Car Insurance and Financial Responsibility in Texas

In Texas, all drivers are required to have auto insurance. This is known as the state’s “financial responsibility” law, and it applies regardless of the type of vehicle you drive, how frequently you drive, and your driving record.

Minimum Auto Insurance Requirements in Texas

Texas’s financial responsibility law establishes minimum insurance requirements for liability in the event of an accident. At a minimum, drivers are supposed to have coverage of: (i) $30,000 for each injured person, (ii) total injury coverage of $60,000 per accident, and (iii) $25,000 for property damage. However, as summarized by the Texas Department of Insurance, this often will not be enough to cover the full cost of accident victims’ injuries and losses:

“Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re at fault in an accident. Other drivers could sue you to collect the difference. Consider buying more than the minimum limits to protect yourself financially.”

Additionally, Texas has one of the highest rates of uninsured drivers in the nation. According to the latest data, an estimated 1.6 million drivers in the state are uninsured. Due to the high number of uninsured drivers and the high risk that a driver will be “underinsured” (carrying only the minimum coverage required under Texas’s financial responsibility law), it is important for responsible drivers to consider purchasing enhanced protection for themselves and their loved ones.

Insurance Coverage Exclusions that May Apply in the Event of an Accident

Even if a driver has auto insurance, there are certain circumstances in which his or her coverage may not apply. For example, three common auto insurance “exclusions” include:

• Excluded Drivers – An auto insurance policy may cover certain household members, but not others.
• Racing – Street racing is considered an intentional dangerous act, and most insurance companies will seek to deny coverage if it appears that their policyholder was racing.
• Uber and Lyft – Uber and Lyft drivers typically must purchase separate coverage for the time they spend providing ride-sharing services.

As with all issues involving the insurance companies after a collision, dealing with an insurance company’s attempt to deny coverage based on an exclusion is a task best left to an experienced San Antonio auto accident attorney.

Non-Mandatory Auto Insurance Options in Texas

To help protect yourself against the costs of an auto accident, you can purchase a variety of types of optional insurance coverage. Under the standardized Texas Personal Automobile Policy, the types of optional coverage that are available include:

• Enhanced Liability Coverage – Liability coverage above the minimum requirements discussed above.
• Collision Coverage – To cover the damage to your vehicle.
• Medical Payments Coverage – To cover accident-related medical and funeral expenses.
• Personal Injury Protection (PIP) Coverage – To cover medical bills, funeral expenses, and 80 percent of your lost wages.
• Uninsured/Underinsured Motorist (UIM) Coverage – To cover your losses in the event of an accident caused by an uninsured or underinsured driver.

Questions? Speak to a San Antonio Auto Accident Attorney Today

If you have questions about your insurance coverage or another driver’s insurance coverage for accident-related injuries, you can contact Law Offices of Ronald A. Ramos for a free consultation. To speak with San Antonio car accident attorney Ronald A. Ramos in confidence, please call (210) 308-8811 or tell us how we can help online now.

Understanding Texas Minimum Insurance Requirements

Texas law requires all drivers to carry minimum liability insurance coverage known as 30/60/25. This means at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident. While these minimums satisfy the legal requirement, they are often insufficient to cover the full cost of a serious accident. Medical bills from a single hospital stay can easily exceed $30,000, leaving the injured party to cover the difference out of pocket.

Types of Auto Insurance Coverage in Texas

Beyond the minimum liability coverage, Texas drivers can purchase several additional types of protection. Collision coverage pays for damage to your vehicle regardless of who caused the accident. Comprehensive coverage protects against non-collision damage such as theft, hail, and vandalism. Personal Injury Protection (PIP) covers medical expenses for you and your passengers regardless of fault. Uninsured and underinsured motorist coverage protects you when the at-fault driver has no insurance or insufficient coverage. Given that an estimated one in five Texas drivers is uninsured, UM/UIM coverage is particularly important for San Antonio drivers.

What to Do When the Insurance Company Denies or Undervalues Your Claim

Insurance companies are businesses focused on minimizing payouts. After a car accident, you may encounter tactics designed to reduce your settlement, including pressuring you to give a recorded statement, requesting unnecessary medical authorizations, disputing the severity of your injuries, or offering a quick lowball settlement before you understand the full extent of your damages. If you believe the insurance company is acting in bad faith, you may have additional legal remedies available under Texas law.

How a San Antonio Car Accident Lawyer Can Help With Insurance Claims

Navigating the insurance claims process after an accident can be overwhelming, especially while recovering from injuries. An experienced attorney can handle all communications with the insurance company, gather evidence to support the full value of your claim, negotiate aggressively for a fair settlement, and file a lawsuit if the insurance company refuses to offer reasonable compensation. At the Law Offices of Ronald A. Ramos, P.C., we handle all car accident and insurance dispute cases on a contingency fee basis. Contact us today for a free consultation.