Insurance Claim Attorneys in Texas

insurance claim attorney

As Texas insurance claim attorneys, we get asked a lot of questions about the ins and outs of auto insurance policies and coverages, and we completely understand why. Auto policies can be confusing, and insurance providers can be deliberately vague in order to upsell you a more expensive package or to skirt responsibility after an accident when you need that claim payout. Worst-case-scenario planning is never fun, and we understand why many people take insurance policy offerings at face value or based on random recommendations.

To help, our Texas insurance claim attorneys put together this list of the basics of coverage types and their applications. Coverage names and meanings can vary between states and between insurance companies, so if you are unclear, ask questions for the answers you need. With any luck, you’ll never need our Texas insurance claim attorneys, but when accidents happen, Thompson Law is here for you.

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Types of Car Insurance Coverage in Texas

When reviewing an auto insurance policy, it’s important to understand the various types of coverage that may be included. Below are some common types of coverage you might find.

Liability Coverage

Liability insurance coverage is a protects you against claims made by others involved in an accident where you are at fault. Specifically, it covers two main areas: bodily injury and property damage. If you’re responsible for injuring another person or damaging their property, this third-party insurance helps pay for their medical expenses and repair costs, safeguarding you from potential financial liabilities.

  • Bodily Injury Liability (BI): Covers personal injury costs caused by an accident. May be allocated per person or per accident. This type of insurance is a minimum coverage requirement in Texas.
  • Property Damage Liability (PD): Covers the damage caused to someone else’s property, other vehicles, structures, or other items lost in the crash, up to a predetermined limit. Legally required as part of a minimum coverage policy in Texas, and nationwide.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage (UM/UIM) is an essential part of auto insurance that provides financial protection in the event of an accident with a driver who either has no insurance or whose insurance limits are insufficient to cover the damages. If you are involved in a collision with an uninsured driver, this coverage ensures that your medical bills, property damage, and other related expenses are covered.

  • Underinsured Motorist (UIM): Covers you, the policyholder, when the other driver does not have sufficient coverage for all the accident costs. Texas insurance companies must offer this with every policy. Policyholders may elect to opt-out of it by written agreement.
  • Uninsured Motorist (UM): Coverage for you in the case that the other motorist does not have auto insurance. Texas insurance companies must offer you this coverage, and you may elect to opt-out of it by written agreement.

Collision Coverage

Collision coverage is a type of auto insurance that helps pay for damages to your vehicle following a collision with another vehicle or an object, regardless of who is deemed at fault for the accident. This coverage ensures that you can repair or replace your car after such incidents, minimizing your financial burden. While collision coverage is typically optional, many lenders and leasing companies may require it if your vehicle is financed or leased.

Comprehensive Coverage

Comprehensive coverage is a vital part of auto insurance that offers protection against damages to your vehicle that are not the result of a collision. This type of coverage includes a variety of incidents such as theft, vandalism, fire, natural disasters, falling objects, and animal strikes (e.g., hitting a deer or cow).

Unlike collision coverage, which solely addresses accidents involving other vehicles or objects, comprehensive coverage safeguards you from a broader range of unexpected events. By having this coverage, you can avoid substantial financial losses that may arise from non-collision-related damages to your car, ensuring peace of mind as you navigate the roadways.

Personal Injury Protection (PIP)

Personal injury protection (PIP) provides coverage for medical expenses and, in some cases, lost wages for you and your passengers following an accident, regardless of who is at fault. This type of coverage is designed to help alleviate the financial burden related to injuries sustained in a vehicular incident. PIP often covers a range of expenses, including hospital bills, rehabilitation costs, and even funeral expenses in the event of a fatal accident. In many states, PIP coverage is mandatory, although it is not mandatory in Texas.

Medical Payments Coverage (MedPay)

Medical payments coverage (MedPay) insurance is similar to PIP in terms of coverage limits and is often marketed as a more affordable option. Unlike PIP, which may also cover lost wages and other costs, MedPay focuses solely on medical expenses. However, unlike PIP, any MedPay payments must be reimbursed if you receive compensation from the at-fault driver’s insurance, as MedPay holds a lien on your liability claim to recover its costs. Essentially, a MedPay payment functions like a loan, which is why our Texas insurance claim attorneys recommend avoiding it in favor of PIP coverage.

Other Types of Auto Insurance Coverage

In addition to the common coverage options above, drivers may also consider various supplemental types of auto insurance coverage designed to address specific needs.

  • Gap Coverage and Loan/Lease Payoff: This coverage is offered for those who have financed or leased their vehicles. It covers the difference between the amount you owe on your car loan and the actual cash value of your vehicle in the event of a total loss. This protection prevents you from being stranded with a remaining balance on a loan for a vehicle that is no longer operational. Some insurance providers do not offer traditional gap insurance; instead, they provide similar loan or lease payoff coverage, which can cover your outstanding loan or lease balance for up to 25% of your vehicle’s actual cash value. While certain lenders may mandate these coverages, no states officially require gap insurance or loan/lease payoff coverage.
  • New Car Replacement Coverage: Provides the full replacement cost of a new vehicle if your current one is deemed a total loss within a certain timeframe, usually within the first year or two of ownership. This coverage can help prevent depreciation-related losses when replacing a new car.
  • Rental Reimbursement/Transportation Expense Coverage: Provides financial assistance for renting a vehicle or other transport options while your car is being repaired due to a covered accident. This coverage is particularly useful for individuals who rely heavily on their vehicles for daily commuting or other essential activities, and is also commonly referred to as loss of use insurance.
  • Towing and Labor Cost Coverage: Offers assistance when you encounter roadside emergencies. It covers the costs associated with towing your vehicle to a repair shop and may also include expenses for minor repairs made at the scene, such as flat tire changes or battery jumps.
  • Ride-Share Coverage: This coverage ensures that the driver is protected while using their personal vehicle for commercial purposes (e.g., Uber, Lyft), addressing gaps that traditional auto insurance might not cover during rideshare activities.
  • Classic Car Insurance: Designed for antique or collector cars. This type of policy accounts for the unique value and needs of classic vehicles, offering benefits like agreed value coverage, which ensures the car is insured for its appraised value, rather than the depreciated market value.

What Coverages Are Insurance Companies Required to Offer in Texas?

The Texas Safety Responsibility Law (n/k/a the Motor Vehicle Safety Responsibility Act) requires all drivers to have insurance. Under this law, your agent must offer you Personal Injury Protection (PIP), Uninsured Motorist (UM), and Underinsured Motorist (UIM) coverage. If you choose not to purchase these coverages, you must submit a written rejection for each, which includes a paragraph stating you were offered the coverage but are declining it, along with a space for your signature.

Occasionally, agents may neglect to collect these rejection signatures, or they may get misplaced. If you file a claim for PIP, U/M, or UIM and are informed by your agent or adjuster that you did not purchase these coverages, they must provide your signed rejections. If they cannot, they are obligated to cover you for the minimum limits of $2,500 for PIP and $30,000 for UM and/or UIM.

Important Terms for Auto Policies

When navigating auto insurance policies, understanding key terms is vital for making informed decisions. Two fundamental concepts our Texas insurance claim attorneys want to ensure you understand are deductible and premium.

The deductible is the amount you are required to pay out-of-pocket before your insurance coverage kicks in during a claim. For example, if you have a $500 deductible and incur $2,000 in damages, you’ll pay the first $500, and your insurer will cover the remaining $1,500. Higher deductibles typically result in lower premiums but can lead to more substantial out-of-pocket costs when filing a claim.

The premium, on the other hand, is the amount you pay for your insurance policy, usually billed monthly or annually. Factors influencing the premium include the type of coverage, the vehicle’s make and model, driving history, and geographical location. Understanding these terms can help you better evaluate your options and select an auto insurance policy that aligns with your financial situation and coverage needs.

Texas Auto insurance claim attorney

The Main Auto Insurance Companies in Texas

You likely know all the big names in insurance – GEICO, Progressive, Liberty Mutual, State Farm, Farmers, USAA, and Allstate. They spend millions and millions of dollars in advertising with flashy celebrity ads to gain your business. However, there are many more insurance providers than just those mega-corporations. There are pros and cons to purchasing your insurance policy from any type of insurer, from the largest corporate conglomerate to the local mom and pop shop.

If there’s any consensus about the worst insurer, however, recent news reports and investigative journalists have found that there is one company out of the large firms that consistently performs terribly toward those bringing claims and even toward their own customers – Allstate. Allstate has been criticized for excessively low settlement offers and outright claim denials.

They also famously came under fire for having a “suckers list” that included clients who they knew they were overcharging in premiums and deductibles. They targeted these consumers, knowing that their deserved market rate was far less, but they were able to continue charging and increasing costs based on these customers’ habits and spending potential.

The ethics of these companies are not always admirable. The good news is, there are resources available to you as you decide what insurance to choose. You should be able to expect better from your insurance company. You are their client! But when things inevitably go wrong in insurance negotiations, know that our Texas insurance claim attorneys are standing by to help you, anytime 24/7.

Minimum Auto Insurance Requirements in Texas

You may have heard the terms 30/60 coverage, or that Texas is a 30/60/25 state. These descriptors refer to Texas’ minimum requirements for auto insurance, otherwise known as liability coverage. The coverage breakdown includes:

  • $30,000 bodily injury liability (BI) per individual
  • $60,000 bodily injury liability (BI) per accident
  • $25,000 property damage liability (PD)

After an accident where the at-fault party has liability coverage, payouts up to these amounts may be issued based on loss and injury caused from that accident. If losses are higher than these amounts, claims may be made to other parties’ insurance, and lawsuits may be brought against individuals.

Additionally, it is required in Texas that insurance providers offer UM/UIM and PIP. Policyholders may formally reject these coverages in writing. It is important to understand as a policy owner that if you are involved in a collision with an at-fault party who does not have insurance, or has inadequate insurance, it is difficult to recover damages for your injuries without UM/UIM and/or PIP.

Our clients often seek our help as Texas insurance claim attorneys because they have been hit by a driver who only has liability coverage. These coverage amounts are simply not enough to cover the medical bills, car repairs and other damages that occur in many auto accidents.

Minimum car insurance requirements differ by state in the United States, so it is important your attorney understands the differing policies which may be in place for out-of-state drivers. If you need an insurance claim attorney after being hit by an uninsured, underinsured, or minimally insured driver, don’t hesitate to reach out for the assistance you deserve. Your team at Thompson Law is standing by and ready to fight for you.

Recommended Auto Insurance for Financed Cars

When you are still in the process of making payments on your car loan, your lender determines the level and type of coverages that you must have. If you do not comply with the policy limits required, you risk being in default of your loan, which has serious consequences for your credit and future ability to take out other loans. Lenders have this control during the term of your loan because they are the actual owner of your vehicle until it is paid off.

The following list includes recommended coverage amounts by Texas auto insurers and Texas insurance claim attorneys. Your lender may require different amounts from these guidelines, based on the specific value of your car and other factors.

Type of Coverage and Recommended Amounts

  • $100,00 bodily injury liability (BI) per individual
  • $300,000 bodily injury liability (BI) per accident
  • $50,000 property damage (PD)
  • Comprehensive collision coverage
  • Underinsured/Uninsured motorist coverage (UM/UIM)
  • Personal injury protection (PIP)

Texas Auto Insurance Types: The Bottom Line

The minimum auto insurance requirements for the state of Texas rank well when compared nationally. Texas’ minimum required liability coverage is higher than most other states, except a few like Alaska and Maine. In addition to bodily injury coverage per person, bodily injury coverage per accident, and property damage coverage per accident, 21 states in the US (plus the District of Columbia) mandate some amount of coverage for underinsured or uninsured motorists.

Selecting coverage that is right for you and for your family is an important decision. Our Texas insurance claim attorneys hope this guide to the types of coverage available and the implications of minimum versus recommended coverage are helpful. And hopefully, you won’t need to file an insurance claim by staying safe and accident-free. No one expects to need Texas insurance claim attorneys after a wreck. However, should you need any help with an accident claim, a difficult insurance adjuster, or you are just hitting an insurance corporation stonewall, Thompson Law is always here to help.

Call Our Texas Insurance Claim Attorneys for a FREE CONSULTATION

The State of Texas has a statute of limitations of two (2) years for personal injury cases, so if you have been in a car accident, truck accident, or any other personal injury incident, consult with our Texas insurance claim attorneys.

The sooner you know your options, the sooner you are on a smooth path to recovery and your deserved compensation. If you’ve been hesitating to reach out, don’t delay any further. Call the Texas insurance claim attorneys at Thompson Law right away for assistance with your injury and claim.

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State law limits the time you have to file a claim after an auto accident. If you have been injured in an accident, call now to get the help you need.