Liability Coverage

The liability coverage that you carry on your policy is the minimum coverage that the state of Texas requires all vehicles to carry for their insured automobile. This is the coverage that would pay for the other party's property damage and any injuries sustained to him and his passengers as a result of the accident. Please note: The other party would only be paid for his property damage and injuries if it were determined by your insurance company that you or your covered drivers were legally liable and responsible for the accident. (the at fault party) (See Determining Liability)

Pays: The other party's expenses for accidents caused by drivers covered under your policy up to the policy limits.

Covers: You, your family members, and anybody else driving with your permission, even if they don't have their own liability insurance. You and your family members are also covered when driving other people's automobiles - including rental cars - but not non-owned cars regularly available to you such as company cars.

There are two parts to this coverage and is described as follows:

Property Damage: This pays for the other party's property damage repair or replacement, personal damaged property & other expenses such as towing and rental, referred to as Loss Of Use. (See Property Damage Claims and Rental Cars)

Bodily Injury: This pays for any injuries sustained by the other party and any passengers. This is to include medical expenses, loss of wages from employment and pain and suffering compensation. (See Bodily Injury Claims)
The liability coverage has >minimum limits

$20,000 = Bodily Injury per person: No one person can receive more than $20,000 for their injury.

$40,000 = Bodily Injury per accident: No one accident will pay more than $40,000, to include multi-person injuries.

$15,000 = Property Damage: This is all the financial coverage there is to pay for the other party's Property Damage.

If there was more than one vehicle in the accident, repairs were greater than $15,000 and you carry the minimum limits, there would not be sufficient coverage to cover their loss.

If the vehicle is a total loss and valued over $15,000, your limits are not sufficient to cover their loss.

In any of these situations, they could file an Underinsured Motorist claim with their carrier to cover the the difference. This is provided they have this coverage on their policy. (See Underinsured Coverage )

They could also file a Claim with their insurance company under Collision and then their insurance company could subrogate the claim. This is also provided they have Collision coverage. (See Collision Coverage and Subrogation)

If the cost to settle an injury claim were greater than $20,000 per person and $40,000 per accident, they could also file an underinsured Motorist claim with their carrier. Again, provided they have this coverage.