Texas Automobile Insurance

January is a good month to review and adjust automobile insurance policies.  Many drivers don’t understand the types of insurance available to cover car accidents.  Moreover, rarely do drivers think about their automobile insurance until after a car accident occurs.  However, making prudent decisions about automobile insurance prior to a car accident will alleviate a lot of stress and frustration in the event of a car accident.

The most basic automobile insurance in Texas is known as minimal limits liability insurance.  In 2008, Texas raised the minimal limits for liability insurance from $20,000 to $25,000.  Therefore, a minimal automobile insurance policy in Texas provides $25,000 in liability coverage per person, up to $50,000 maximum per car accident (25000/50000).  If a driver is at fault for a car accident in Texas and has minimal liability insurance, there may be insufficient insurance coverage available for the at-fault driver, especially in the event of a significant car accident causing severe damage and/or involving numerous claimants.  Without adequate coverage, Texas drivers may be exposing their assets to potential liability. If you have a minimal limits liability insurance policy, you should contact your insurance agent to find out how much it would cost to increase your limits.  Most people are pleasantly surprised at how little the additional coverage costs.

Texas drivers have the option of adding Personal Injury Protection (PIP) to their automobile insurance policies.  In the event of a car accident, PIP provides protection to an insured by covering up to 100% of incurred medical bills, and up to 80% of lost wages.  Depending on the insurance company, PIP coverage is generally available in amounts between $2,500 to $10,000.  PIP coverage is a great way for an insured to protect against short-term financial losses immediatley following a car accident.  Again, you should contact your insurance agent to discuss this type of coverage.  As with increasing liability limits, the additional premium PIP coverage is generally nominal.

Another option for Texas insureds is underinsured/uninsured motorist coverage (UM/UIM).  UM/UIM coverage applies when an insured is involved in a car accident with another, at-fault driver.  If the other at-fault driver has no insurance, or has insufficient insurance, the insured can file a claim for UM/UIM insurance benefits under his or her automobile insurance policy.  We highly recommend to all of our cleints that they add UM/UIM benefits to their automobile insurance policies.  Insurance premiums are only slightly increased after adding this type of coverage.  If you do not already have UM/UIM coverage, I stongly recommend you contact your insurance agent and add it to your policy.

Another consideration for Texas drivers is umbrella coverage.  Umbrella coverage applies when all available policies of insurance have been exhausted.  For example, if a Texas driver maintains liability insurance limits of $100,000, and is involved in a serious car accident, perhaps a fatality accident, and is determined to be at fault, the $100,000 policy limits will likely be insufficient to cover all damages.  Once the $100,000 in benefits have been paid, the umbrella policy would apply, up to the umbrella policy limits.  Adding $1,000,000 of umbrella insurance coverage generally costs around $300 to $400 per year.  This is a fairly small price to pay for a significant amount of insurance.

Automobile insurance is not only to protect the insured, it also protects those who the insured may unintentionally harm.

If you or a loved one have been injured in a car accident, Contact Schorr Law Firm toll free at 1-866-456-0100 or Visit Schorr Law’s Website

Posted in Automobile Accident, Insurance
Tags: Accident Insurance, Policy Limits