In Texas, what happens if an insured is involved in an accident that exceeds the state's minimum liability limits?

In Texas, if an insured is involved in an accident that exceeds the state's minimum liability limits, the correct understanding is that the insured has to pay out of pocket for the excess costs. The minimum liability limits set by the state are the minimum requirements for coverage, not necessarily the total amount covered by an insurance policy.

While some policies may offer higher limits if the insured has opted for them, a standard liability insurance policy does not automatically adjust to meet any higher amounts resulting from an accident exceeding state limits. Instead, once the coverage limit is reached, any further expenses resulting from the accident that surpass the insured's policy limits must be paid out of pocket by the insured.

Therefore, it is essential for insured individuals to be aware of their coverage limits and consider purchasing additional coverage if they anticipate potential liabilities that could exceed the state minimums.