Liability insurance protects you if you are financially responsible for someone else’s injuries or property damages due to your own negligence. It is the bare minimum you must carry under Texas law. If you have auto liability insurance and you cause a wreck, your insurance company is liable to pay for any damages you are legally liable to pay up to the limits of your insurance coverage. There are many options for higher limits policies and additional insurance coverage. However, many drivers in Texas carry only the minimum limits policy. A minimum limit liability insurance policy covers damages up to $30,000.00 for one injured person. For more information on what that minimum limits applies to, read: What is Covered by a Texas Auto Liability Policy? The article below is written to inform you about the things that you may not realize are not covered by the typical Texas Liability insurance policy.
What is Not Covered by a Texas Liability Insurance Policy?
There are many things that a bare-minimum liability only insurance policy will not cover. Some of the things liability only insurance will not do include:
- It won’t pay to fix your car regardless of who is at fault.
- It will not pay for your medical bills or personal injuries.
- It will not provide coverage to your passengers or you when someone else is at fault but does not have insurance or does not have enough insurance to cover all of your damages.
- It will not pay to help repair your car if the other driver is at fault and his liability coverage limits are lower than the value of your car.
- It will not fix your car if you hit an animal in the roadway.
- It will not pay to repair your car in an accident where no one is at fault such as hydroplaning on black ide or another potential sudden emergency situation.
- It will not provide you any money to go see a doctor immediately after an accident.
- It will not cover damage caused by hail, wind, flood, or other natural disasters/events.
- It will not cover damages you cause intentionally to someone else or their property.
What Other Optional Coverages Can You Buy to Fill the Gaps of Liability Insurance?
What Other Optional Coverages Can You Buy to Fill the Gaps of Liability Insurance?There are several types of optional insurance coverage that you can get to protect the things liability does not. These include:
- Collision
- Comprehensive
- Personal Injury Protection (PIP)
- Uninsured/Underinsured Motorist Coverages; and
- Medical Payments Coverage.
What is Collision Coverage?
Collision coverage pays to fix your vehicle after a collision, regardless of fault. The coverage also helps pay to fix your vehicle after a collision with an object such as a fence or sign. Collision coverage pays for the cost of repairs on your vehicle regardless of who is at fault. It also covers a no-fault accident, such as if the other driver claims the accident resulted from a sudden emergency or unavoidable accident. Unlike many coverages, there is not a set limit for collision. Instead, insurance will pay an amount based on the actual cash value of your vehicle as long as you collided with another car or object.
What is Comprehensive Coverage?
Another coverage not included in a Texas liability insurance policy is comprehensive coverage. Comprehensive coverage helps cover the cost of damages to your car when non-collision damages occur. This coverage policy includes damages caused by hail, theft, vandalism, hitting a deer, and other non-collision damages. Like collision coverage, comprehensive coverage does not have a set limit for damages the insurance company will pay for. The insurance company will pay damages based on the cash value of your vehicle.
What is Personal Injury Protection Coverage?
Personal injury protection (PIP) coverage, which is typically only $2,500.00 in coverage, helps pay for the medical expenses of your and your passenger’s injuries that are caused by an auto accident, regardless of whether you are at fault for the accident or not. Additionally, personal injury protection coverage also covers other expenses such as lost wages, nursing care, medical supply costs, prescriptions, replacement services, and funeral services. Personal injury protection may also provide coverage if you are struck by a vehicle as a pedestrian.
What is Medical Payments Coverage?
Medical payment coverage, also known as med pay, is a coverage option not included in a Texas liability insurance policy. Med pay coverage is optional in Texas; however, it is highly recommended for additional protection. This coverage helps pay the medical bills that result from injuries due to a car crash. Med pay coverage can be used regardless of whether you are the at-fault driver or not and applies to you and all listed insureds who were injured in the accident. Some of the medical bills covered in med pay coverage include doctor visits, ER visits, x-rays, chiropractic services, and funeral expenses.
How is Med Pay Different From PIP?
The difference between med pay and PIP coverage is:
- Med pay only covers medical bills whereas PIP covers the medical bills plus lost wages, and;
- If you make a recovery against a responsible third-party who cased the accident, then you must pay med pay benefits back to your insurance company whereas, with PIP you do not.
What is Uninsured/ Underinsured Motorist Coverage?
Uninsured/underinsured motorist coverage is not included in a Texas liability insurance policy; however, insurance companies typically sell the two together. Uninsured motorist coverage is an additional coverage that you can add to your car insurance policy. Uninsured motorist coverage pays for property damages and personal injuries when another driver is at fault, and they do not carry insurance. Additionally, uninsured motorist coverage typically covers expenses such as medical expenses, funeral expenses, loss of income, and pain and suffering. In Texas, underinsured motorist coverage is also available to add to your insurance policy. Underinsured motorist coverage applies when you are in an accident with a driver whose insurance policy limits are insufficient to cover the damages to your vehicle, personal injury damages, and lost wages.
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