Texas Auto Insurance Coverages Explained

Auto insurance is something most drivers don't think about until they have to.

Most people purchase insurance without giving it much thought or without knowing exactly what their policy covers.

When a car accident occurs, drivers must deal with their insurance company. When an accident occurs as the result of another driver's negligence - and injuries result - many choose to work with a personal injury lawyer.

At Abraham, Watkins, Nichols, Sorrels, Agosto & Aziz, we represent victims of car crashes caused by others' negligence or wrongdoing. If you have insurance-related questions and wish to speak to one of our lawyers in a free consultation, please complete our online contact form.

Otherwise, read the following for basic information about auto insurance coverage in Texas.

Understanding Auto Insurance Requirements In Texas

Drivers in Texas are required to pay for the costs of car accidents they cause. If another driver causes an accident resulting in injury, the victim may be able to recover compensation through a personal injury or wrongful death claim.

Most people purchase car insurance to cover the costs in the event they cause an accident. In fact, Texas law requires drivers to carry liability insurance, which covers the following expenses incurred by people damaged by an insured's negligence or wrongdoing:

  • Medical and funeral costs, lost wages, compensation for pain and suffering;
  • Car repair or replacement costs; and
  • The cost of a car rental.

Although Texas law only requires liability coverage, many insurance companies use a standardized policy form known as the Texas Personal Automobile Policy that offers eight types of coverage:

  • Liability coverage;
  • Collision coverage;
  • Comprehensive coverage;
  • Medical payments coverage;
  • Personal injury protection (PIP) coverage;
  • Uninsured/underinsured motorist coverage;
  • Towing and labor coverage; and
  • Rental reimbursement coverage.

Most drivers in Texas elect to carry some of the optional coverages offered in the Texas Personal Automobile Policy.

More information is available on the Texas Department of Insurance website.

What Is Personal Injury Protection Insurance?

Personal injury protection insurance (PIP) is included in most auto insurance policies in Texas. Insurance companies automatically provide PIP coverage, but policyholders may reject it in writing if they don't want it. It covers some medical expenses, 80 percent of lost wages and the cost of hiring a caregiver while the injured is recovering.

PIP insurance applies no matter who was at fault. This includes coverage for the driver, passengers and anyone else injured in a crash.

Insurance companies must offer $2,500 worth of PIP coverage, but policyholders can purchase more.

Questions? Talk To An Attorney Today.

If you have additional questions about insurance coverage after an auto accident, do not hesitate to contact us to schedule a free consultation.

Simply call our Houston law office at 800-580-9121 or 713-587-9668 to set up a time to meet.