It's the liability coverage specifically. In Texas the minimum coverage is 30/60/25. $30,000 injury per person up to $60,000 per accident. $25,000 for property damage.
So if they are driving a $60k valued car, which isn't unusual at all, and it is totaled, and you are found to be at fault, your insurance will pay $25k. Their insurance will pay $35k assuming they have full coverage. Then their insurance will sue you for the $35k. If there are injuries it keeps piling on. $100k isn't a big hospital bill. Now the cost to you goes up to $105,000. If you have assets worth that the court will liquidate those, or they can garnish wages, etc.
But ya, when you look at the bigger picture it's interesting. Many people will pay for full coverage on a $2,000 valued vehicle, but opt for 30/60/25 coverage which isn't really enough to protect yourself. It'd be better to drop the full coverage and up the liability. IMHO
Edit: I carry 100/300/100 for car insurance at a $128/6 month difference for two cars/drivers. I carry the state minimums on the motorcycle. If I total a Mercedes with my motorcycle I'm probably dead anyway!
Last edited by Liquiddog2; 03-13-2019 at 09:46 AM.