One of the worst realizations is when you find out your insurance is not providing the coverage you expected after an incident. Many of us walk around without understanding what is required or included in our car insurance. You may be overpaying for policies you don’t need or be dangerously underinsured, leaving yourself vulnerable to expensive liabilities.
At Farah Law, we work with clients who deal with these situations, and our El Paso and Houston car accident lawyers want you to feel informed and able to make car insurance decisions that make sense in your life.
Car Insurance Coverage Requirements in Texas
Texas requires drivers to prove they can pay for damages in an accident. Most drivers will do this by purchasing car insurance with a minimum of 30/60/25 coverage. The Texas Department of Insurance Auto Insurance Guide breaks this down to $30,000 in coverage for injuries per person, up to $60,000 per accident, and $25,000 of coverage for property damage.
So, what does car insurance cover? The Auto Insurance Guide explains that several car insurance components are available, including and in addition to the minimum requirements.
Liability Coverage
Liability coverage is the type of policy required for Houston drivers. This covers the cost of injuries and property damage to someone else if you cause an accident. While the minimum coverage is 30/60/25, it may be wise to purchase more coverage than that. You may be held responsible for the difference if you cause an accident with a higher cost than your policy covers.
Underinsured/Uninsured Driver Coverage
Uninsured driver coverage is a policy that protects you in case an uninsured or underinsured driver hits you. This may also come into play for a hit-and-run where no one is identified to hold accountable. You can file a claim with your insurance to utilize coverage for the lack of insurance or the difference in your costs from the other parties’ policy limits.
Collision Coverage
A collision policy covers damages to your vehicle if you cause an accident. The state does not require this, but your financial institution will often require proof of collision overage if you have financed your vehicle. Without collision coverage, any vehicle repair or medical care expenses for your damages will come out of your pocket.
Comprehensive Coverage
Comprehensive coverage will cover damage to your vehicle for incidents beyond an accident. This may include vandalism, theft, or damage from natural disasters. If you have financed your vehicle, this is often required.
Medical Payments and Personal Injury Protection
These policies provided additional protection for medical costs to you or your passenger. Medical payment coverage is an additional add-on, but all auto insurance policies provide Personal Injury Protection that includes coverage for lost wages and nonmedical costs. If you want to opt out of PIP coverage, you can submit the request to your insurance provider in writing.
Towing and Rental coverage
You may choose to purchase additional coverage for towing services, labor, and parts costs, such as battery replacements. You may also purchase additional rental reimbursement coverage to help cover rental costs if your car has been stolen or needs repairs. This may sometimes include ride-sharing service reimbursement, but this can vary depending on the policy.
What Is Not Covered by My Car Insurance?
Many of us walk around with the state minimum coverage, thinking we are protected, only to find out that we have no protection for our own assets if we are at fault. For this reason, it can be incredibly beneficial to know what car insurance covers vs. what car insurance does not cover. In most cases, your car insurance will not cover:
- Damage that you did intentionally
- Equipment that is not permanently installed in your car
- Accidents that happen in Mexico
- Accidents that happen while you are driving for business, including Uber, Lyft, or Grubhub
- Accidents that happen while you are borrowing a car
- Costs beyond the policy limits
If you use your car for business, including ride-sharing or personal shopping services, you may purchase additional policies to cover that time. Still, the standard personal liability or collision often will not cover business-related accidents.
Rentals
Many people assume that their car insurance or insurance through their credit card will cover an accident if they use a rental car and forgo the liability waiver and rental insurance. In some cases, your insurance may cover you as usual, but the insurance offered by credit card holders is often secondary to your own insurance policy. This can be helpful but often doesn’t supply the coverage most people would expect.
Texas Is an At-Fault State for Insurance Claims
States can choose to operate under two insurance guidelines known as at-fault or no-fault. The primary difference between these is which insurance company is responsible. In a no-fault state, you would file a claim under your own insurance regardless of who is responsible for the accident.
However, the Texas transportation code follows an at-fault model, meaning the driver responsible for the accident is responsible for covering damages to both parties. The benefit of an at-fault model is that you are expected to bear the cost of someone else’s accident by claiming your insurance. One of the downsides is that it can take longer to approve your claim if the other party tries to deny liability.
Additionally, even if you have an incredible policy with high coverage limits that would cover your costs, you may not receive your full compensation due from the other person if your claims exceed their limits. If this happens, you can speak with an attorney about other avenues to pursue compensation.
Contact Our El Paso and Houston Car Accident Lawyer Today
Car insurance can feel overwhelming, and while it doesn’t have to be that way, insurance companies can make it more complicated than it should be. If you are worried the insurance isn’t covering something they should, it can worsen an already overwhelming situation. Contact Farah Law for a free case consultation to discuss your situation and explore your available options.
No one should have to endure the consequences of someone else’s poor choices, and while we can’t take away your injuries, we can help you seek justice and hold the responsible parties accountable. You don’t have to suffer alone, so call us today.
