Car insurance is something many of us take for granted.
We pay our premiums and forget about it until we need to file a claim.
If you’re in a car accident, it’s crucial to understand how insurance works.
You might not know how much coverage applies or who’s responsible for injuries.
Do you even have the right insurance?
What happens if your car is totaled or the other driver has no insurance?
Let’s look at ten key things you should understand about car insurance.
1. What is Liability Insurance?
Texas law requires drivers to carry auto liability insurance.
This insurance pays for another person’s expenses when you cause an accident.
It includes medical costs and property damage.
The minimum coverage is $25,000 per person and $50,000 per accident.
Texas offers hefty fines and penalties for individuals caught driving without auto insurance.
Failure to produce valid auto insurance amounts to a minimum fine of $175 and a maximum of $350.
If there are multiple instances a driver can be charge much harsher fees and can even lose their license.
2. What are Damages?
There are two types of damages: compensatory and punitive.
Compensatory damages cover medical bills, lost wages, future income, and pain.
Punitive damages punish a driver for reckless behavior.
A jury only awards these if the other driver acted outrageously, such as driving drunk.
They will choose the appropriate damages after hearing the trial evidence.
3. What is the difference between Collision and Comprehensive Insurance?
Collision covers damages to your own vehicle in an accident with another vehicle or object, for example a tree or guardrail. Comprehensive insurance covers damage to your car caused by something other than a collision, such as a fire, natural disaster, falling object, theft or vandalism. Neither collision or comprehensive policies will cover damages to another person’s vehicle or property.
4. What is Full Coverage Car Insurance?
Full coverage policies usually include collision and comprehensive coverage. These two types of coverages are often paired together as they both protect you against different types of accidents that could happen involving your car. You’ll want to make sure your policy includes these coverages if you’re looking for complete protection on the road; it’s one way to ensure that you’re never left wondering what happens next after a serious accident!
5. What is Uninsured Coverage?
Uninsured coverage protects you if you are hit by a person that does not have liability insurance coverage. In this case, your personal uninsured coverage will help pay for damages even if you are not at-fault for the accident. Texas does not require Uninsured Coverage but it is always a good idea to carry it. This can help you from paying out-of-pocket for a car accident that was not your fault.
6. What is Underinsured Motorist Coverage?
Underinsured coverage protects you if you are hit by a person that does have insurance but the policy amounts aren’t large enough to cover your damages and/or medical bills. The at-fault driver’s insurance will typically pay for all damages up to his or her auto insurance policy limits, then your underinsured motorist coverage may cover the excess amount up to the limits you select when you purchase your policy.
7. What is Personal Injury Protection (PIP)
Personal injury protection is a type of car insurance that covers the medical costs in case after an auto accident. It will pay for some of your medical bills, lost wages, and funeral expenses if you are seriously injured. In Texas, personal injury protection (PIP) insurance is mandatory, unless you sign a waiver declining the coverage. Rejecting the coverage may leave you unprotected if you’re suddenly injured in an accident and face high medical bills or lost wages.
8. What is the Difference in First and Third Party Benefits
First-party coverage protects your own car and property.
Third-party coverage pays for damages caused by someone else.
Ideally, the other driver’s policy should pay if they caused the accident.
However, insurers often underpay claims.
You should speak to a Texas personal injury lawyer before accepting any offers.
9. What is the Difference in Limited Tort and Full Tort?
Limited tort policies only allow claims for medical bills and lost wages.
Full tort coverage allows you to seek pain and suffering damages too.
Choosing full tort gives you more rights and better protection after a crash.
10. What about Worker’s Compensation?
Workers’ compensation applies if the crash happened while you were working.
To qualify, the injury must occur during your job duties.
If approved, your employer’s insurance will pay for your injuries and related costs.
Contact a Texas Personal Injury Attorney to Discuss Car Insurance Coverage
Understanding car insurance in Texas helps you stay protected.
Shopping for policies might seem like a hassle, but it’s worth the time.
Knowing your coverage gives peace of mind after an accident.
Before selecting a policy, educate yourself on all the options available.
If you’re hurt in a crash and your insurer won’t cooperate, call Adam Miller, The Texas Bulldog, at 713-572-3333.
Our team has years of experience and can help guide you through the process.
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