Hindsight is 20/20. As a personal injury law firm, you can imagine that many people ask what kind of car insurance they should carry. Sadly, many people only begin to question the type of insurance, if their insurance company has quality customer service and the injured party’s best interest, and if they (the “insured”) has enough insurance coverage if they are involved in a wreck until after they or a loved one have been injured in car crash.
Well, at this point you may be asking yourself, “what does my insurance premium really include?” You may be thinking that you have “full coverage” and so you are completely covered for all of your losses and that you can get back to work and on the road without any hassle. Many times, that is not the case. Many times, injured people have to fight to get the at-fault driver’s insurance to pay the damages. Even more aggravating, many times the injured party not at fault has to fight their own insurance to cover their damages or excess damages not covered by the 3rd party insurance.
Here is a list of various insurance coverages you available:
- Liability Insurance. The coverage that is likely required by the State. This will cover claims filed against you when you are at fault. Texas limits are 30/60 for “bodily injury” and $25k for property damage. Which means that it will pay $30,000.00 for one person and up to $60,000.00 for other passengers. Higher limits are available; however, they will only be paid to people involved in an accident in which you are at fault.
- Personal Injury Protection (PIP). The limits available are $2,500.00, $5,000.00 and $10,000.00. This coverage is for protection to you and anyone who is with you at the time of the accident. This coverage can be used for your medical bills and up to 80% of your lost wages. It does not matter if you are at fault or not;
- Uninsured/Underinsured Coverage (UM/UIM). This coverage is to protect you if you are hit by a person who is not insured or if the person who hits you has a minimal insurance policy and your injuries and damages are higher than their policy limit. This coverage is for you and your passengers who are injured. In order to file a claim against Uninsured Motorist Coverage, you cannot be at fault. The Texas limits start at 30/60 and can be as high as you want to insure yourself and your passengers. Be sure to ask your insurance person to verify and explain all of your types of coverage;
- Full Coverage. This coverage will only contain Liability (for the people in the other vehicle), comprehension and collision. This coverage is required by your lienholder as it will only assure that your vehicle is repaired. This coverage will not pay for any medical bills incurred if you or your passengers are injured.
- Medical Payments (Med Pay). This coverage is also for you and your passengers, however, if you are able to recover from the at-fault party, you must reimburse the insurance carrier for any money paid. Many people prefer Personal Injury Protection over this coverage.
- Towing and Labor Coverage. This type of coverage pays to tow your car if it can’t be driven after you are involved in a car crash. It also pays for labor to change a flat tire or jump-start your battery.
- Rental Reimbursement Coverage. This coverage pays for you to rent a car if your car is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services.
VERY IMPORTANT: The types of insurance coverage and definitions provided on this page are only examples of types of insurance coverage that are available and may be made available to you by your insurance provider – the list is not exhaustive. Your insurance is a contract that you should read thoroughly. Your insurance contract should dictate what your coverage includes. If you do not understand something, then make sure to ask your insurance agent to explain it to you. This blog is written only for your information purposes, not advise.
If you or a loved one have been injured in a car crash and have questions regarding your next steps in filing a claim with an insurance company call 210-996-2237 and set up your free consultation with a personal injury lawyer today.