Trust Adley Law Firm to Protect Your Rights After a Houston Car Accident
Contact us today for a free consultation and clear guidance on your insurance claims and coverage options.
Car accidents can leave victims with not only physical injuries but also a maze of insurance challenges. From understanding your policy to filing claims and negotiating settlements, the insurance process can be overwhelming. Whether it’s navigating liability coverage, dealing with repair costs, or addressing medical bills, knowing your rights and responsibilities is crucial. At Adley Law Firm, we’re here to provide a detailed guide to help Houston drivers understand their insurance options and avoid pitfalls after an accident.
What Is Auto Insurance, and Why Do You Need It?
Auto insurance is a contract between you and an insurance company that provides financial protection in the event of an accident. Depending on the type of coverage you purchase, it can cover vehicle repairs, medical bills, and damages to other parties. In Texas, auto insurance is not just a safety net—it’s a legal requirement.
Is Auto Insurance Required in Texas?
Yes, Texas law mandates that drivers demonstrate financial responsibility for any accidents they cause. Most drivers meet this requirement by purchasing auto liability insurance. At a minimum, Texas requires:
- $30,000 for injuries per person.
- $60,000 total for injuries per accident.
- $25,000 for property damage.
This is referred to as 30/60/25 coverage. While meeting these minimum requirements is mandatory, these limits may not fully protect you in a severe accident. Purchasing additional coverage can help safeguard your finances in the long term.
Types of Auto Insurance Coverage
Auto insurance policies offer various types of coverage. Knowing what’s included in your policy is essential for understanding what expenses will be covered after an accident.
Required Coverage
- Liability Insurance: Covers damages and injuries to the other party when you are at fault.
Optional Coverages
- Collision Coverage: Pays for repairs or replacement of your car after an accident, regardless of fault.
- Comprehensive Coverage: Covers non-collision-related damages, such as theft, vandalism, or natural disasters.
- Personal Injury Protection (PIP): Covers medical expenses, lost wages, and nonmedical costs for you and your passengers, regardless of fault. All Texas policies include PIP unless you reject it in writing.
- Uninsured/Underinsured Motorist (UM/UIM) Coverage: Pays for damages if the at-fault driver doesn’t have insurance or sufficient coverage.
- Medical Payments Coverage: Similar to PIP but does not cover lost wages or nonmedical expenses.
- Rental Reimbursement Coverage: Pays for a rental car while your vehicle is being repaired after a covered accident.
- Towing and Labor Coverage: Covers towing and emergency roadside services.
Who Is Covered Under My Policy?
Your auto insurance policy typically provides coverage for:
- You, as the policyholder: This includes when you are driving your vehicle or are involved in certain covered scenarios.
- Family members living in your household: Coverage often extends to spouses, children, or other relatives who live with you and may use your vehicle.
- Anyone driving your car with your permission: If you allow a friend or relative to borrow your car, they are generally covered under your policy, provided they are not specifically excluded.
It’s crucial to carefully review your policy or consult with your insurance agent to fully understand who is covered. Policies may have exclusions, such as for business-related use, rideshare driving, or specific drivers named as excluded. These nuances can significantly impact your coverage in the event of an accident.
Steps to Take After a Car Accident
Taking the right steps after a car accident can protect your rights and make the insurance claims process smoother:
- Exchange Information: Collect the other driver’s contact details, insurance information, and license plate number.
- Document the Scene: Take photos of the vehicles, damages, and accident location.
- Contact the Police: File a report, especially if there are injuries or significant damage.
- Seek Medical Attention: Even minor injuries can have delayed symptoms.
- Notify Your Insurance Company: Report the accident as soon as possible.
- Keep Records: Save all receipts, medical bills, repair estimates, and communications with your insurer.
Common Questions About Auto Insurance in Texas
What Happens If I Borrow or Rent a Car?
If you borrow a car and cause an accident, the owner’s insurance policy typically acts as the primary coverage, meaning it will pay for damages first. If the damages or injuries exceed the owner’s policy limits, your insurance may cover the remaining costs if you have sufficient coverage.
For rental cars, your personal auto insurance often extends coverage for liability, collision, and comprehensive claims. However, rental companies frequently offer additional protection, such as liability policies and damage waivers. These may cover expenses like loss-of-use fees, which are not always included in standard auto policies. It’s essential to review your policy or check with your insurance agent before renting a car to avoid unexpected out-of-pocket costs.
Additional Questions
- Does my insurance cover lost use fees charged by the rental company?
Many personal policies do not cover these fees, so additional coverage from the rental company might be necessary. - What happens if someone else drives the rental car?
If someone not listed on the rental agreement drives the car, coverage from both the rental company and your personal policy may be voided.
Am I Covered When Driving in Another State or Country?
Most Texas auto policies provide coverage in all U.S. states and Canada, ensuring that your liability, collision, and comprehensive coverage follow you across state lines. However, U.S. auto insurance policies are not recognized in Mexico.
If you plan to drive into Mexico, you must purchase a separate Mexican liability insurance policy, as required by Mexican law. Some Texas insurance agents sell these policies or can direct you to an authorized provider.
Additional Questions
- Does my policy have limitations for extended stays out of state?
Most policies provide coverage for temporary trips, but if you relocate or stay long-term, you may need to update your policy to meet local requirements. - Can I use a rental car in Canada or Mexico under my current coverage?
Coverage generally extends to rental cars in Canada, but not in Mexico. Verify your policy before traveling internationally.
What If the Other Driver Doesn’t Have Insurance?
If you’re hit by an uninsured or underinsured driver, Uninsured/Underinsured Motorist (UM/UIM) coverage can pay for damages to your vehicle and medical expenses for injuries caused by the at-fault driver. UM/UIM coverage also applies in hit-and-run accidents, as long as the incident is reported to the police.
UM/UIM is optional in Texas, but it’s highly recommended. Despite liability insurance being mandatory, many drivers in Texas are uninsured or carry only the minimum coverage, which may not be enough to cover serious damages.
Additional Questions
- Does UM/UIM coverage apply to passengers in my vehicle?
Yes, passengers in your vehicle are typically covered under UM/UIM policies. - What happens if I’m in a hit-and-run accident but can’t identify the driver?
Your UM/UIM coverage can still pay for damages and injuries as long as you file a police report promptly.
What Happens If My Car Is Totaled?
If the cost to repair your car approaches or exceeds its actual cash value (ACV), the insurance company may declare it a total loss. The ACV is the car’s market value minus depreciation, and the insurer will pay this amount minus your deductible.
You have the right to negotiate if you believe the insurer’s valuation is too low. Provide evidence such as sales listings for similar vehicles or independent appraisals to support your claim. If you owe more on your car loan than the ACV, gap insurance can help cover the difference.
Additional Questions
- Can I keep my car if it’s declared a total loss?
Yes, but the insurance company will deduct the car’s salvage value from the settlement amount. If the car is issued a nonrepairable title, it cannot be registered or driven. - How does the salvage value of my car affect the settlement amount?
The salvage value represents what the insurer could recover by selling the damaged vehicle. This amount is subtracted from your settlement if you choose to keep the car.
What Happens If I File a Claim Against My Own Insurance?
If the at-fault driver is uninsured, underinsured, or disputes liability, you may need to file a claim with your own insurance under collision or UM/UIM coverage. When doing so, you’ll typically need to pay a deductible.
After paying your claim, your insurance company may seek reimbursement from the at-fault driver’s insurance or the driver directly through a process called subrogation. If successful, your deductible may be refunded.
Additional Questions
- Will filing a claim against my own policy affect my premiums?
If you are not at fault and your insurer recovers costs through subrogation, your premiums generally should not increase. - What is the subrogation process, and how long does it take?
Subrogation involves your insurer seeking repayment from the at-fault party. It can take weeks or months, depending on the complexity of the case.
What If I Need a Rental Car After an Accident?
If your car is undrivable, the at-fault driver’s insurance is typically responsible for covering your rental car expenses. If the at-fault driver’s insurance denies responsibility or if you’re involved in a hit-and-run, your rental reimbursement coverage or UM/UIM coverage may apply.
Rental coverage is usually limited to a reasonable repair period or a set number of days. Communicate with your insurance adjuster to extend coverage if delays occur.
Additional Questions
- How much does my policy cover per day for a rental car?
Rental reimbursement coverage typically specifies a daily limit, such as $30 or $50 per day, up to a total dollar amount. - Will I need to pay for the rental car out of pocket and seek reimbursement later?
In many cases, the rental company bills the insurance company directly. However, confirm this arrangement with your insurer to avoid surprises.
What Happens If the Insurance Company Denies My Claim?
If your claim is denied, the insurance company must provide a written explanation for the denial. Common reasons include disputes over fault, insufficient coverage, or lack of documentation.
To challenge a denial:
- Provide additional evidence, such as photos, repair estimates, or witness statements.
- Request an appraisal if the dispute concerns the claim’s value.
- Consult an attorney if the denial seems unfair or unreasonable.
Additional Questions
- Can I file a complaint with the Texas Department of Insurance (TDI)?
Yes, you can file a complaint online if you believe the insurer acted improperly. - What options do I have if the insurance company delays payment on a claim?
Texas law requires insurers to handle claims promptly. Contact TDI or consult an attorney if delays persist.
How Insurance Companies Handle Claims
Filing a Claim
Notify your insurance company promptly after an accident. Provide:
- Police reports.
- Photos of the scene.
- Medical records and repair estimates.
Texas law requires insurance companies to:
- Acknowledge your claim within 15 days.
- Accept or deny your claim within 15 business days of receiving all necessary documents.
- Pay approved claims within 5 business days.
Dealing With Adjusters
Insurance adjusters work for the company, not you. Their goal is to minimize payouts, which may lead to undervalued claims or denied benefits. Be cautious when communicating with them:
- Stick to factual statements and provide only the necessary information. Avoid giving overly detailed descriptions that could be used against you later.
- Never speculate or admit fault, even casually, as this could jeopardize your claim. Fault is often more complex than it seems and should be determined through a thorough investigation.
- Keep records of all interactions with the adjuster, including phone calls and emails, as these may be crucial if disputes arise.
- Consult an attorney before accepting any settlement offer to ensure it covers all current and future expenses related to the accident, including medical bills, lost wages, and pain and suffering.
Medical and Rental Car Claims
Medical Claims
The at-fault driver’s insurance is responsible for your medical expenses. However, before accepting a settlement, consider potential future treatment needs and consult with your doctor to ensure the settlement amount is sufficient.
Rental Car Claims
If your car is undrivable, the at-fault driver’s insurance or your rental reimbursement coverage may cover the cost of a rental car. Keep your adjuster informed about delays in repairs to extend rental coverage, if necessary.
Resolving Disputes with Insurance Companies
If you disagree with the insurance company’s decision or settlement offer, you have several options:
- Request an Appraisal: Both parties hire independent appraisers to determine the claim’s value.
- File a Complaint: The Texas Department of Insurance (TDI) allows consumers to file complaints online if they believe an insurance company is acting unfairly.
- Take Legal Action: For claims under $10,000, you can file a lawsuit in Justice Court. For larger disputes, consult an attorney to explore your legal options.
Saving Money on Auto Insurance
While auto insurance is a necessity, there are ways to lower your premiums:
- Maintain a clean driving record.
- Bundle policies, such as auto and home insurance.
- Install safety features like airbags and anti-theft devices.
- Shop around for quotes and discounts.
What If I Can’t Find Insurance?
If you’re unable to find an insurer willing to cover you, the Texas Automobile Insurance Plan Association (TAIPA) provides basic liability coverage. While more expensive, TAIPA ensures that you meet the state’s minimum requirements.
Get Help With Your Insurance Claim
Dealing with insurance after a car accident can be complicated and stressful. At Adley Law Firm, we help Houston residents navigate the claims process, negotiate with insurance companies, and fight for fair settlements. Whether you’re filing a claim, disputing a denial, or seeking compensation, our team is here to support you.
For additional resources, visit the Texas Department of Insurance Auto Insurance Guide.
Contact Adley Law Firm today at (713) 999-8669 for a free consultation. Let us help you secure the compensation you deserve.
