NU Online News Service, Dec. 15, 3:36 p.m. EST
Texas drivers will need to purchase more automobile insurance at the start of 2011 to complete a two-year plan to update minimum liability coverage required.
Jerry Hagins, spokesman for the Texas Department of Insurance, said the increase is "long overdue" because of higher vehicle repair and medical costs. For those who carry the minimum amount of auto liability insurance now–about half the drivers in the state–the new rules would mean premiums would go up 2-3 percent.
About 30 percent of drivers carry more than the minimum, meaning they would likely see no increase in premiums. The remaining percentage of drivers in Texas is uninsured, Mr. Hagins said.
However, it has become harder for uninsured drivers to get away with not having minimum insurance since Texas recently implemented a new database program to enforce the law, Mr. Hagins said.
The new minimum liability limits are $30,000 for each person injured in an accident, $60,000 for everyone injured in an accident, and $25,000 for property damage per accident–also known as 30/60/25.
The old minimum was 25/50/25, implemented in April 2008 as the first step to increase the minimum requirement per legislation passed in 2007. Prior to that, the minimum of 20/40/15 had not been increased in about 25 years.
According to Highline Data, State Farm was the leading writer of private passenger auto insurance in Texas in 2009 with about 27 percent of the market, followed by Zurich Insurance Group (12.7 percent), Allstate (10.1 percent), USAA (8.7 percent) and Berkshire Hathaway (8.6 percent).
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