Many people know not to stress about practical issues right after a car crash. After all, car insurance will cover their losses, or so they think.
People often don’t understand quite how the Texas motor vehicle insurance system works, which may lead to disappointment when they don’t receive the compensation or coverage that they expected. When you understand what car insurance covers in Texas, you will have an easier time making a claim and getting the money you need after a crash.
What can you expect insurance to cover?
The cost to replace or repair your vehicle
Property damage is a major concern in motor vehicle collisions. The more your vehicle is worth, the more it will likely cost to repair. In cases where there is damage to the structure of the vehicle or other crucial systems, the insurance company may declare it a total loss. That means you have to scrap your vehicle and buy a new one.
Unfortunately, the insurance coverage available from the driver who caused the crash may not be enough for those costs. Texas only requires $25,000 worth of property damage liability coverage. If the other driver doesn’t carry coverage beyond the bare minimum, $25,000 might be the maximum amount of compensation available to you to replace or repair your vehicle.
Your medical bills and lost wages
Drivers also have to carry bodily injury liability protection. The amount of coverage is variable and depends on the number of people involved in the wreck. In a crash that hurts one person, a driver may have as little as $30,000 worth of medical coverage. If two or more people get hurt, the minimum amount of coverage is $60,000. That amount has to cover all of the medical bills and the lost wages of the people hurt in the crash.
Your policy can also help
You can choose to carry coverage beyond the bare minimum required by Texas law. Supplemental coverage can help protect you, especially if you get into a crash with a driver who doesn’t have much insurance.
You can purchase collision coverage to help cover repairs to your vehicle or replacement costs not paid by the other driver’s Insurance. Uninsured and underinsured motorist coverage can also reimburse you for crash-related expenses that the other driver’s policy won’t cover.
Learning about how insurance works will help you better handle a claim after a motor vehicle collision.