Your Own Insurance Policy

It is mandatory under Texas law that all car, truck and motorcycle owners carry at least the minimum amount of liability insurance coverage. The current state law requires that each owner have at least $25,000 in liability coverage per person and $50,000 in coverage per accident. This type of insurance is used to compensate others if you are at fault in the accident.

But, let's say you are in an automobile accident where the other driver is at fault. What sort of insurance applies to compensate you for your injuries? If you are lucky enough that the at-fault driver has liability insurance coverage, then that is the first place you look for compensation. The Texas Department of Public Safety has estimated that 20% of the drivers on our Texas roads do not carry insurance at all. (I personally think that the number of uninsured drivers is actually higher). So what happens if the at-fault driver has no insurance? As a board-certified injury lawyer, there are several questions I ask next. What was the driver doing at the time of the wreck? Was the driver in someone else's car? What's the driver on the job at the time of the accident? Sometime I find an insurance policy that applies, but lots of times I strike out. Then what?

If there is no additional insurance, I then look at your own insurance policy to see if you carry "uninsured/underinsured motorists" coverage (called "UM/UIM"). This is a type of insurance that you pay for and it covers you in case you were in an accident where someone else is at fault and they don't have insurance. This type of insurance also applies when the other person does not have enough insurance to fairly compensate you. In such a case, you stack your underinsured motors policy on top of the at-fault driver's policy to come up the total amount of available insurance to compensate you for your injuries. You must sign a waiver when you first obtain your policy to deny this type of coverage, otherwise you have the coverage.

Another type of coverage which may be applicable is PIP, which stands for Personal Injury Protection. This covers your own medical bills and lost wages and is paid to you regardless of who was at fault. It covers everyone in your car at the time of the wreck. In Texas, PIP is available in amounts from $2,500 to $100,000 depending on the insurance company. This type of insurance comes in very handy if you are in an accident, even if you have health insurance (and, believe it or not, some health carrier's do not cover bills if the treatment is related to a car accident).

You can make a claim on your PIP regardless of whether the at-fault driver has insurance. I recommend that all of my clients purchase this insurance. Sometimes my clients don't want to make a PIP claim as they are afraid that their rates will go up. By law, Texas insurers cannot raise your rates solely because of a PIP claim. I have never heard that making a PIP claim has this effect, so I always encourage my clients to let me make the claim on their behalf. The way I see it, the big fat insurance companies take your money year after year--let them pay you when you have valid claim.

I am familiar with the many issues which arise on finding coverage and knowing how to make a claim. So please do not hesitate to call me toll free at 817-294-1900 or Contact Me Online about your car accident claim if you have insurance coverage questions.