How Does Auto Insurance Work in Texas?

In the state of Texas when drivers are involved in an auto collision, they are required to pay for any damages that they cause.  The most common way to do this is by purchasing an auto insurance policy that covers financial expenses that happen as the result of an accident.  

Auto insurance is common in all states but it works a little differently depending on where you live.  There are some special circumstances related to insurance in the state of Texas.

What is Auto Insurance?

Most states require insurance on a vehicle if you drive it on public roads.  Auto insurance is basically a contract between you and an auto insurance company.  If you happen to get into a car accident with another driver or if you just damage property like homes or buildings, insurance companies will pick up a large part of the cost of repairing things.  

They also cover the cost of medical expenses related to the accident for both the insured driver and anyone else involved in the accident.  Typically these policies have limits on the amount of money they will pay out in the event of each accident.

The person who pays for the policy pays a monthly payment called an insurance premium.  As long as they stay up to date on their payments, they are covered in the event of an accident.  

How Does Auto Insurance Work in Texas?

In Texas, residents must buy enough insurance to meet the state’s financial responsibility law.  This is about 30 thousand to cover each injured person and 25 thousand to pay for property damage.  

These coverages help pay for a variety of expenses related to accidents like towing costs, repairs to the drives’ vehicles, coverage for uninsured or underinsured motorists, medical attention or emergency services that may be needed at the scene of an accident as well as costs related to property damage.  

In Texas, there is also something called personal injury protection coverage.  This helps people who have been injured in a car accident and are unable to work due to their injuries.  It covers things like having to miss work and not being able to pay your bills. It also covers things like hiring a caregiver to help you around your home should you become incapacitated.  

Filing a Claim in Texas

In Texas, it’s common for the other driver’s insurance company to try and get you to sign documentation to settle a claim.  This usually happens if you were not at fault in the accident and the other driver’s insurance company is handling the situation.  It’s important that you do not sign anything before speaking with an attorney. You can get car accident claim help from the Colley Firm, PC.  If you’ve been in an auto accident, they are the first people you should contact after the police and emergency services.  They can help walk you through the process of filing a claim and understanding your rights when it comes to the insurance system in Texas.  

 

Sources

http://www.tdi.texas.gov/pubs/consumer/cb020.html

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