In Texas, you must have mandatory insurance coverage to protect you in the case of an accident. This insurance protects you financially if you are at fault in an accident. Texas, a tort (fault) state, requires the person who caused the accident to pay for the other party’s damages. These might include medical bills, lost wages, and pain and suffering if there is a lawsuit.
If you have been involved in an accident the team of skilled car accident lawyers can help you navigate your legal options and ensure you receive the compensation you deserve.
What Mandatory Insurance is Required?
Liability insurance is required of all drivers in the state of Texas. This insurance will aid you in your responsibility to pay for the repairs if there was property damage or the medical bills if there were injuries sustained. You are responsible if you cause an accident.
Liability Insurance Required in Texas
The mandatory insurance in the Lone Star State requires $30,000 of liability insurance for all injured persons in the vehicle, up to $60,000 total per accident, and property damage insurance must total $25,000, according to the Texas Department of Insurance.
The liability insurance limits in Texas are “30/60/25” as referred to by legal and insurance professionals. The numbers refer to:
- $30,000 in bodily injury coverage (per person)
- $60,000 in bodily injury coverage (per accident)
- $25,000 in property damage coverage (per accident)
- $2,500 for Personal Injury Protection (PIP - can be waived)
Personal Injury Protection is a type of insurance that will take care of the first $2,500 of medical bills or lost earnings no matter who is at fault. Although this insurance must be offered to drivers in Texas, you can decline it or purchase a higher PIP protection depending on your needs.
Remember the numbers 30/60/25. This is the basic coverage required per state law. This is considered liability insurance. These numbers, when considering a car accident that caused major injuries and a totaled vehicle, don’t amount to as much as you may initially consider.
Accidents can leave lasting effects in the form of continued medical care over $100,000 in bills, or over $35,000 at the body shop. Other insurance can protect you if you want more than the minimum required.
Other Types of Insurance Available in Texas
Start with Liability Insurance
As discussed above, the coverage is a minimum of 30/60/25 and mandatory in the state. This insurance is used when an at-fault driver needs to cover the costs of the other people involved in the accident. These costs may include medical bills, property damage (the vehicle), lost wages, and other damages that accrued due to the accident.
Personal Injury Protection (PIP)
While liability coverage is focused on paying the costs of other people involved in an accident that you caused, personal injury protection (PIP) coverage pays for your medical bills, any lost wages, and other costs related to the accident. Auto policies in Texas include this by default, but it can be waived.
Collision Insurance
Collision insurance, while not required, can protect those in the vehicle with you, yourself, and your property in the case of an accident that was your fault or the other driver’s insurance may not cover all damages. Collision coverage provides more substantial medical expenses and property damage coverage than liability insurance.
When you have an accident with another driver, this insurance pays for the damage to your car. Auto lenders often require this insurance as it covers any damages to your car. If the damages to your vehicle sustained were greater than the cost of the car, the collision policy pays out the car’s actual value of a lesser amount listed on your policy.
This is why you must check with your insurance provider about insurance payout versus your vehicle’s worth. What you paid for the vehicle and what your vehicle is worth are often two different ideas in terms of the insurance company. Research the value of your vehicle by comparative vehicle searches online such as Kelley Blue Book and have your vehicle appraised.
Consider a hospital visit overnight, in the case of an accident, often costs more than $10,000. Add a few days onto that first night, and the costs increase. Consider the coverage you want access to in case the unthinkable happens.
Comprehensive
Comprehensive coverage will cover any damages to your vehicle such as fire damage, vandalism, theft, or flood damage. Comprehensive covers your and your passengers' medical bills. It also pays if you're hurt while riding in someone else's car or while walking or biking.
Uninsured/Underinsured (UM/UIM)
Unfortunately, some drivers ignore mandatory requirements for insurance coverage in Texas, and when this happens, uninsured motorist or underinsured motorist insurance plans protect against the costs of property damages and bodily injury damages.
Loan/Lease Payoff or Gap Coverage
This coverage covers between what’s owed on the loan or lease of the vehicle and the car’s determined value. If your vehicle could depreciate significantly, consider gap coverage.
Medical Payment
Medical payment coverage can be purchased and used to pay for medical bills related to the accident, no matter who was at fault.
Rental Car
If your vehicle has been damaged, many people add rental car coverage to their plan so transportation isn’t affected after an accident.
Roadside Assistance
Use this coverage if your vehicle breaks down on the side of the road. Roadside assistance repairs and towing are included.
You need a lawyer who understands the types of insurance, the options offered, the financial benefits in the event of an accident, and the options available for recovering compensation.
What to Know When You Review Your Policy or Purchase a New Policy
The Texas Department of Insurance states:
- If you cause an accident, you’re responsible.
- Liability insurance is required. Remember the numbers 30/60/25.
- Determine if you need more insurance based on your situation and understand the types of insurance available to you.
- Call insurance providers specializing in car insurance and receive multiple quotes on insurance.
- Insurance providers will base your quote on your driving record and previous claims you’ve submitted. The insurance premiums can rise if you’ve gotten a recent ticket or been in an accident. The location of your vehicle and the kind of car you have can affect premiums. For example, collision and comprehensive rates are higher for luxury, high-performance, sports cars, and cars that are costly to repair. If you use your vehicle for work or business will affect your insurance and how many miles you put on it yearly could be asked. Some insurance companies pull credit scores to determine insurance premiums. This is why it is important to get multiple quotes.
- Compare all the quotes you received and determine the best quote for you. Read the insurance company reviews, and use critical judgment to determine their credibility based on information provided after further research.
- Ask about discounts. Many insurance providers offer discounts. Keywords for discounts include good student discounts, safe driver discounts, policy discounts, multi-car discounts, homeowner discounts, new car discounts, low mileage discounts, loyalty discounts, and paid-in-full discounts.
- Avoid coverage gaps to ensure you are covered all the time.
- Access helpinsure.com for more information.
What Happens if You Don’t Have Mandatory Insurance?
If you don’t have mandatory insurance, can you get into trouble? Yes. If you don’t have proof of insurance when a law enforcement officer pulls you over you you could face significant penalties, including:
- A possible fine of $350 for the first offense
- Vehicle impounded
- Registration is suspended
When is Proof of Insurance Required?
Proof of Insurance, or proof of an insurance policy, usually contains the vehicle and names of policyholders, a policy number, and the policy’s expiration date. If you don’t have proof of insurance from your insurance provider, you may not be able to obtain a driver’s license, register a car, renew a vehicle registration, or complete an annual vehicle inspection (inspection requirements will change in 2025).
How Can a Car Accident Lawyer Help You?
Personal injury or car accident lawyers work with insurance companies to negotiate a settlement for your case. A car accident attorney aids clients in many ways toward a desired outcome for financial compensation while managing the caseload for clients. This helps clients in recovery after an accident.
All accidents take a toll in one way or another, and whether a serious new medical concern or sorting out the mess that was once your vehicle is on your to-do list, a lawyer can handle the insurance claim and get the compensation you deserve.
By speaking with a car accident lawyer, you will understand your options and can put a plan in place if insurance won’t cover the damages or if the insurance company may not seem to be cooperating in the ways you had hoped.
A car accident lawyer can augment your recovery after an accident. These are the ways they assist clients:
- Oversee the claims process: A car accident lawyer works with insurance providers to ensure the claims process progresses appropriately.
- Review your policies: An attorney will help you understand the complexities of your insurance policy, and more specifically, the details of all coverage. A car accident attorney can determine how each policy applies to your claim/case.
- Determine the value of your claim: Based on the evidence provided, a car accident lawyer can assess the value of your claim.
- Negotiate a fair settlement: A car accident attorney can negotiate a fair settlement with your insurance company. A lawyer will argue the validity of your claims based on their evaluation of your case and advocate for a fair settlement. A car accident attorney can maximize the compensation an insurance company will pay.
- Research other compensation options: A car accident attorney can discover other potential sources of compensation that may come from personal assets or other policies of the at-fault driver. This can help to maximize your recovered compensation.
- Litigation, or the formal process of settling disputes in court, is often the last option. If you cannot agree on a fair settlement with the insurance company, you can file a lawsuit in which your attorney represents you in civil court.
Many law firms offer free consultations. Take advantage of speaking with firms that offer these free case reviews, but don’t wait too long to move forward toward compensation. Texas law requires injury claims to be filed less than two years from the date of injury.
Personal Injury Statute of Limitations in Texas
If you delay filing your insurance claim, you risk losing your right to compensation. Insurance companies and the legal systems have deadlines for claims and lawsuits.
The statute of limitations for personal injury lawsuits in Texas is detailed under Tex. Civ. Pract. & Proc. Code § 16.003 (2024). You have two years from the date of injury to file your case in court.
Contact Our Lawyers Texas Lawyers Today
The car accident lawyers at The Francis Firm have over 30 years of experience representing clients in cases of car accidents and insurance battles.
Because Texas is a tort (fault) state, the person who caused the accident usually pays for the other party’s damages. These might include medical bills, lost wages, and pain and suffering if there is a lawsuit. Your personal injury attorney can help you file a claim with their insurance. You will be entitled to compensation up to the policy limits.
Although many drivers in Texas carry the state minimums, some drivers don’t carry the liability limits. This is why carrying more insurance will protect you and others. It’s wise to carry more insurance than liability insurance as additional insurance policies will protect you and others by providing different coverage options.
Regardless of who is at fault, if drivers do not have enough auto insurance coverage, severe injuries and property damage can add up and can cause severe physical and financial burdens.
The Francis Firm Personal Injury Attorneys
Whether you have been in a car, truck, or motorcycle accident, talk to a personal injury attorney. Accidents often leave financial burdens and physical reminders. You could be entitled to compensation for your losses.
Contact a lawyer and get help starting the claims process immediately by contacting The Francis Firm for your free consultation.
You have a right to be represented by a Texas personal injury attorney when you file a claim. An attorney will review the case and determine if you would benefit from legal representation. It’s as simple as contacting The Francis Firm at (817) 533-8773.