Most folks walk off the lot thinking they have full coverage with the Texas minimum 30/60/25 but have no idea what that truly means. You leave with full LIABILITY coverage but not full coverage because damage to you may not be covered. For liability coverage, Texas requires a minimum level of 30/60/25. Those numbers stand for:
$30,000 Bodily injury limit per person. This covers injuries that people in the other car have if you are at fault.
$60,000 Bodily injury limit per occurrence, this covers injuries that people in the other car have per accident, not individual as the first limit does.
$25,000 Property damage limit per occurrence. This covers the damage to someone else’s car.
Collision will cover your vehicle with a deductible.
This is what full coverage means, you are covered from paying full price if you are at fault for an accident and cause damage to someone else’s vehicle.
Under/Uninsured coverage is what covers you in the case that someone else is at fault for an accident that does not have insurance or does not have enough to cover the damage they cause to your vehicle. Without this coverage, you are on the hook for fixing or replacing a vehicle that is damaged by someone else instead of their insurance covering it since they don’t carry the required or enough insurance. For example, an uninsured driver hits you and totals your car. They don’t have insurance and you don’t have under/uninsured coverage. You are stuck having to still pay for the car that is totaled, and having to pay for a replacement at the same time. This is often times left off of policies or viewed as optional coverage and is not required to have. I always recommend it since paying for two cars and only having one is less than ideal for most of us. Under/uninsured coverage covers you as much as you are covering the risk to others.