Fault vs. No-Fault Insurance in an Auto Accident

Many states differ on the types of insurance they require drivers to carry. Some states require a no-fault insurance, often known in Texas as PIP.

Currently, Texas is not a no-fault state. In Texas, every driver is required to carry liability auto insurance to cover expenses for the other driver in the unfortunate event of a motor vehicle accident. If you are at fault in an auto accident, you are responsible for paying all medical bills and property damage expenses for yourself and anyone else involved in the accident.

A Texas vehicle owner must have a minimum amount of liability insurance coverage in the form of:  $30,000 of bodily injury coverage for each person, $25,000 for property damage, and $60,000 for bodily injuries per accident. This minimum auto coverage does not provide any coverage to your personal vehicle. If the costs of the other driver’s medical expenses or property damage exceed your insurance policy limits, you are required to pay out-of-pocked for their expenses.

If you’ve been involved in a truck or car accident in Texas, you will need to provide proof of financial responsibility (insurance card.) Penalties for violating this state law vary from $175 for a first offense to $4000 if you cause an accident resulting in serious personal injury or death.

In No-Fault states, like Florida for instance, drivers are required to carry “no-fault” insurance with them in the amount of $10,000 to cover injuries and or lost wages sustained as part of an auto accident.  With no-fault insurance, your provider must pay for medical treatment for yourself and your passengers. In Florida, after an accident a patient must seek initial service and care from a licensed physician within 14 days of the motor vehicle accident, in order to receive PIP benefits. You then must be diagnosed with an emergency medical condition (“EMC”) in order to receive the $10,000.00 of PIP benefits that a motorist is required to carry. Some types of EMC are: serious jeopardy to patient health, serious impairment to bodily functions, or serious dysfunction of any bodily organ or part.

Dealing with insurance companies after an auto accident can be frustrating and confusing. If you or anyone you know has been involved in an auto accident contact our Houston Personal Injury attorneys  and let us get to work for you.