It's already costing Sylvia Neaves more to gas up her car. With the new year, it will cost her more to insure it, too. "It's going to be hard, but unfortunately, we have to have it," Neaves said.
By Texas law passed in 2007, policies for minimum liability insurance written or renewed after Jan. 1 will rise to meet growing costs of paying medical and car repair expenses resulting from an accident. The result, according to the Texas Department Insurance, will be a premium that's 2 percent to 3 percent higher.
The change affects 7.5 million Texans who carry the minimum liability insurance. The state required drivers to carry liability insurance to cover repairs or replacements and some medical expenses of those not at fault in an accident. Currently, the minimum coverage limit is $25,000 for each injured person, $50,000 per accident and $25,000 for property damage. That's commonly referred to as 25/50/25 coverage.
On Jan. 1, the limits rise to $30,000 for each injured person, $60,000 per accident and $25,000 for property damage, or 30/60/25 coverage. The out-of-pocket cost will generally be less than what half tank of gas costs.
Texans can shop around for lower insurance rates on a website set up by the Texas Department of Insurance.
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