Texas Auto Insurance: What You Need to Know

When you are injured in a car wreck, there is usually more than one insurance policy available to cover your injuries. Ideally, the person who caused the wreck would have a car insurance policy to cover all of the damages caused by their negligence.

Unfortunately, that is not always the case. Texas law requires that each driver carry a minimum amount of insurance. Each driver must have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.

Most often, a minimum policy is not enough to cover the serious injuries suffered in a car wreck. Communicating with your car insurance company is essential to ensure all damages are covered and to understand your coverage options. Insurance companies determine insurance premiums based on various factors, including driving history and vehicle type.

Understanding Auto Insurance Requirements in Texas

Texas drivers must pay for the costs of car accidents they cause. If another driver causes an accident resulting in injury, the victim or victim’s family may be able to recover compensation through a personal injury or wrongful death claim.

Liability insurance coverage of the at-fault driver covers the following expenses incurred by someone damaged by an insured’s negligence or wrongdoing:

• Medical and funeral costs, lost wages, compensation for pain and suffering
• Car repair or replacement costs
• The cost of a car rental

While minimum liability insurance meets legal requirements, it may not be sufficient to cover all damages in a serious accident.

Other Policy and Insurance Options

Although Texas law only requires liability coverage, insurance companies offer a variety of policy options that can provide additional types of coverage to protect a driver in the event they cause an accident or are the victim of an accident, such as:

• Liability coverage
• Collision coverage
• Comprehensive coverage
• Medical payments coverage
• Personal injury protection (PIP) coverage
• Uninsured/underinsured motorist coverage
• Towing and labor coverage
• Rental reimbursement coverage

In the event that a person is injured in a car wreck by another driver who is not carrying any insurance or is not carrying enough insurance to cover the cost of the damages suffered, our car accident attorney in Abilene, TX looks to the other policy options and communicates with the insurance company to try to collect as much money as possible to compensate clients for the damages they suffered.

Understanding Texas car insurance requirements is essential for ensuring compliance with state laws and avoiding penalties. Below is a description of a few of the insurance policy options Chaile Allen may be able to collect on behalf of her clients:

Collision Coverage

Collision coverage pays to repair or replace your car after an accident.

Medical Payments Coverage

Medical payment coverage pays your and your passengers’ medical bills. It also pays if you’re hurt while riding in someone else’s car or while walking or biking.

Personal Injury Protection (PIP) Coverage

PIP coverage is insurance money that pays you from your own policy when you are involved in a car accident, regardless of who is at fault. PIP is required by law to be part of an auto policy that is written in the state of Texas unless the insured waives the coverage in writing.

The statutory minimum personal injury protection coverage is $2,500. However, the PIP coverage can be written in higher amounts should you need additional coverage.

PIP covers everyone in the insured vehicle up to the PIP policy limits. PIP also covers every insured regardless of what vehicle they are in at the time of an accident.

Payments under the PIP policy apply to covered losses that are incurred within three years of the accident date. Generally, the insurer must pay the claim within 30 days of receipt of the claim.

Personal injury protection provides payment for the following:

• Medical expenses related to the wreck
• Replacement of lost income
• Reimbursement for reasonable and necessary expenses incurred for central services normally performed by the injured person for the family or the household

Uninsured or Underinsured Motorist Coverage

In theory, every driver on Texas highways is covered by liability insurance to protect other drivers. In reality, some people drive without insurance, or they hit and run, or even if they have the minimum coverage required by law, it is not enough to cover the other driver’s damages. This is where uninsured coverage and underinsured coverage come in.

Uninsured/underinsured motorist coverage pays if you’re hit by someone who didn’t have insurance or didn’t have enough to pay your medical and car repair bills. It also pays if you’re in a hit-and-run accident. Insurance companies must offer you this coverage. If you don’t want it, you must tell the company in writing.

An uninsured driver is someone who either has no insurance or who hits and runs. An underinsured driver is one who does have liability insurance but in an amount that is not enough to cover the other driver’s damages in a situation.

How to Choose the Right Coverage

Choosing the right auto insurance coverage is crucial not only to comply with Texas laws but also to ensure adequate protection in the event of an accident. The following are some steps and considerations to help you select the most appropriate coverage for your needs:

Assess Your Needs

Some things to consider before choosing a coverage plan include: 

• Vehicle Value: If you drive a newer or more expensive vehicle, you might benefit from collision and comprehensive coverage, which can help cover repair or replacement costs.
• Driving Habits: Consider how often you drive, your driving record, and whether you frequently travel in heavy traffic or over long distances. These factors can influence the likelihood of accidents and the type of coverage you need.
• Financial Situation: Evaluate your financial stability. Higher coverage limits can protect you from out-of-pocket expenses in the event of a major accident, but they also come with higher premiums.

Compare Quotes and Policies

Prices and offerings can vary significantly between insurers, so it’s important to get quotes from several companies to find the best rates and coverage options. Also, look at customer reviews and ratings for insurers to gauge their customer service and claims processing efficiency.

Review Your Coverage Annually

Your insurance needs can change over time due to factors like aging vehicles, changes in financial status, or even shifts in your driving patterns. Review and adjust your policy annually to ensure it still meets your needs.

Tailoring Your Policy

Remember, the cheapest policy is not always the best. Aim for a balance between cost and coverage, ensuring that you are well-protected against potential financial burdens following an accident. By carefully considering your needs and the available options, you can choose an insurance policy that provides peace of mind while on the road.

Penalties for Non-Compliance

In Texas, driving without the legally required auto insurance is a serious offense and can lead to multiple penalties that impact both your wallet and your driving privileges. Here’s what Texas drivers face if caught without adequate insurance coverage:

Financial Penalties

The initial fine for driving without insurance ranges from $175 to $350. Repeat offenders can face fines up to $1,000, depending on the number of offenses. Texas also employs a Driver Responsibility Program that imposes an annual surcharge of $250 for three years on drivers who are caught without insurance.

Legal Consequences

If stopped for a traffic violation or involved in an accident and found to be without insurance, drivers will immediately receive a citation. Drivers may also be required to appear in court to provide proof of insurance. Failure to appear can lead to additional fines and legal repercussions.

License and Registration Penalties

For repeated violations, the Texas Department of Motor Vehicles (DMV) can suspend your driver’s license. In some cases, particularly following an accident or a repeated offense, your vehicle may be impounded until proof of insurance is provided.

Reinstatement Fees

If your license is suspended due to lack of insurance, you will be required to pay a reinstatement fee. This fee varies based on the number of suspensions and can be quite substantial. To reinstate your driving privileges, you must also provide proof of current, valid insurance coverage, which may come with higher premiums due to your lapsed coverage.

Impact on Future Insurance Premiums

Driving without insurance can also categorize you as a high-risk driver, leading to increased insurance premiums. Insurance companies often charge higher rates for drivers who have gaps in their insurance history or who have been fined for driving without insurance.

Prevention is Key

The easiest way to avoid these penalties is to maintain continuous, adequate auto insurance coverage. Drivers should ensure their policy meets Texas’s minimum liability requirements and consider additional coverage based on their individual needs and circumstances. Regularly reviewing your auto insurance policy can help you stay compliant and avoid the steep costs associated with non-compliance.

Process of Filing an Auto Insurance Claim

Understanding the steps involved in filing a car accident claim can help ensure that your case is handled efficiently and effectively. The following is what you need to know about filing an insurance claim in Texas:

Step 1: Gather Information at the Scene

Obtain contact and insurance information from all drivers involved. This includes names, addresses, phone numbers, and insurance policy numbers. If there are injuries or significant damage, report the accident to the police. Also, obtain a copy of the police report, as it will be important for the claims process.

Step 2: Notify Your Insurance Company

Contact your insurance provider as soon as possible to report the accident. Stick to the facts, as adjusters may use your statement against you. Chaile Allen can protect your rights during the claims process, as insurance entities may devalue or minimize the compensation you deserve for injuries.

Step 3: Claim Assessment

Your insurer will assign an adjuster to assess the damage, review the accident report, and determine fault according to Texas law. The adjuster may inspect your vehicle or request that you take it to a certified repair shop for a damage estimate.

Step 4: Coverage Review

The adjuster will review your insurance policy to determine what coverages apply to your accident. This includes liability, collision, comprehensive, and any additional coverage. In Texas, the amount you can recover may be reduced if you are found partially at fault for the accident. You may not recover damages if you are found to be greater than 51% at fault. 

Step 5: Settlement Offer

Based on the adjuster’s findings and your policy coverage, the insurance company will make an offer to cover repairs and medical expenses. If you believe the settlement offer is insufficient, The Law Firm of Chaile Allen can negotiate with your insurer.

Step 6: Claim Resolution

Once a settlement is agreed upon, the insurance company will provide compensation for repairs and other covered expenses. After all payments are made, the claim is considered closed. However, keep all documentation for a period in case of discrepancies or further issues.

Tips for a Smooth Claims Process

For a smooth claims process, it’s important to: 

• Be Honest and Thorough: Provide accurate and detailed information about the incident to avoid delays.
• Keep Records: Document all communications with your insurance company, including dates, times, and the names of representatives you speak with.
• Understand Your Rights: Know your rights under Texas insurance law. If you’re unsatisfied with how your claim is handled, you can contact an attorney or the Texas Department of Insurance for assistance.

While the process may seem complex, being prepared and understanding the steps involved can help make the insurance claim process as smooth as possible.

Protect Your Rights After a Car Accident – Contact The Law Firm of Chaile Allen

If you’ve been injured in a car wreck, navigating the complexities of insurance coverage can be overwhelming. The Law Firm of Chaile Allen is here to help you explore all available options to maximize your recovery. Chaile Allen understands the nuances of Texas auto insurance laws and can identify multiple avenues for securing maximum compensation, even when the at-fault driver’s coverage falls short.

Our deep local roots and client-focused approach ensure that you receive the personalized attention you deserve. Call us today at (325) 670-9282 or visit our contact form to discuss your case and learn how we may be able to help you secure the compensation you deserve.