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Car insurance is a necessity for every driver, offering crucial financial protection in case of accidents, theft, or damage. Yet, understanding the intricacies of your car insurance policy can often feel like deciphering a foreign language. From deductibles to coverage limits, and exclusions buried in the fine print, it’s easy to get lost in the details.
There can also be confusion about what the minimum coverage requirements are for car insurance and what additions would be in a driver’s best interest to include. Here’s a comprehensive guide to help you navigate and understand your car insurance policy.
Car insurance policies typically consist of several types of coverage, each serving a different purpose. You can purchase different amounts of coverage based on your needs.
This pays medical bills, lost wages, and other nonmedical costs for you and your passengers. All auto policies in Texas include PIP coverage unless you sign a written rejection. It also pays if you’re hurt while a passenger in someone else’s car, while walking, or biking.
This is similar to PIP but it only pays medical bills for you and your passengers. It also pays if you’re hurt while a passenger in someone else’s car, while walking, or biking.
If you caused the wreck, this pays for damages to the other driver, his or her passengers, as well as your passengers. It covers injuries as well as property damage. Injuries can include medical expenses, physical pain, and lost earnings. Property damages can include repairs, replacement, rental charges, and diminished value. Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage. Minimum limits may be too low if you cause a multi-vehicle wreck, the other driver’s car is totaled, or there are serious injuries. It is important to consider carrying more than the state’s minimum limits. If you don’t have enough liability coverage, you might have to pay out of pocket or you may get sued.
This pays to repair or replace your car after a collision, even if the wreck was your fault.
This pays for something that is not a collision like if your car is stolen or damaged by fire, flood, or vandalism.
This pays if you’re hit by someone who either has no insurance (called UM or Uninsured Motorist) or not enough insurance (called UIM or Underinsured Motorist). It covers your injuries and property damage. It also pays if you’re involved in a hit-and-run. All auto policies in Texas include UM/UIM coverage unless you sign a written rejection.
If the at-fault driver is being uncooperative with their insurance company, or if the at-fault insurance company is delaying the investigation and handling of your claim, you have the option of filing with your own insurance under this coverage.
Gap insurance covers the amount needed to pay off your car loan if your car is totaled but the amount remaining on your loan is more than the value of your car.
This coverage is optional but can be a good decision right after you finance a new car. You can opt to drop this coverage once the amount owed drops below your car’s value.
This refers to the maximum amount your insurance company will pay for a covered claim. For example, a limit for bodily injury liability might be expressed as $30,000 per person/$60,000 per accident for bodily injury. For per person coverage, it means if you cause the wreck and injure another person, then that person can collect up to $30,000. However, if you injure multiple people, your insurance company will not pay out more than $60,000 total to all injured persons in that wreck.
This is the amount you agree to pay out of pocket before your insurance kicks in. Higher deductibles usually mean lower premiums, but you’ll pay more out of pocket when you make a claim. You don’t want to be in a position where your deductible is much higher than you can comfortably afford in the event you would need to use your insurance.
These are scenarios where your policy won’t provide coverage. Common exclusions include intentional damage, racing, or using your vehicle for commercial purposes without proper coverage (such as driving for Uber or Lyft)
Insurance policies are packed with industry jargon that can confuse even the most diligent reader. Take the time to look up terms like “subrogation,” “endorsements,” or “total loss threshold” to grasp their significance in your policy.
Many policies offer extras like roadside assistance, rental car reimbursement, or coverage for personal belongings inside your vehicle. These can provide added peace of mind but require understanding their limits and conditions.
Don’t hesitate to ask your lawyer, insurance agent, or representative for clarification on any aspect of your policy. They are there to help you make informed decisions.
Life changes, and so do your insurance needs. Review your policy annually or whenever you have a major life event (like buying a new car, moving, getting married or adding your teenager as a driver on your policy) to ensure your coverage still meets your requirements. Premiums also fluctuate so shopping around on your own or through a broker is always wise.
Understanding your car insurance policy is essential for making informed decisions about your coverage. A Katy car wreck attorney is well-versed in the types of coverage available, the limits and deductibles, exclusions, and additional benefits and how your policy (or the at-fault driver’s policies) can financially protect you in the event of a car accident.
Scott Callahan is board-certified in Personal Injury Trial Law and has handled thousands of car accidents covered by almost every car insurance company including Allstate, State Farm, Fred Loya, and Progressive. The firm is available 24/7 to answer your call and evaluate your car wreck claim.
Being involved in an 18-wheeler accident is a scary situation for a driver. A passenger vehicle will always incur more damage than an 18-wheeler or semi-truck simply due to differences in size and force on impact. In 2021, 117,300 large trucks (defined by the National Safety Council as any large or medium truck, excluding buses or motor homes, weighing greater than 10,000 lbs.) were involved in a crash. Of those, 5700 resulted in death.
Some of the largest trucking companies in the United States include UPS, J.B. Hunt, and XPO Logistics.
There are a host of parties that can be held liable:
The truck driver can also be responsible for maintaining their rig and performing inspections on the truck prior to hitting the road. If they failed to perform their checks or did not maintain their truck, the individual could have additional responsibility attributed to them.
Due to a national truck driver shortage, companies may feel pressured to hire under qualified drivers, push drivers to continue to drive past their physical limitations, or fail to provide adequate training. Carriers can also financially incentivize their drivers with unrealistic metrics, which in turn causes drivers to engage in risky driving practices to meet their goals.
More so than the individual driver, the carrier is responsible for the maintenance, inspection and repair of their fleet. Motor carriers can also engage in practices such as improperly loading cargo or not safely securing loads.
Other parties involved in a commercial vehicle accident can include:
Insurance coverage is very different for 18-wheelers than it is for your personal car. There are multiple coverages available to properly compensate you for things like medical expenses, pain and suffering, lost wages and more.
If you are in an 18-wheeler accident, you should consult with an experienced, board-certified personal injury attorney as soon as possible. Your attorney will develop a strategy to give you the most compensation to recover and move forward with your life.
Scott Callahan is a board-certified Katy personal injury lawyer by the Texas Board of Legal Specialization and has been in practice for 25 years. Give us a call today – we are available 24/7 at 713-888-9000.
A contingency fee is frequently used by many personal injury law firms, but what is it exactly? Do you really not pay anything out-of-pocket? What happens if you do not win your case? Read on for answers to these questions and more.
There are different ways lawyers can be paid for their services. The first way is to pay an hourly rate and the client will be charged the total amount of time worked on a case. This type of fee agreement is often used by larger law firms. The lawyers and various support staff, like paralegals, bill for their hours worked on a case.
Lawyers can also work on a fixed fee. This is when the attorney charges a flat rate for specific legal services they will perform for you. This type of arrangement is common for estate planning attorneys who may be setting up a will or offering a package of estate planning services.
A contingency fee is structured differently from hourly or fixed fees. Clients do not pay any money upfront or out-of-pocket to the attorney. Instead, the lawyer only gets paid if there is a settlement, judgment, or verdict. When the case is completed and your attorney has successfully secured a recovery, they receive a percentage of that recovery as their attorney’s fees. However, if no recovery is made, then you do not owe anything to the law firm. So, the lawyer only gets paid if he or she gets you compensation.
The percentage of recovery paid to the lawyer can vary anywhere from 33% to 45%. The percentage and an explanation of the contingency fee must be clearly outlined in the agreement you receive at the outset of your case.
Throughout the course of your case, there will be various expenses incurred. Examples of expenses include:
In a contingency fee agreement, the attorney will front the expense money necessary to pursue the case. The client does not pay any expenses out-of-pocket. The agreement will disclose that these expenses paid for by the lawyer will be reimbursed to their firm when there is a recovery for the client (via settlement, judgment, or verdict). However, it is important to note that these case expenses are typically not owed to the law firm by the client in the event there is no successful recovery.
The advantages of a contingency fee agreement are numerous. The first, and most obvious, advantage is that a client does not have to pay any fees upfront to hire their attorney. This takes financial stress off the client so they can focus on getting better and recovering from their injury.
Because a lawyer will not make any money if they do not win the case, it gives them a large incentive to do everything they can to secure the maximum amount of money possible for you. This can also make them selective in which cases they will accept. If your lawyer takes on your case, they likely think you have a reasonable chance at winning a recovery.
The last advantage is that if you do not win your case, then you do not owe any money to your attorney – either for fees or case expenses. It is important, however, to be sure to review your specific fee agreement, make sure it specifies these terms, and discuss it with your attorney at the beginning of your case so there are no surprises in the end.
Here at Scott Callahan & Associates, this is the only fee structure we offer and believe strongly in the advantages and flexibility it gives our clients. If you have been injured, give us a call today. Our Katy personal injury lawyers are here 24/7 to review your claim and answer all your questions.
