When driving in Texas, having auto insurance is a fundamental necessity. This is the law and it is for the safety of the driver, passengers and others on the road. When paying the insurance company premiums, there is an understandable expectation that if there is an accident, the damages will be paid for. That includes injuries, fatalities, property damage and more. However, insurers might try various tactics to try and avoid paying what they are supposed to. Whether that it based on fine print in the policy or by asserting that the person’s injuries or property damage does not warrant what they are expecting to receive in compensation, it is important that policyholders understand their rights and do not allow the insurance company to shirk its legal responsibilities.
What the auto insurance policy generally covers
In general, there are eight areas that auto insurance will cover. Liability insurance is to pay for the damages to the other individual’s vehicle if the policyholder caused the crash. This is essential as it prevents a person from facing the possibility of being sued as an individual and losing property they own to cover the payments for the other driver’s damage. Texas has a 30/60/25 requirement meaning that the coverage will pay $30,000 per person for injuries and as much as $60,000 for every accident. The 25 stands for $25,000 in property damage.
Having collision protection will pay for the replacement or repair of the policyholder’s vehicle. There is also comprehensive coverage that will cover for a fire, vandalism and other damage that comes about due to reasons other than a crash. Medical payments are for the policyholder’s medical care and any care needed by passengers. PIP or personal injury protection will pay for medical expenses, lost income and expenses that go beyond medical treatment. Despite the law saying that people are required to have insurance, some get behind the wheel without it. This is when it is imperative to have coverage for uninsured or underinsured motorists. Towing and repair work can be covered. Finally, there is rental reimbursement that will pay if a person needs to rent a vehicle after theirs has been rendered unavailable.
One case exemplifies how insurers might try to keep from paying
Even if a driver has auto insurance, circumstances can arise that lead to disputes about whether damage will be paid for and by whom. One recent case shows how this can happen. A Texas woman had brought her 2020 Ford Escape to the dealership for its initial service. Unfortunately, when she arrived to retrieve the vehicle, she discovered it had been in a crash and was totaled. The dealer stated that a mechanic had driven the car out of the facility and there was an accident. They claimed that the other driver was at fault. The police report seemed to verify that the other driver had not yielded and sparked the collision.
