Liability Insurance
Liability insurance pays for damage and injuries you cause to others in an accident — it does not cover your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance is the only coverage Texas law requires you to carry. It pays the other driver's medical bills and vehicle repair costs when you cause an accident. Your own vehicle damage and medical costs are not covered — liability flows in one direction only.
Who Needs Liability Insurance Insurance?
Retirees with a home, retirement savings, or any asset a lawsuit can reach should carry liability limits high enough to cover those assets.
Calculate your total exposed assets — home equity, retirement accounts, savings. Carry liability limits at or above that total. The incremental cost is smaller than a single month's judgment payment plan on an underinsured claim.
How Much Does Liability Insurance Insurance Cost?
- Your liability premium reflects your driving record and claim history, not the value of your vehicle, because it pays for damage you cause to others.
- Bundling liability with homeowners or renters insurance through the same carrier often reduces the auto liability premium by 10–15 percent.
- Mature-driver course completion lowers liability premiums at most Texas carriers by 5–10 percent for three years per course.
- Annual mileage directly affects liability cost — retirees driving under 7,500 miles per year qualify for low-mileage discounts that reduce liability premiums by 10–20 percent at carriers offering the program.
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