Auto Insurance
Definition
Auto insurance is a contract between a vehicle owner and an insurance company that provides financial protection against losses arising from vehicle accidents, theft, and other incidents. Texas law requires all drivers to carry minimum liability coverage, though higher limits and additional coverage types offer greater protection.
How It’s Used in Personal Injury Cases
Auto insurance policies contain multiple coverage types relevant to injury claims. Liability coverage pays for injuries you cause to others. Uninsured/underinsured motorist coverage protects you when the at-fault driver has no insurance or insufficient coverage. Medical payments coverage (med-pay) pays your medical bills regardless of fault. Personal injury protection (PIP) covers medical expenses and sometimes lost wages. Collision and comprehensive coverage address vehicle damage. Understanding all available coverages is essential to maximizing your recovery.
Practical Example
Alex was hit by a driver who had only the minimum $30,000 liability limit, but Alex’s injuries exceeded $100,000. Alex’s own auto policy included underinsured motorist coverage with $100,000 limits. After collecting the at-fault driver’s $30,000 policy limit, Alex filed a claim under his own underinsured motorist coverage for the remaining $70,000. His med-pay coverage also paid the first $5,000 of his medical bills immediately, helping with expenses while the liability claim was pending.
Why It Matters to Your Case
The at-fault driver’s liability insurance is typically the primary source of compensation for your injuries, but it may not be enough. Understanding your own policy’s coverage—particularly uninsured/underinsured motorist coverage and medical payments—can provide additional recovery when the other driver’s insurance is inadequate. Review your policy limits and coverage types so you know all potential sources of compensation.
Key Takeaway
Auto insurance includes multiple coverage types that can apply to your injury claim—understanding both the at-fault driver’s policy and your own coverage maximizes your potential recovery.