In Texas, what types of coverage may be purchased?

In Texas, drivers have the option to purchase either split limits or combined single limits for their liability coverage. Split limits refer to a policy where there are separate maximum amounts of coverage for different types of damage, such as bodily injury per person, bodily injury per accident, and property damage. This allows drivers to tailor their coverage to their specific needs. On the other hand, combined single limits provide a single maximum limit that applies to all types of liability coverage in one lump sum, simplifying claims and coverage management.

Providing both options enables policyholders to choose the coverage that best fits their financial situation and risk tolerance. By allowing both split limits and combined single limits, Texas insurance regulations aim to offer flexibility in how drivers can protect themselves and others in the event of an accident. This variety is important, as it helps ensure that drivers can make informed choices regarding their insurance coverage based on their personal circumstances.