How Texas’ Car Insurance System Works

Understanding how the Texas car insurance system operates is essential knowledge for every driver. Whether you’re cruising down the highways of Dallas or navigating the streets of Denton, being aware of the intricacies of car insurance in Texas can significantly impact how you handle accidents and claims.

At Chandler Ross Injury Attorneys, we specialize in assisting individuals who have been injured in car accidents. As seasoned Personal Injury Lawyers serving Denton, TX, and the broader Dallas-Fort Worth (DFW) area, we recognize the importance of providing comprehensive information to our clients. In this blog, we’ll delve into the workings of the Texas car insurance system, shedding light on its key components and how they can affect you in the event of an accident.

1. Minimum Liability Coverage: Texas law mandates that drivers carry minimum liability insurance coverage. As of [current year], these minimums are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This coverage is often abbreviated as 30/60/25.
2. Fault System: Texas follows a fault-based system when it comes to car accidents. This means that the person responsible for causing the accident is also responsible for covering the resulting damages. Understanding fault is crucial when determining whose insurance will pay for the damages.
3. Optional Coverages: While liability insurance is the only coverage required by law, Texas drivers have the option to purchase additional types of coverage for added protection. These may include:
   • Collision Coverage: Pays for damage to your vehicle resulting from a collision with another vehicle or object.
   • Comprehensive Coverage: Covers damage to your vehicle from incidents other than collisions, such as theft, vandalism, or natural disasters.
   • Uninsured/Underinsured Motorist Coverage: Protects you if you’re involved in an accident with a driver who has insufficient insurance coverage or no insurance at all.
   • Personal Injury Protection (PIP): Provides coverage for medical expenses and lost wages for you and your passengers, regardless of who is at fault.
4. Comparative Negligence Rule: Texas follows a modified comparative negligence rule, which means that if you’re found partially at fault for an accident, your compensation may be reduced by the percentage of your fault. However, if you’re deemed more than 50% responsible for the accident, you may not be eligible for any compensation.
5. Statute of Limitations: In Texas, there’s a statute of limitations for filing personal injury lawsuits related to car accidents. Generally, you have two years from the date of the accident to file a lawsuit. Failing to file within this timeframe could result in losing your right to seek compensation.
6. No-Fault Insurance: Unlike some states, Texas does not have a no-fault insurance system. In no-fault states, drivers turn to their own insurance coverage regardless of who is at fault. In Texas, however, fault is a critical factor in determining which insurance company is responsible for covering the damages.
7. Handling Insurance Claims: Dealing with insurance companies after a car accident can be challenging. It’s important to remember that insurance companies are businesses motivated by profit, and their goal is to settle claims for as little as possible. Having an experienced personal injury attorney on your side can help level the playing field and ensure you receive fair compensation for your injuries and damages.

In conclusion, navigating the Texas car insurance system requires a good understanding of state laws and insurance policies. As leading Injury Attorneys in Denton, TX, and serving clients throughout the Dallas-Fort Worth area, we’re here to provide expert guidance and legal representation when you need it most. If you’ve been injured in a car accident, don’t hesitate to reach out to us for a consultation. Your rights and well-being are our top priorities.