Insurance law and terminology for the state of Texas

In the state of Texas, the law mandates minimum automobile liability insurance coverage for automobiles registered in the state. This includes property damages and personal injury coverage, which we will now discuss. Depending on the terms of the individual policy, liability insurance typically covers the cost of property damage, including the cost of repair or replacement for any property damaged as the result of an accident (property damage). Liability insurance also pays medical bills and lost wages as a result of bodily injuries incurred in an accident (personal injury).

Texas law requires that each car registered in the state have a minimum of $20,000 in insurance coverage for one person injured in an accident, and a minimum of $40,000 for all persons injured in an accident. These are considered (policy limits). In addition, Texas requires a minimum $15,000 in coverage for property damage.

Conversely, Texas law does not mandates coverage of policies, when you are involved in an accident with an uninsured, underinsured, or hit-and-run driver. The rationale is that every car, according to the law, should have its own coverage, hence, why have it. Such coverage typically pays medical bills and lost wages for you and your passengers, in a case where you cannot collect these damages from the driver at fault for the accident, and we highly encourage each consumer to get it.

Insurance companies are allowed to offer Texas drivers a choice between purchasing auto insurance for the traditional fixed installment at an annual rate, and the more innovative cents-per-mile rate. On the other hand, under the traditional system a car owner purchases insurance at an annual rate irrespective of the frequency with which the owner uses the car, under the cent-per-mile system, an owner pays for coverage only for those miles driven. Consult with your insurance company to see what type they offer to you.

Texas designed this system to make compulsory insurance more affordable, thereby reducing the incidence of illegally uninsured motorist. A cents-per-mile rate works in this way: An insurance company assigns your car to one of its rate groups according to your zip code, car use and type, driver type, and other information about your household. Your car might be put into a group paying $500 a year.

When the insurance company determins that the average miles a year for cars in your group was 10,000, the alternative mile rate for your group would be 5.0 cents a mile. If you chose the mile rate instead of the annual rate, you might initially buy 2,500 miles for $100 (= 5.0¢/mi. x 2,500 mi.) plus a nominal expense fee. The insurer would add these miles to your car's current odometer reading to determine the mileage at which coverage would end. Before you drive all these miles, you would have to buy more miles to remain legally insured.

The insurer may wish to purchase additional insurance coverage beyond compulsory insurance. In many cases, the owner of an automobile, may be held personally liable for any damages in excess of the insurance coverage. Purchasing additional coverage could protect your personal assets in case of a suit.

The following are the basic terminology used by insurance companies used when dealing with aditional insurance coverage. Basic Reparations or Medical Payments Coverage, Collision Coverage, and Comprehensive Coverage. Basic Reparations Coverage covers bodily injury and medical expenses of an at-fault driver who does not have medical insurance. Collision coverage pays for damages incurred by the at-fault driver in accidents involving collision. Finally, Comprehensive Coverage pays for damage to a vehicle not caused by collision, including damages caused by theft, vandalism, flood, fire, and explosion.

If you have been injured as a result of an accident, please contact our firm so that we can explain to you your legal rights. We specialize in any type of accident, including but not limited to auto, truck, airplane, boat, motorcycle, car, bus, rollovers, roof crush injuries, death, brain injury, multiple trauma, broken bones, fatal injuries and more. Please call us (210) 979-9777 or visit our website http://www.thebaezlawfirm.com or http://www.sanantoniopersonalinjurytriallawyers.com so that we can set you up a free initial consultation with our attorneys. We are The Baez Law Firm, and "we care about your legal needs!"