What does a 30/60 liability insurance policy mean?
When you hear that a driver has a “30/60” liability policy, you’re hearing the minimum amount of insurance coverage required by law in Texas. These numbers are shorthand for the insurer’s maximum payout limits in the event of an accident — not guarantees that every injured person will be fully compensated. The first number, “30,” means the insurance company will pay up to $30,000 for bodily injury or death to any one person. The second number, “60,” means that the insurer will pay no more than $60,000 total for all bodily injuries or deaths resulting from a single accident, no matter how many people were hurt.
To put this in perspective, consider a simple example. A driver with a 30/60 policy causes a serious crash. If only one person is injured, the maximum payout for that person’s medical expenses, pain, and suffering is $30,000 — even if their hospital bills are ten times that amount. If two people are hurt, they must share the $60,000 total, so each might receive up to $30,000 if their injuries are equally severe. But if three or more people are injured, the situation becomes much more unfair — that same $60,000 must now be divided among all victims. Some may receive a small portion, while others may get nothing at all, regardless of the severity of their injuries or their medical needs.
This limited structure often leaves victims without adequate compensation, especially in multi-vehicle or multi-injury collisions. That’s where the Soriano doctrine comes into play — a Texas legal principle that makes this problem even more complex. In Texas Farmers Insurance Co. v. Soriano, the Texas Supreme Court held that when multiple people are injured in a crash and there isn’t enough insurance money to cover everyone, the insurer may enter into reasonable settlements with one or more claimants — even if doing so exhausts the entire policy and leaves other injured parties with nothing. In other words, Texas law allows a “first come, first served” approach when insurance limits are insufficient to pay all claims.
Practically speaking, this means that if you’re injured by a driver with a 30/60 policy, the insurance company could settle with other victims before even reviewing your claim — and once those policy limits are paid out, you can’t force them to pay more. It doesn’t matter if your injuries are worse or your medical costs are higher. Once the policy is exhausted, your only recourse is to pursue the at-fault driver personally, who often lacks sufficient assets to pay.
That’s why time is critical after a car accident. Acting quickly allows your attorney to investigate, send notice of representation, and preserve your claim before the limited insurance funds are gone. It’s also a good reason to carry uninsured/underinsured motorist coverage (UIM) on your own policy — this extra protection can step in when the at-fault driver’s insurance isn’t enough to cover your losses.
