In the case of motor vehicle accidents, it is a sad reality that many drivers do not carry enough liability insurance coverage to adequately compensate others injured in an accident. According to the Texas Department of insurance:
“Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver's costs if you're in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.
Liability insurance doesn't pay to repair or replace your car or to treat your injuries. Consider buying other types of coverage - such as medical payments, collision, and comprehensive - to pay for these expenses.”
If you are reading this before having an accident, you should also add personal injury protection (PIP) to your insurance policy because this type of coverage helps pay your medical bills and lost wages even if you are at fault an accident.
Finally, purchasing uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage will provide an additional source of funds for you if another driver is at fault for an accident but does not have enough insurance coverage.
There are extremely important types of coverages. Without them, you are basically paying your insurance premium each month to pay for other people’s injuries but not for your own.