Types of Compensation in Car Accident Claims
In the state of Texas, if you've been in a car accident, the basic automobile insurance liability coverage that meets the state’s financial responsibility requirements will pay for the following:
- Medical costs, lost wages, funeral costs, and compensation for pain and suffering
- Repair or replacement costs for your car
- Car rental expenses while your car is being repaired
- Punitive damages that are awarded by a court
- Attorney fees if you are sued
- Bail up to $250 if you are arrested following an accident
Who Does It Cover?
The basic liability policy will cover you and you and your family members; this is defined as anyone living in your home that is related to you by blood, marriage, or adoption. It also covers other people driving your car with your permission, family members that are attending school away from home, and spouses living elsewhere during a martial separation. Additionally, your policy may cover you and your family members when driving someone else’s car - including a rental car, but will not cover vehicles that you do not own but have regular access to, such as company cars.
It should be noted that some policies will not cover all residents of your household - including family members – if they are not specifically named in the policy. It is important to check you policy declaration sheet to determine if your policy requires the names of all of the people the policy covers.
Collision Coverage
The collision portion of the policy will cover the cost of repairing or replacing your car after an accident. You are entitled to receive an amount equal to your car’s actual cash value minus your deductible. The actual cash value is the market value of a car similar to yours that is not damaged.
Comprehensive Coverage
Comprehensive coverage pays for the cost of replacing or repairing your car for damage that occurred as a result of anything other than a collision such as hail, fire, vandalism, falling objects, etc. This portion of your policy will also pay for your rental car if your car is stolen. As in collision coverage, the payment is limited to your car’s actual cash value minus your deductible.
Personal Injury Protection Coverage
Personal Injury Protection (PIP) coverage covers your medical payments plus 80% of any lost income. It will also pay for the cost of hiring a caregiver for an accident victim when they are unable to care for themselves. In addition, this coverage includes accidents that involve pedestrians or bicyclists. Texas insurance companies must offer you a minimum of $2,500 in PIP coverage, but you can buy additional coverage if desired. Also, if you don’t want any PIP coverage at all, it must be rejected in writing by the policy holder.
Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist (UM/UIM) coverage is meant to cover your medical bills, lost wages, disfigurement, pain and suffering, and permanent or partial disability if the accident was caused by an uninsured motorist, a hit-and-run driver, or a motorist who did not have enough insurance to cover your damages. It also pays for any personal property in the car that was damaged in the accident. As in PIP coverage, if you do not want UM/UIM coverage, it must be rejected in writing by the policy holder.
Get Help with Your Car Accident Claim Today
At Zinda Law Group, our Austin car accident attorneys have the knowledge and resources necessary to help you pursue maximum compensation from the insurance company. We can help you seek damages for medical bills, lost income, property damage, pain and suffering, and all the other ways the wreck and your injuries have impacted your life.
Call us today at (800) 863-5312 for a 100% free consultation with our experienced personal injury lawyers.
Meetings with attorneys are available by appointment only.