What Are My Automobile Insurance Options?

Texas Law requires all drivers to carry liability insurance with a minimum policy limit of $25,000 for property damage and $30,000 for personal injury damage.   Liability insurance covers the other driver’s property and personal injury damages if you are at fault.  However, approximately 15% of Texas drivers do not carry any automobile insurance.  Thus, if you are in a motor vehicle collision, you have 1 in 6 chance of the other driver not carrying any automobile insurance.  If the other driver is not insured, it is highly unlikely that you will be able to recover any compensation from the other driver even if he or she is at fault.  For this reason, it is important to consider purchasing more than just liability insurance.

 

Collision

 

Collision insurance covers the cost to repair your car regardless of who is at fault.  Thus, if you are at fault or the other driver is at fault but does not have insurance, the collision policy covers the costs of repair.  If you purchase a vehicle with a loan, you are typically required to carry collision to protect the interest of the bank.

 

Underinsured/Uninsured Motorist

 

UIM insurance covers personal injury damages caused by another driver who does not have automobile insurance or sufficient insurance to cover all the damages.  UIM covers lost wages, medical bills and pain and suffering.  This is an important insurance to purchase, especially if you do not have health insurance.  A few days in a hospital will result in a medical bill that could exceed $100,000. 

 

Personal Injury Protection

 

PIP covers out of pocket medical expenses and lost wages.  This policy covers lost wages and out of pocket medical expenses regardless of who is at fault.  The amount of coverage is usually between $2,500 to $10,000.  This insurance does not cover pain and suffering or medical bills that are covered by health insurance. 

 

If you have been injured in a motor vehicle collision, contact the O’Hara Law Firm to learn about your rights regarding compensation.  

Posted in Car Accidents

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