PRACTICE AREAS

Insurance Coverage

The only type of automobile insurance mandated by the State of Texas is liability insurance. The minimum amount of liability insurance is typically referred to as 25/50/25, which means that the insurance company will not pay any more than $25,000 per person, and no more $50,000 per accident. The 25 refers to property damage, which means that the insurance company will pay no more than $25,000 to cover property damage.

However, 25/50/25 is only the minimum amount of liability insurance required. A policy holder may contract for coverage in excess of the minimum limits. For instance, insurance policies in Texas usually range in one of these increments: 25/50/25, 50/1000/50, 100/300/100, or 250/500/100. In addition to having large limits of liability insurance, some policyholders may also contract for additional insurance, called umbrella coverage.

To better explain the policy, lets assume that Larry and Moe are severely injured in a car accident with a liable party that has 25/50/25 in liability insurance. This means that the liability insurance company will not pay any more than $50,000 for the entire accident. Moreover, neither Larry nor Moe will be entitled to any more than $25,000 per person. For instance, even if Larry and Moe both have $25,000 in medical bills, Larry and Moe will only recover from the liability insurance company $25,000 each.

Essentially, no matter how many people are involved in the auto accident, and no matter how serious the injuries, the liability insurance company will not pay any more than the applicable liability insurance policy limits. Therefore, when you have three or more claimants with serious injuries and only limited insurance proceeds, it can become a race to the money.

Even though liability insurance may be exhausted as described above, additional money may still exist in the form of underinsured motorist coverage. Of course, whether a claimant is entitled to underinsured motorist benefits depends upon the particular circumstances of the case and the type of personal auto insurance carried by the driver and/or the passenger(s).

Like personal automobiles, insurance coverage for commerical vehicles may vary, however federal law mandates that 18-wheelers must carry liability insurance of a minimum $1,000,000.  However, $1,000,000 is only the minimum amount required by federal law, meaning that some 18-wheelers carry liability insurance far in excess of $1,000,000.  However, if an 18-wheeler has only $1,000,000 in liability insurance, this means that $1,000,000 is the most the insurance company will pay for a single accident regardless of the number of injured people.

If you have suffered injuries during an auto or motorcycle accident, trucking collision, 18-wheeler accident, or other mishap, and would like additional information about liability insurance coverage, including underinsured or uninsured motorist benefits, then you should contact a personal injury lawyer with Joel A. Gordon & Associates for your free consultation.

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If you and/or a family member have suffered serious or fatal injuries due to an accident, you and/or the family member may be eligible to file a claim. However, persons seeking to preserve any potential legal claims should contact an attorney promptly because Texas has mandatory time periods ("Statute of Limitations") in which a lawsuit must be filed.