One of the most important things to understand after a car accident is which insurance system your state uses.
Most states use either a no-fault or fault-based insurance system.
This system dictates the type of coverage you have and whether you can file a claim against the at-fault driver.
What Is No-Fault Insurance?
No-fault insurance is a system in which people involved in a car accident turn to their own insurance to cover their losses, regardless of fault. This type of insurance is often called PIP or personal injury protection coverage. Its purpose is to reduce the number of legal claims, ease the claim process, and provide more affordable insurance options.
About twelve states use no-fault insurance. However, their application differs. In some states, you can choose whether you can sue the at-fault driver at the time you purchase insurance. In other states, you may be able to file a claim against the at-fault driver if you suffer certain types of injuries or incur a certain amount of medical bills.
What Is a Fault-Based Insurance System?
Under a fault-based insurance system, the party found responsible for the accident is responsible for paying for the damages they caused. You file a claim with the at-fault driver’s liability insurance system. Most states use an at-fault insurance system.
Which Insurance System Does Texas Use?
Texas follows an at-fault system for car accidents, meaning the driver deemed responsible for the crash (the “at-fault” driver) is required to compensate the injured parties for their damages. This includes covering medical expenses, lost wages, and property damage.
Additionally, Personal Injury Protection (PIP) coverage is available in Texas, though it is not mandatory. PIP can help cover medical costs and other expenses, regardless of who was at fault in the accident. While not required by law, many drivers choose to carry PIP for added protection in the event of an accident. PIP coverage is discussed further below.
Mandatory Liability Insurance Requirements in Texas
In Texas, all drivers are required to maintain liability coverage to pay for damages they cause others through their negligence. Minimum amounts of liability insurance drivers must carry include:
- $30,000 in bodily injury per person
- $60,000 in bodily injury per accident
- $25,000 in property damage coverage
You can purchase more than the minimum to protect your assets.
Optional Insurance Add-Ons in Texas
While Texas uses an at-fault system for car insurance, you have the option of purchasing additional insurance that can help in case you get in a wreck or sustain other damages. Here are some insurance you can purchase in Texas:
- MedPay: Medical payment coverage, or MedPay, pays for your and your passengers’ medical bills regardless of fault.
- Personal injury protection (PIP) coverage: PIP coverage pays medical bills related to the accident. It also covers lost wages and other nonmedical costs. All Texas auto policies include PIP coverage. You have to reject it in writing for it not to apply.
- Collision coverage: Collision coverage pays to repair or replace your vehicle after an accident, regardless of fault.
- Comprehensive coverage: Comprehensive coverage pays to repair or replace your vehicle after it sustains damages due to factors other than collisions, such as fire, flood, or theft.
- Uninsured/underinsured motorist coverage: Uninsured motorist coverage pays for medical bills and car repairs caused by a driver who has no insurance or if you are involved in a hit-and-run accident. Underinsured motorist coverage pays for damages you sustain that exceed the other driver’s liability insurance coverage up to your policy limits. Insurance companies must offer this insurance when you purchase auto insurance. You must reject it in writing if you don’t want it.
- Rental reimbursement coverage: If you have to use a rental vehicle while your damaged vehicle is being repaired, rental reimbursement coverage repays you a certain amount for these expenses. Some policies pay for rideshare or taxi services.
- Towing and labor coverage: This type of insurance pays the cost to tow an inoperable vehicle or to have someone change a flat tire or jump-start your battery.
An experienced personal injury lawyer can review your auto policy to determine your coverage after an accident.
Deadline to File a Personal Injury Lawsuit
An important law to understand regarding car accidents is the statute of limitations. This law establishes the time limit you have to file a personal injury lawsuit. While most car accident cases can be resolved with an insurance claim, you may have to file a formal complaint if the insurance company denies your claim or refuses to make a fair settlement offer.
In Texas, the statute of limitations for filing a personal injury lawsuit is two years from the date of the accident. If you miss this deadline, you forfeit the right to recover compensation or justice through the civil court system.
Contact a Knowledgeable Accident Lawyer Today
If you were injured in a car accident and need to know what insurance coverage applies or what your legal options are, a car accident lawyer can help. We can review your auto insurance policy and pursue maximum compensation against the at-fault driver. To determine your next move, it’s best to talk with a Fort Worth personal injury lawyer at Anderson Injury Lawyers. Contact us online or call (817) 612-9938 for a free consultation.