Types of Auto Insurance (Required and Optional) in Texas
If you are ever in a crash, the type of auto insurance coverage you and the other driver purchased and the amount of the policy limits will at least partly determine the extent of your financial recovery and how you will go about seeking compensation. Below we highlight some of the key aspects of mandatory auto insurance coverage in Texas, along with optional coverages that can offer extra security and peace of mind. If you or a loved one has been hurt in a crash caused by a negligent driver in Beaumont, Southeast Texas or statewide, contact the Gilbert Adams Law Offices for advice and representation from an experienced and successful Texas personal injury lawyer.
Minimum Liability Insurance Required by Texas Law – the “Minimum Limits” – to Protect Others in the Event You Are Determined At-Fault in Causing the Collision
In Texas, drivers are required to carry minimum liability insurance, which covers the costs associated with injuries or damage you may cause to other people or their property in a collision. The minimum liability coverage in Texas is often referred to as 30/60/25 coverage, as it includes the following:
- $30,000 per person for bodily injury
- $60,000 per occurrence for bodily injury
- $25,000 for property damage
This minimum required liability coverage helps ensure that crash victims have access to financial resources for medical bills, vehicle repairs, and other damages. Most people purchase the minimum liability insurance to meet the requirements of the law; however, purchasing more than minimum – and especially UM/UIM coverage – is a good idea to protect not only you but also the members of your household as well as the occupants in your vehicle and is also recommended by the Texas Department of Insurance. The Minimum Limits coverage will protect you up to the amount of the policy limits in the event you are determined to be at fault. The insurance company is required to pay for your lawyer, handle the expenses of the lawsuit and indemnify you for the amount of the settlement or judgment, up to the amount of the policy limits.
Uninsured/Underinsured Motorist Coverage (UM/UIM)
Uninsured/Underinsured Motorist Coverage is designed to protect you, the occupants of your vehicle, and members of your household in the event that you are the victim of a crash caused by the other driver who either has no insurance coverage OR who has inadequate insurance coverage (e.g., only the minimum limits). In Texas, insurers must offer policyholders the option of purchasing UM/UIM coverage, but drivers can reject it in writing. UM/UIM coverage includes the following, in the coverage amount or policy limits which you choose:
- Uninsured Motorist Bodily Injury (UMBI): Covers medical expenses, lost wages, and other injury-related costs if the at-fault driver lacks insurance.
- Underinsured Motorist Bodily Injury (UIMBI): Provides additional coverage when the at-fault driver’s insurance is not enough to cover all the costs.
- Uninsured/Underinsured Motorist Property Damage (UMPD/UIMPD): Pays for repairs to your vehicle if the at-fault driver has no or insufficient property damage coverage.
By recent estimates, 13.8% of Texas drivers are uninsured. That’s more than one in ten drivers on the road in the Lone Star State, increasing the likelihood that a driver who hits you won’t have insurance to pay for your damages. UM/UIM also covers hit-and-run incidents when the responsible driver can’t be found. With today’s inflation the “minimum limits” of $30,000 is often not nearly enough money to cover even the initial hospital bills, much less where additional diagnostic testing, ongoing physical therapy or other forms of medical treatment are needed. The cost to carry UM/UIM is not nearly as high as liability coverage and can provide you, members of your household and the occupants of your vehicle much-needed additional monies for bodily injuries, medical bills, lost wages, etc. in the event the at-fault driver has no insurance or only the “minimum limits.” We highly recommend that you purchase UM/UIM coverage when you can afford it.
Personal Injury Protection (PIP)
Texas law requires insurers to offer Personal Injury Protection (PIP) coverage which is a no-fault coverage. This no-fault coverage reimburses you and the occupants of your vehicle for medical expenses and a percentage of your lost wages, regardless of who was at fault in causing the collision. The standard PIP coverage amount is $2,500, but policyholders can opt for higher limits usually in increments of $2,500. PIP coverage is cheap and is highly recommended. You generally don’t even need to hire a lawyer if you are only making a PIP claim.
Collision and Comprehensive Coverage to cover Property Damage
While not required by Texas law, collision and comprehensive coverage are often recommended. These types of insurance protect your vehicle from various types of damage:
- Collision Coverage: Pays for repairs to your car if it’s damaged in a single-vehicle or multi-vehicle collision, regardless of who is at fault.
- Comprehensive Coverage: Covers non-collision-related damages, such as theft, vandalism, fire, and natural disasters.
If you borrowed money to purchase your vehicle or leased a vehicle, most lenders require that you purchase both collision and comprehensive coverage to protect their loan. For owners who do not owe money on their vehicle, the market value of your vehicle and your ability to replace it are important factors regarding whether to purchase these coverages. The amount of policy limits for these coverages is another important consideration.
Medical Payments Coverage (MedPay)
Similar to PIP, Medical Payments Coverage (MedPay) covers medical expenses for you and your passengers regardless of who is at fault in a crash. The primary difference between PIP and MedPay is that with MedPay coverage, your insurance has a right of subrogation, meaning a right to recover the MedPay payments made to you out of any recovery or settlement you make against the at-fault party. PIP is generally worth the extra premium payment because there is no right of subrogation for PIP payments made to you.
Contact Gilbert Adams Law Offices for Help After a Car Crash in Texas
Understanding the types of auto insurance required in Texas and the additional coverage options available can help you make informed decisions about your policy and know how to proceed after a crash. Ensuring you have adequate coverage is crucial for financial protection and peace of mind while driving. If you or a loved one has been hurt in a crash in Beaumont or anywhere in Texas, call Gilbert Adams Law Offices at 409-835-3000 for a free consultation to discuss your case and find out how we can help.