CBS reported that approximately 7 million Texans will be affected by the coverage and rate increases. Approximately half of insured drivers opt for the least expensive insurance option, which is just liability coverage, not collision coverage.
Under the current minimum limits, a driver must have at least $25,000 in injury coverage, $50,000 in accident coverage and $25,000 in property damage coverage per accident. Now, the new minimum liability limits will increase to $30,000 for each injured person, $60,000 for each accident, while the property damage minimum limits will remain the same.
The new rate and coverage increase will not occur automatically on January 1; instead, the increase will be activated when the auto insurance policy is renewed in 2011
In Texas, insurers raise rates upon notifying regulators, but the Insurance Department can order a reduction and repayment of overcharges if it finds the rates are unjustified or excessive.