Protect yourself in a car accident with the right insurance.

Having the right auto insurance is crucial to staying legal in Texas and protecting yourself if you’re in a car accident. Here’s a simple guide to the eight basic types of auto insurance coverage:

1. Liability Coverage: This is required by Texas law and covers damages to the other driver’s car if you cause an accident. The minimum coverage is $30,000 for injuries per person, up to $60,000 per accident, and $25,000 for property damage. This is often called “30/60/25 coverage.” It’s wise to consider higher limits because accidents can easily exceed these amounts, and you could be sued for the difference.
   
   
2. Collision Coverage: This covers the cost to repair or replace your car if you’re in an accident, regardless of who is at fault.
   
   
3. Comprehensive Coverage: This pays for damage to your car from non-collision events like fire, flood, theft, or vandalism.
   
   
4. Medical Payments Coverage: This covers medical bills for you and your passengers, whether you’re in your car, someone else’s car, or even if you’re a pedestrian or cyclist.
   
   
5. Personal Injury Protection (PIP) Coverage: PIP is similar to medical payments coverage but also covers lost wages and other non-medical costs. It’s automatically included in all Texas policies unless you reject it in writing. It’s a good idea to keep this coverage.
   
   
6. Uninsured/Underinsured Motorist Coverage: This protects you if you’re hit by someone without insurance or without enough insurance. It also covers hit-and-run accidents. Like PIP, it’s included unless you reject it in writing.
   
   
7. Towing and Labor Coverage: This pays for towing your car and other roadside assistance, like changing a flat tire or jump-starting your battery.
   
   
8. Rental Reimbursement Coverage: If your car is stolen or in the shop after an accident, this covers the cost of a rental car or alternative transportation like taxis or ride-hailing services.
   
   
   

In Texas, first and third-party coverages can work together to provide comprehensive protection if you’re injured in an accident. First-party coverages, like Personal Injury Protection (PIP) and Medical Payments Coverage, are designed to cover your medical expenses, lost wages, and other related costs, regardless of who is at fault. On the other hand, third-party coverages, such as Liability Insurance, protect you if you’re found responsible for an accident, covering the other party’s damages and medical bills. If the other driver is at fault, their liability coverage would compensate you for your injuries and damages. By having both types of coverage, you can ensure that you’re protected from various financial burdens after an accident, whether you’re at fault or not. This layered approach to coverage offers peace of mind and can significantly reduce out-of-pocket expenses during a challenging time.

Understanding the layered approach to coverage, however, is crucial.  For example, in Texas, it’s important to understand the role of subrogation when it comes to PIP versus Medical Payments (MedPay) coverage. PIP coverage does not require reimbursement (subrogation) if you receive a settlement from the at-fault party’s insurance, meaning you keep the full amount of any recovery. MedPay, however, often involves subrogation, where your insurer may seek repayment from the at-fault party’s insurance for the medical expenses they covered. This makes PIP coverage generally more advantageous, as it allows you to avoid paying back your insurer after a settlement.

If you’ve been injured in a car accident, the attorneys at LeMaster Law Firm are here to help you navigate insurance issues you will surely encounter.  Contact us at our Houston office at 832-356-7983 or you can also send us a message directly through our website.