Minimum Bodily Injury Coverage

• The insurance policy must provide a minimum of $30,000 per person and $60,000 per accident to pay for injuries to others if they are not at fault for the accident. Bodily injury liability will cover their medical expenses, lost wages, funeral costs and, in some instances, their pain and suffering. Payments are only made to the policy limits, and you may be sued for expenses that exceed your policy limits. Liability insurance does not cover your own medical expenses.
  
  

Minimum Property Damage Coverage

• Texas drivers must carry a minimum of $25,000 in property damage liability insurance. This covers the cost of having the other driver's car repaired or replaced, his car rental expenses and other property damaged in the accident for which you are at fault. It does not pay to have your own car repaired. Like bodily injury liability, if the property damage exceeds your policy limits, the other driver may sue to recover the balance due.
  
  

Other Coverage Provided by Liability Insurance

• In Texas, your liability insurance may also pay any punitive damages that a court awards the other driver. If the accident results in a lawsuit, liability insurance will pay the fee for your lawyer to defend you. Should you be arrested, your insurance can pay up to $250 in bail.
  
  

Penalties for Non-Compliance

• Texas assesses penalties for those who fail to comply with the legal minimum liability laws. A first offense is punishable by a fine ranging from $175 to $350. Additional offenses may result in a fine between $350 and $1,000, in addition to having your vehicle impounded and your driver's license suspended. For those who possess neither liability insurance nor a valid license, the penalty increases to six months in jail, a fine of up to $2,000, or both. If you are at fault for an accident that results in someone's death or serious injury, the fine can be as much as $4,000 and jail time can be increased to one year.
  
  

Optional Coverages

• Texas drivers may choose to purchase additional types of insurance to provide greater protection, but they are not mandatory. Personal injury protection covers the medical bills for you and your passengers. Uninsured or underinsured motorist protection will pay to repair or replace your car if you are in an accident with a driver who does not have liability insurance or whose policy limits are too low to pay your expenses. Collision and comprehensive coverages are normally required by your lender as long as you owe a balance on your car. Both pay to repair or replace your car, but collision is for accidents while comprehensive covers damages resulting from other causes, such as theft or vandalism. You can also purchase towing insurance and insurance to pay for renting a car if yours is in the shop following a covered accident.