Understanding Insurance for Car Wrecks

As of 2010 in Texas, the minimum insurance policy limits are $25,000.00 for each bodily injury and $50,000 for bodily injury if there is more than one person injured.  In other words, if ten people have been injured, the minimal policy limits would be $50,000.00 to compensate all ten injured persons.  The minimum insurance policy limits for property damage (i.e., vehicle damage) are $25,000.00.  The limits will increase on January 1, 2011, to $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident.

Texas also requires that consumers be offered uninsured motorist coverage and underinsured motorist coverage and personal injury protection (PIP).  This type of insurance provides additional insurance in the event that the at-fault party does not have adequate insurance to pay for the damages caused to the other party.  If the consumer does not wish to have this type of coverage, consumers must waive uninsured/underinsured coverage and personal injury protection in writing with their insurance company.  Typically, personal injury protection (PIP) is at least for $2,500.00 and underinsured/uninsured motorist coverage is at least $25,000.00.  PIP coverage will pay for medical bills and up to 80% of your lost wages. 

Due to recent Texas Supreme Court decisions, you may lose your rights to uninsured/underinsured benefits if you “settle” against the at-fault insurance policy.  The typical defense asserted by underinsured/uninsured carriers is that there is no judicial finding that the at-fault party was underinsured.  That is, they will refuse to pay the claim on the defense that the acceptance of the minimal policy limits from the at-fault party fully compensated the injured party.  This defense will be made even when the carrier gives you permission to settle with the at-fault party.  In other words, it is a trap with the purpose of denying an insurance claim for uninsured/underinsured benefits.  Before you accept any settlement, you may want to talk with an attorney about your case. 

There are no attorney fees if there is no recovery.  If you have been hurt in a car wreck anywhere in Texas, contact our Texas Car Wreck Lawyers now for a free and confidential consultation at 1-877-TX-CAR-WRECK (1-877-892-2797) or email by clicking here.