TXINS December E-News: Are State Minimums for Auto Insurance Enough?, Ask the Agent, Agency Happenings, Texas Trivia Contest, and More!

Are State Minimums for Auto Insurance Enough?

When most people shop for auto insurance, they often look for the lowest premium and the minimum limits required by law. Although there is often a good reason for keeping insurance premiums as low as possible, in some cases, having the bare minimum for limits could leave the policy holder liable and put finances and assets at risk.

By law, Texas liability limits must be at least 30/60/25. These numbers represent the limits that your insurance company will pay as a result of an accident. This means that your insurance policy will pay for bodily injury up to $30,000 per person per accident, but no more than a total of $60,000 for all injured parties in one accident. The 25 refers to property damage, meaning that you are covered for up to $25,000 for property damage resulting from an accident.

Those limits may sound sufficient to you but there are some instances in which increasing your liability coverage limits makes a lot of common sense.

Reasons you may want to increase liability limits:

  • You own a home. It is important to protect your assets.
  • You drive in a car pool. If you regularly carry multiple passengers, then your total exposure for injuries is increased.
  • You have multiple drivers on your policy. Every additional driver increases your risk of an accident.

The Benefits of Higher Insurance Limits
Getting higher limits may costs you more upfront but can save you financially in the event of an accident.

If you are in a car accident and are found to be at fault, you’re responsible for paying everything that your insurance company doesn’t pay. For example, if your limit is 10/20/10, you’re covered for up to $10,000 for an injury to the other driver, $20,000 for the total passengers’ injuries, and $10,000 for damage to the other person’s car. If the injuries cost $100,000, you’re responsible for the remaining $80,000, since your insurance company will only pay $20,000. The other party can go after your assets to get the $80,000.

Medical expenses are on the rise and so are the costs of personal injury claims. In a lawsuit, where damages can run to millions of dollars, state minimum limits are simply insufficient. You can lose your life’s savings and the equity in your home in a large claim.

You need protection beyond your capacity to pay for legal defense and claims. If you own a home and have an investment portfolio, you should increase the bodily injury limits of the auto liability coverage and buy personal excess liability insurance of at least $1 million. Parents who have teen drivers at home should consider buying additional excess liability insurance that supplements their existing homeowners and auto insurance.

Are your insurance liability limits sufficient to protect you, your family, and your assets? Contact your TXINS agent today and we’ll help you determine what coverages are appropriate to your individual financial situation. Increasing your limits to suit your specific circumstances is a wise move and may cost you only a few dollars more per month.

We Are Here for You 

Texas Insurance & Financial Services, Inc. is your trusted advocate. As an independent insurance agency, TXINS represents a wide network of A-rated insurance companies, which allows us to find the best insurance policy to fit your needs and budget. We don’t believe in cookie cutter policies and will customize a plan specifically for you. Your overall satisfaction is our top priority. That’s a promise.

TXINS offers complimentary insurance reviews to ensure you are getting the right coverage for yourself, your family, or your business. To schedule your review, contact us today at 800-541-9849 or via email. Together, we will ensure you are protecting what matters most.

The employees of TXINS are active members in our communities. Here’s a quick list of what we’ve been up to as well as what we have planned for the month.

  • Our annual Open House will be held at our El Campo office on Thursday, Dec. 3. Stop by and enjoy freshly popped popcorn and delicious homemade goodies. Bring the kiddos and watch the parade with us!
  • Our offices will be closed on December 24-25 for the Christmas holiday. We wish all of our family and friends a very Merry Christmas and Happy Holidays!


Don’t get anchored down with limited options for your insurance needs. Contact TXINS today and let our agents find the right policy to fit your unique situation.

I’m thinking about taking advantage of the year-end car deals and purchasing a new car at the end of the month. Do I need gap coverage?  – Wendy R., Corpus Christi, TX

Dear Wendy:

The end of the year is a great time to buy a new car. Dealerships often offer great incentives to make last minute sales to meet both monthly and yearly quotas. Most people don’t think about adding gap coverage to their auto policies after purchasing a new car and it’s definitely something to consider.

As with most types of insurance coverage, everything comes down to your risk. If you are buying a car, most likely gap insurance will be optional and you get to decide. Do you want to prevent the possibility of a large financial burden if something bad happens to your car, or are you willing to take a risk?

Overall, gap insurance is a wise choice if any of these circumstances are true:

  • You are purchasing or leasing a new or slightly used vehicle
  • You are buying a vehicle of significant value
  • You are financing a new or used vehicle without a large down payment, creating a “gap” between your vehicle’s actual value and your loan amount
  • You do not have significant cash savings that would allow you to cover the difference between the amount you owe on your loan and the actual cash value if your car is stolen or totaled

Make sure you read the fine print on your vehicle purchase and financing documents. If you do make a large down payment on your car, or you are buying a car of lesser value, you may not need gap insurance. You don’t want to inadvertently buy gap insurance twice – through your dealer and through your insurance agent.

It is also important to stay on top of your auto loan, because your gap insurance will not pay for any late bank loan or lease agreement payments. Before you head to the dealership, contact your TXINS agent and discuss the different options you have available. Don’t leave the lot without making sure you are covered!

Do you have a question for our agents? Email it to us! If we choose your question, we’ll send you a thank you gift! Be sure to include your mailing address and phone number in your email.

You Learn Something New Every Day
– Blueberries aren’t actually blue, but deep purple due to their high levels of anthocyanin. There is no naturally occurring blue food in nature.

– The only continent with no active volcanoes is Australia.

– The strawberry is the only fruit which seeds grow on the outside.

– December 24 is National Eggnog Day. While the origin of eggnog is debated, many people throughout the world consider eggnog the official “unofficial” drink of the holiday season. Whether you prefer your nog a little spirited or enjoyable for friends and family of all ages, rich and creamy eggnog is a sure sign the holidays are near.

Check Out Your Charity
Each year as Dec. 31 draws near, Americans are bombarded by requests for donations. Many answer those solicitations, happily giving to their favorite charities. After all, giving back is a good thing!

For tax purposes, only donations made to IRS-qualified charities are deductible. This means the group meets Uncle Sam’s requirements to be classified as a tax-exempt organization. To make sure your donations are tax-deductible, ask the charity to which you plan to give for information on its tax status. Reputable nonprofits will be more than happy to offer proof. You also can check out groups via various online databases, such as GuideStar and Charity Navigator, as well as by using the IRS’ own online searchable database of exempt organizations.

We LOVE Referrals!

Congrats to Charles Canton of Richmond, TX, our October Referral Program drawing winner! Thanks for your referrals Charles! Good luck in our end of the year drawing!

If you love Texas Insurance & Financial Services, Inc., tell a relative, friend, or co-worker about us. When they call to receive a quote make sure they let us know that you referred them.

As a thank you, you’ll receive a surprise gift and will be entered into our monthly $50 gift card drawing and our annual Grand Prize drawing for a $1,500 gift card!!!

(Grand Prize drawing will be held on December 3, 2015.)

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