prevent the high cost of insurance or is the high cost going into the pockets of the Insurance executives and our state sentator and representatives. Every year the Insurance goes up affecting hard working people, who is struggling to pay car insurance that in some cases is higher than mortages. If there is someone in the same household, I was told by an insurance representative that the other person have to go on the policy, with no option of being off or on the policy. They said the person would have to be on the policy. Who is the policy benefits? It seem that our insurance policies is strongly in favor of the insurance company. The keep pricing and no one will be able to afford Insurance.
  • by x on Mar 27, 2008 at 05:46 PM
    and the ones who dont have insurance now it wont matter
  • by x on Mar 27, 2008 at 05:19 PM
    government control 3 americans 0
  • by Insured Driver on Mar 27, 2008 at 08:20 AM
    Don't they tow and impound vehicles that aren't insured? Seems like I remember reading about a guy complaining that he couldn't afford insurance and now had to pay to get his car out. Why don't they auction off the impounded cars after 90 days and put that in a fund to cover the victims of the uninsured motorist? It would make more sense than penalizing the insured. And by the way, if you have ever gotten an insurance settlement after a wreck, the insurance company depreciates your vehicle so much that 15,000.00 to the insurance adjusters is probably equal to a Hummer.
  • by Average Joe Location: Sherman on Mar 27, 2008 at 08:16 AM
    Location, it isn't your insurance company that is raising it, it is the state. At least that was my understanding.
  • by x on Mar 26, 2008 at 11:39 PM
    just another reason for premiums to go up but Texas does nothing about the people driving with no insurance at all . and its not like the insurance is going to pay out
  • by me Location: Mexico, Texas on Mar 26, 2008 at 10:24 PM
    Goes with the gas prices and the idiots on the road...yes, I'm talking about you tail-gaters on the phone and the 18 wheelers that think 60mph speed limit is 75 while tailgating...Just my opinion, not to mention the idiots that run over motorcyclists and the "aliens" that have no insurance. Beam me up Scotty...I'm tired of this!
  • by here Location: gone on Mar 26, 2008 at 09:15 PM
    you know to put my son on my policy raised me 200.00 a month and now they are going to raise it again good lord no wonder people dont have car insurance you cant afford it at all
  • by Anonymous on Mar 26, 2008 at 09:00 PM
    Mine is like 100/300/50 or something like that... way above the minimum but most new cars are a lot more expensive than the minimums!
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