(800) 253-1482What Is Liability Car Insurance
Summary: Liability car insurance is something all drivers must have in Texas and will restore another party’s vehicle if you cause an accident. You can combine other forms of coverage for even more coverage. By comparing your options and driving safely, you can even save on coverage. Estimated Read Time: 6 mins
Table of Contents:
- How Liability Car Insurance Coverage Protects You in Texas
- How Much More Is Full Coverage Than Liability in Texas?
- Pros and Cons of Liability Only Auto Insurance
- Understanding the Different Risk Factors for Texas Drivers
- How To Save On Liability Car Insurance Coverage in Texas
Liability car insurance coverage is required by Texas law for all drivers. Your policy will help restore losses to other parties when at fault, but if you wish to cover your own losses, you will need additional coverage. Explore how liability auto coverage protects you, the risks of enrolling in this coverage alone, and how to save.
How Liability Car Insurance Coverage Protects You in Texas
There are two categories of liability auto insurance coverage that protect you in the event you are at fault for causing an accident:
- Bodily Injury Liability Coverage protects you in the event you are in an automobile accident and at fault by paying to restore the medical costs for the affected party.
- Property Damage Coverage will help you restore the personal property of another party if you are the cause of a car accident.
Keep in mind that if you are in an accident and fail to have liability coverage, you are opening yourself up to the possibility of lawsuits. The Texas Department of Insurance (TDI) mandates that all drivers adhere to the 30/60/25 coverage minimums.
It’s also important to consider you aren’t covered by an auto policy that only has liability coverage. This means that if you cause an accident, your insurance policy won’t restore your own vehicle. Furthermore, you aren’t insured against uninsured/underinsured motorists or weather-related losses, such as flooding.
How Much More Is Full Coverage Than Liability in Texas?
The average liability insurance coverage in Texas costs drivers around 30%+ less compared to full coverage. Everyone must have liability car insurance coverage but the other coverages available are optional.
However, if you are financing your vehicle or leasing a vehicle, full coverage will likely be mandatory as a condition of your loan or contract. If you want to take on extra risk but save on premiums, you will need to own your vehicle outright.
Still, be sure to weigh your options and do your research comparing liability vs full coverage before making a decision. Here are a few scenarios where liability only may be a great option for Texans:
- If you’re a good driver with a positive driving record and don’t drive much, including older drivers.
- Liability-only coverage is great for older vehicles or vehicles that aren’t worth as much. This includes secondary vehicles not often driven.
- Those looking to save on premiums temporarily can forgo additional protections. But remember, you’re going to take on more risk during this time.
Pros and Cons of Liability Only Auto Insurance
Texas drivers looking to save a bit on premiums may look to only enroll in auto insurance liability coverage. There’s nothing wrong with this as you’re legal to operate the road and have protection if you are in an accident. But there are many different things that could happen costing you more money in the long run.
Auto insurance has many different coverage options. This is great because drivers have unique needs and risks. Get to know the pros and cons of carrying only auto liability insurance coverage in the Lone Star State:
|
Pros: |
Cons: |
| Maintain Texas driver requirements | There are several losses you are not covered for |
| Protect against losses while saving on premiums | The premiums you save can pale in comparison if you are at fault for a major loss |
| No deductibles | Liability auto insurance doesn’t restore your own vehicle |
| Great for drivers with older vehicles or less valuable cars | It’s unlikely that you can lease or finance a vehicle with liability-only |
Understanding the Different Risk Factors for Texas Drivers
No two drivers have the same exact risks, but there are universal factors that affect us all. Car liability insurance coverage doesn’t protect against everything for drivers in Texas. Here are a few additional considerations to remember:
- Weather-related damage such as flooding will require additional coverage. Comprehensive coverage helps restore your vehicle for damage that comes outside of driving.
- Maintaining liability benefits the other drivers on the road. Damage to your vehicle can be restored by purchasing collision coverage.
- Sometimes liability can be excessive. Liability coverage and car insurance in Texas as a whole may not be enough as the cost of repairs and medical bills continue to rise. Umbrella insurance policies can help Texans gain supplemental protection for excessive losses.
There are more risks and scenarios you may face depending on your personal factors. Be sure to identify your risks and the appropriate coverages to help you mitigate out-of-pocket costs following an accident.
How To Save On Liability Car Insurance Coverage in Texas
Finding cheap liability car insurance coverage is possible but rates will vary throughout Texas and from driver to driver. Regardless, everyone can save on premiums when taking the time to shop for liability coverage the right way. Here are a few steps to remain legal, protect yourself on the road, and avoid overpaying:
Drive Safely and Control Personal Risk
Having a clean driving record, submitting fewer claims, and being safe on the road aren’t completely in your hands, but a good deal of it is. Doing the little things, such as driving the speed limit, thinking defensively, and avoiding distractions can help keep your rates low.
Driving safely helps reduce your risk of causing an accident which carriers will view favorably. This means you are going to receive better rates with lower premiums as a result.
You can also save money on premiums by controlling additional personal factors. For example, if you have a modest vehicle that is safe and reliable compared to a high-end sports car, you will pay less on average.
Always Shop Around For Auto Liability Coverage
Just as driving safely is in your hands, so too is shopping around. While it may take time to do so, you are likely leaving money on the table if you don’t compare brands. Remember, carriers are going to look at your risk factors to determine your premium, and the more risk you have, the higher your costs will be.
In addition to judging your risk, you’re also going to have carriers calculating these factors differently. Every brand has its own algorithm to determine risk and premiums. Shopping and comparing allow you to be sure that you aren’t just enrolling in the right coverage but you’re also not overpaying when doing so.
Compare Bundles and Discounts Too
Finally, if you want to maximize your savings, be sure to explore bundles and discounts. There are many discounts available but they can also vary by carrier. Working with an insurance agent can help you dig deeper, compare carriers quickly, and enroll in the coverage that saves you the most money.
Here at Freedom Insurance Group, our team works with over 25 top-rated auto insurance companies in Texas. We help save drivers 40% when switching because we assess your needs, personalize your coverage, and compare rates among our trusted carriers. Call us today or get a quote on liability car insurance coverage with just a few clicks.
