Liability coverage is the minimum coverage to meet the financial responsibility requirement by the State of Texas.
Who it Covers: Liability coverage covers the policy holder, their family members and people driving the vehicle with the policy holder’s permission. The policy may cover the above while driving another vehicle (i.e. rental, company car, etc.).
However, there are policies (Named Driver Policies), do not cover people who live with the policy holder, including family members, unless they are specifically named in the policy. The declarations page must list the names of the people the policy covers.
What does it Cover: It covers car repair or replacement costs, car rental, medical and funeral costs, lost wages, and compensation for pain and suffering to the people in the other car involved in an accident that you or someone covered by your policy caused.
It also pays defense costs, including attorney fees if someone sues the policy holder or driver because of the accident. If arrested following an accident, liability insurance will pay up to $250 for bail.
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