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How Texas’ Car Insurance System Works

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.

With offices in Denton, Keller, Euless and Southlake, Texas, Chandler | Ross, PLLC and our Personal Injury Attorneys are well positioned to provide the most effective and highly-skilled representation possible.  We are a local law firm, focused on providing each and every client with the best representation possible.   If we take your case, it’s for a reason, and we’re going to prove that to you.  Don’t wait, and don’t compromise.  Contact us today for a Free Case Evaluation.  In most cases, you pay nothing unless you recover.  Contact us now.  (940) 800-2500


While Chandler | Ross makes every effort to ensure information disseminated throughout this website is correct and up to date, we cannot and do not guarantee that informational blogs and articles within the siteare accurate, up-to-date, and/or applicable to any specific situation.  Nothing herein is intended to create, and nor does it create an attorney-client relationship of any kind.  The information contained within this site is for general use and educational purposes only, and should not be relied upon as legal advice of any kind.  No action should be taken in reliance of this information without first contacting an attorney who is licensed to practice in your jurisdiction.

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