What are Texas’s Car Insurance Requirements?

Car owners and drivers in Texas are required to purchase liability insurance in case they cause an accident. The victims of car accidents can suffer many different types of injuries, such as traumatic brain injuries, spinal cord damage, broken bones, and back and neck pain.

At Pat Maloney: Accident & Injury Attorney, we file car accident claims against drivers and any other responsible parties, such as employers of a driver. We demand compensation for all your medical bills, lost income, pain and suffering, and property damage.

To ensure that the victims of accidents due to the negligence of Texas drivers have money to pay a car accident claim, Texas requires that car owners and drivers carry a minimum amount of liability insurance. Car owners should also carry other types of insurance to protect themselves, whether they are at fault for the accident or not.

What insurance coverage is mandatory in Texas?

According to the Texas Department of Insurance, all drivers of cars in Text must have the following liability coverage:

• $30,000 for one victim in one accident.
• $60,000 for multiple victims in one accident.
• $25,000 for property damage to the victim’s car.

This combination of insurance coverage is called 30/60/25 coverage.

We recommend that you buy as much insurance coverage as you can reasonably afford. Just one night in a hospital can cost tens of thousands of dollars. Many new cars cost more than $25,000. Drivers can be held responsible personally for any damage amounts that insurance does not cover.

What non-mandatory coverage should car owners buy?

Drivers should consider buying the following insurance coverages in addition to liability coverage:

• Uninsured/underinsured (UM/UIM) coverage: This insurance pays your damages if the driver who is responsible for your car accident does not have any insurance, does not have enough insurance to pay your claim in full, or if the responsible driver is a hit-and-run driver. Auto policies generally include this coverage. If you do not want it, you have to decline it in writing.
• Collision coverage: This coverage pays for the cost of repairing or replacing your car if your car is totaled – regardless of fault.
• Comprehensive coverage: This insurance policy covers non-accidental damage to your car if it is damaged by vandalism, fire, theft, or other covered causes.
• Medical payments coverage: This coverage pays your medical bills up to the policy limits if you are injured in a car accident – even if you are a pedestrian or a bicycle rider – regardless of fault.
• Personal injury protection (PIP) coverage: This coverage pays your medical bills (like medical payments coverage). It also pays for lost income and other non-medical expenses. Car insurance liability policies automatically include PIP coverage – up to specific limits. You can decline the coverage, but you must do so in writing.
• Towing and labor: This insurance coverage pays for the cost of towing your car to a local car repair business and the cost to jump-start your battery or fix a flat tire.
• Rental reimbursement coverage: This insurance pays for the cost of renting a car while your repair company is fixing your car. This policy may also pay for the cost of taxis or rideshare services.

Who does car insurance cover in Texas?

Generally, your insurance policy should explain in writing who the policy covers in the event of an accident. Most insurance policies cover the owner of the policy, their family members, and anyone the car’s owner gives permission to drive the car. Our Texas car accident lawyers will explain if a car insurance policy covers you.

Are there time limits for filing an insurance claim in Texas?

Filing an insurance claim is not the same as filing a personal injury claim or a wrongful death claim. The statute of limitations for a lawsuit against a negligent driver in Texas is generally two years from the date of the accident. Shorter time limits may apply, such as if you have a claim against the Texas Department of Transportation.

The time you need to file a claim with your own insurance carrier is normally set forth in your insurance policy. You should notify your own insurance carrier the day the accident occurs. Normally, you need to identify where the accident happened, the time of day of the accident, and the contact information for the other drivers involved in the accident.

Typically, you do not notify the insurance company/companies for the responsible driver/drivers. Our personal injury lawyers will do that for you. You should not speak with the insurance company for the responsible driver(s) – instead, you should tell them to call us. You should never settle your claim with the insurance company/companies because you need experienced lawyers who understand who is responsible, what your case is worth, and what damages each insurance company should pay you.

Insurance coverage if you drive other vehicles in Texas

The Texas Department of Insurance states that if you buy a new car or a second car, you should inform your insurance carrier as soon as possible. If you rent a car, you should check with your carrier and carefully review the rental insurance policy to determine what insurance coverage protects you.

You also need to be careful if you borrow another person’s car. The owner’s policy may not cover you unless the policy identifies you as a driver. Parents with children who drive should be sure to name those children as drivers on the policy.

How does shared liability work in Texas?

In some car accident cases, our team files a claim against multiple defendants. Several drivers may be liable. The driver’s employer may be liable. The owner of the car, if different than the driver, may be liable. Each defendant should have their own insurance coverage. Our lawyers understand which clients are responsible and which of the defendant’s insurance policies should pay for your damages.

If you are partially responsible for a car accident in Texas, you can still receive compensation if you were not more at fault than the other defendant(s). The amount of insurance payments you will receive will be adjusted to reflect your degree/percentage of fault.

Insurance carriers and adjusters are not your friends. They want to either deny your claim or pay you as little as possible. They will do everything they can to show their client is not liable and that your injuries are not very serious. To assert your right to insurance benefits after a car accident in Texas, call Pat Maloney: Accident & Injury Attorney, or fill out our online contact form to schedule a free consultation. We handle Texas car accident claims on a contingency fee basis.