Understanding basic auto insurance coverage is important to be sure that you are in compliance with Texas law and also important to ensure you are adequately covered when an accident happens. Here is a quick list of the eight basic types of auto insurance coverage.
- Liability coverage: This coverage is to cover third parties involved in an auto accident. It affords coverage for the cost of repairing the other driver’s car in an accident that you caused. The minimum limit for liability coverage required by Texas law is $30,000 for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This type of coverage is often called “30/60/25 coverage.” It is important to note that these limits are the minimum required by Texas law. It is best to consider buying more coverage. Often times, accidents result in damages in excess of these limits. If you don’t have enough limits to pay for the damages and injuries you cause in an accident, it is possible that you could be sued to cover the difference by the other driver.
- Collision coverage: This coverage provides first party coverage to pay to repair or replace your car after an accident.
- Comprehensive (other than collision) coverage: This coveragepays in the instance it is damaged or lost by a cause other than collision, including damage by fire, flood, vandalism or something other than a collision.
- Medical payments coverage:This coverage covers your and your passengers’ medical bills. It is a form of first-party coverage that is extended to passengers. It also covers in the case you are hurt while riding in someone else’s car or while walking or biking.
- Personal injury protection (PIP) coverage: This coverage is similar to medical payments coverage. It is first-party coverage that is also extended to your passengers. It also covers your and your passenger’smedical bills but includes payment for lost wages and other nonmedical costs. There is no right of subrogation associated with PIP coverage, which is advantageous in the case of a personal injury claim. Importantly, all policies in Texas include PIP coverage. You must specifically reject this coverage if you do not want it in writing. Take extra caution when reviewing your insurance documents and be sure you do not reject this coverage as part of the execution of documents prepared by your insurer. Also, it is good practice to be sure you tell your agent you want this coverage.
- Uninsured/underinsured motorist coverage: UM/UIM coverage provides coverage if you are hit by someone who did not have insurance or did not have enough insurance to pay your medical and car repair bills. It also provides cover if you are involved in a hit-and-run accident and are unable to identify the at-fault party. This coverage is similar to PIP coverage in that you must specifically reject it in writing if you do not want it. Take extra caution when reviewing your insurance documents and be sure you do not rejectthis coverage as part of the execution of documents prepared by your insurer. Also, it is good practice to be sure you tell your agent you want this coverage.
- Towing and labor coverage: This coverage provides cover for the cost to tow your car if it cannot be driven. It also pays for labor to change a flat tire or jump-start your battery.
- Rental reimbursement coverage: This coverage provides cover for the cost for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services. It is important to know the specifics of this type of coverage in the event you are in an accident to ensure you are not stuck paying these costly charges at the conclusion of your claim.
The lawyers of LeMaster & Ahmed PLLC are here to help those that suffer personal injuries as a result of car accidents. Contact us at our Houston location at 832-356-7983 or our DFW location at 972-483-0410. You can also message us any inquiries directly on our website.
***The foregoing is not meant to serve as legal advice relating to your personal injury claim. Please contact one of our lawyers if you have questions specific to your particular insurance issue.