Auto Liability Insurance
Each state requires drivers to carry liability insurance to ensure that they can meet their financial obligations. This coverage is designed to cover two separate, and potentially catastrophic, financial burdens - damage to someone else's car or property, and physical injury to that person. In the unlikely event that you are involved in an accident, you are legally responsible to pay for any damages caused by your vehicle regardless of the cost.
Of course, insurance companies cannot be expected pay an unlimited amount, so the limits are expressed in a three number format which indicate the maximum amount that an insurance company will pay per accident as expressed in thousands of dollars. In Texas, the minimum required liability insurance is expressed as 30/60/25. The first number indicates the dollar limit (in thousands) that the insurance company will pay for the medical bills of one person. The second number is the limit for the entire accident if more than one person is hurt. Lastly, the third number is the maximum amount that would be paid for damage to some else's vehicle or property.
Of course, insurance companies cannot be expected pay an unlimited amount, so the limits are expressed in a three number format which indicate the maximum amount that an insurance company will pay per accident as expressed in thousands of dollars. In Texas, the minimum required liability insurance is expressed as 30/60/25. The first number indicates the dollar limit (in thousands) that the insurance company will pay for the medical bills of one person. The second number is the limit for the entire accident if more than one person is hurt. Lastly, the third number is the maximum amount that would be paid for damage to some else's vehicle or property.