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Texas insurance glossary

Liability coverage

Liability coverage is the part of an auto policy that pays other people for injury or damage the insured driver causes; it repairs nothing belonging to the insured.

Sources checked

It is the part Texas requires under ch. 601, and the part an SR-22 certifies. Two limits sit inside it — bodily injury and property damage — and they are separate promises with separate ceilings.

Everything a driver might want for their own car and their own household sits outside it. Collision, comprehensive, medical payments and personal injury protection are each bought on top, and each can be left off.

That split is why “I have liability” and “I am covered” are different sentences, and why the auto insurance page starts from what a policy leaves out.

Sources: TDI — automobile insurance guide (CB020); Tex. Transp. Code ch. 601 — Motor Vehicle Safety Responsibility Act. Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Bodily injury liability Bodily injury liability is the part of an auto policy that pays other people for injuries the insured driver causes, up to a limit per person and a larger limit per crash.
  • Property damage liability Property damage liability is the part of an auto policy that pays for damage the insured driver causes to other people’s property, most often another vehicle.
  • 30/60/25 30/60/25 is the shorthand for the minimum auto liability limits Texas requires: $30,000 for one injured person, $60,000 for a crash, and $25,000 for property damage.
  • Full coverage Full coverage is a market phrase rather than a policy: it usually means liability plus collision and comprehensive, and no policy sold in Texas covers every loss.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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