Those of us who practice personal injury law in Texas don’t normally get any good news from the Texas legislature. But we did receive a small nugget last session. Effective April 1, the minimum limits for automobile liability policies increased from $20,000 per person/$40,000 per wreck to $25,000 per person/$50,000 per wreck.
The limits are the maximum that an insurance policy will pay per wreck. For example, with a $25,000/$50,000 policy, the most the liability insurance company is liable to pay for any one claimant in a wreck is $25,000, and the most the liability company is liable to pay in total for all claimants (regardless of the number) is $50,000. Obviously, if there are several people injured in a wreck, then the claimants are often left fighting over the $50,000 because it is not enough money to compensate all the victims for their injuries.