Why Minimum Auto Insurance May Not Protect You Enough

(NewsUSA) - Many motorists believe that carrying car insurance means they are fully covered if a crash occurs. But the policy you pay for may not come close to covering the costs of a serious injury.

That gap can leave drivers responsible for thousands of dollars in unexpected bills when an accident causes major medical expenses, lost wages or long-term rehabilitation.

In Texas, drivers must carry liability insurance, but the state's minimum requirements have not changed in more than a decade, even as health care and other accident-related costs have continued to climb.

The $30,000 Coverage Gap

Texas law requires minimum liability limits of $30,000 for injuries to one person, $60,000 for injuries per accident and $25,000 for property damage. This 30/60/25 coverage meets the legal standard, but it may not be enough after a major crash.

A 2023 National Highway Traffic Safety Administration report estimated the average lifetime medical cost of a serious crash injury at $69,345. The total economic cost was estimated at $280,726, using 2019-dollar figures.

That overall cost is more than nine times Texas's $30,000 minimum bodily injury limit.

Once an at-fault driver's policy reaches its limit, the insurer generally stops paying, even if expenses continue to rise.

When the Other Driver Has Too Little Insurance

The risk grows even more when the driver who caused the crash has little or no insurance. Research cited by the Insurance Research Council found that about one-third of U.S. drivers were uninsured or underinsured in 2023. In those cases, the other driver's coverage may not be enough to fully compensate those who are injured.

Ryan L. Thompson, founder and managing partner of Thompson Law, also known as 1-800-LION-LAW, has seen these issues from both sides of the legal process. Before representing injured people, Thompson spent years defending large corporations and learned how insurance claims are assessed and settled.

The Coverage Many Drivers Miss

One key form of protection is uninsured and underinsured motorist coverage, often called UM/UIM.

This coverage can help eligible policyholders recover certain costs when the at-fault driver has no insurance or does not carry enough liability coverage.

In Texas, insurers are generally required to include UM/UIM coverage in auto policies unless the customer rejects it in writing.

Still, some drivers decline this protection to lower premiums without fully weighing the possible financial impact.

Knowing the difference between liability coverage and UM/UIM protection can help drivers avoid costly surprises.

Review Your Policy Before You Need It

Thompson Law urges drivers to look over their insurance declarations page, which outlines coverage types, limits and deductibles.

Drivers should confirm whether their liability limits are sufficient, whether they have UM/UIM coverage and whether additional protection would make sense for their situation.

The Dallas-based personal injury firm, founded by Thompson, says it has recovered more than $2.1 billion for injured people and families nationwide.

The takeaway is straightforward: meeting the state's minimum insurance rules does not necessarily mean you are fully protected.

Spending a few minutes to understand your policy now could make a major financial difference later.

For more information, visit 1-800-LION-LAW.com.