Their Insurance Paid. Why Could You Still Owe Money?

A hypothetical crash into an expensive car exposes three different numbers: the damage, the liability limit, and what a claim actually pays. Follow the money using a Texas example. Music: Fresh Fallen Snow — Chris Haugen (YouTube Audio Library). The starting question is hypothetical. Texas is the example jurisdiction; its 30/60/25 minimum limits are not a nationwide rule. The $100,000 damage and $25,000 liability example illustrates a coverage gap, not a real claim or a prediction of any settlement. A vehicle price does not automatically equal accident damage. Actual coverage, responsibility and recovery depend on the policy, facts and applicable law. Sources:   / if_you_accidentally_crash_into_a_1_million   https://www.tdi.texas.gov/pubs/consum... https://www.tdi.texas.gov/tips/do-you... https://www.tdi.texas.gov/tips/what-t... https://www.tdi.texas.gov/tips/how-to... https://www.tdi.texas.gov/consumer/au... https://www.insurance.wa.gov/insuranc...