Car insurance is a bit confusing to understand due to the language used in policy contracts. It’s also not the most interesting material to read, but it’s important for you to understand.
Many people think that if they get into an accident, their auto insurance company will take care of everything. However, that’s not exactly the case. Insurance companies use many tactics to keep the payout low for car accident victims. Understanding your insurance policy will help you to better protect your rights in the event of a crash.
The Basics of Car Insurance in Texas
If you don’t understand your insurance policy, you can’t understand the rights you have under the law. Here is what to know about your coverage.
Liability Coverage
Liability coverage will pay for medical expenses, lost wages, property damages, pain and suffering, funeral costs, and other losses. The insurer will pay these costs on your behalf up to the policy limit. In Texas, you are mandated by law to carry $30,000 per injured person, $60,000 for injuries per accident, and $25,000 for property damage.
Collision and Comprehensive Coverage
You may want to add collision coverage to repair or replace your vehicle if it’s damaged in an accident. Comprehensive coverage is another additional option that can cover you in the event of theft, fire, or a natural disaster. It may be required by your lender if you have an auto loan, though it’s not required by the state.
Medical Payments Coverage and Personal Injury Protection
Medical payments coverage pays for medical bills and funeral expenses from a car crash up to your policy limit while personal injury protection (PIP) will provide 80% of your lost income while you recover from your injuries after an accident. Neither is mandated, though, in Texas, insurers are required to offer you PIP coverage. If you do not want it, you need to provide a statement in writing to reject it.
Uninsured/Underinsured Motorist Coverage
This optional coverage must be offered like PIP and rejected in writing if you do not wish to have it. However, it’s extra coverage that may come in handy if you are in an accident caused by a driver without insurance or who does not have enough coverage to pay for your expenses.
How to Deal with Car Insurance After an Accident
The laws state that you must report any car accident to your own insurer, regardless of who is at fault. They may deny your claim if you do not take this step. Beyond that, you are not obligated to provide a recorded statement. Additionally, you don’t need to speak to the other driver’s insurer.
Things can get complicated when filing a claim. All too often, many drivers are assigned partial blame. This would then reduce the compensation you could receive. If you work with a car accident attorney, you can avoid the common pitfalls that arise when making a car accident claim.
