Understanding Insurance In Motor Vehicle Accident Cases

Last updated on May 19, 2025

Motor vehicle accidents can turn your life upside down in an instant. Between physical injuries, emotional trauma and property damage, the aftermath of a collision brings overwhelming challenges. However, one of the most complex aspects of recovery involves navigating the insurance landscape, which determines how your damages will be covered. Many accident victims find themselves at a disadvantage when dealing with insurance companies that prioritize their bottom line over fair compensation.

At David Komie Law, attorney David Komie and our legal team have witnessed countless clients struggle with insurance issues following accidents throughout Austin and Travis counties. Known as “The Attorney That Rocks,” David has developed this comprehensive guide to help you understand the insurance factors that impact your recovery. With proper knowledge of how insurance works in motor vehicle accident cases, you can better protect your rights and pursue the compensation you deserve.

Insurance Basics In Texas

Texas operates under a fault-based insurance system, meaning the party responsible for causing an accident bears financial responsibility for resulting damages. State law requires all drivers to carry minimum liability insurance coverage of:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury when multiple people are injured
• $25,000 for property damage per accident

While these minimum requirements provide basic protection, they often prove inadequate in serious accident scenarios. Texas drivers may also purchase additional coverage types, including collision, comprehensive, personal injury protection (PIP), uninsured/underinsured motorist protection and medical payments coverage. Understanding your policy details before an accident occurs allows you to make informed decisions about your financial protection on Texas roadways.

Determining Fault And Liability

Insurance companies use various methods to establish fault in motor vehicle accidents. Their investigation typically includes reviewing police reports, analyzing vehicle damage, interviewing witnesses and examining traffic laws relevant to the accident scenario. In Texas, modified comparative negligence rules allow recovery of damages as long as you are not more than 50% responsible for the accident.

What many accident victims fail to realize is that insurance adjusters work to minimize payouts. Their initial fault determinations often undervalue your claim or place excessive blame on you. Documentation plays a critical role in fault determination. Collecting photos of the accident scene, obtaining contact information from witnesses, preserving medical records and maintaining a journal of your recovery process all provide valuable evidence to counter insurance company claims about liability percentages. The stronger your evidence, the harder it becomes for adjusters to shift blame inappropriately.

Coverage Limits And Deductibles

Every insurance policy contains specific limitations on what the insurer will pay. These limits represent the maximum amount your policy covers for bodily injury or property damage claims. Additionally, most policies include deductibles – the amount you must pay out-of-pocket before insurance coverage kicks in.

Higher coverage limits provide greater protection but come with increased premium costs. Similarly, higher deductibles typically lower your premium payments but increase your personal financial responsibility following an accident. Finding the right balance requires careful consideration of your financial situation, assets to protect and risk tolerance. Unfortunately, many drivers discover their coverage inadequacies only after an accident occurs.

Common Issues In Motor Vehicle Accident Claims

The insurance claim process rarely proceeds smoothly, especially in cases involving significant injuries or disputed liability. Some of the most common challenges include:

• Delays in claim processing designed to pressure you into accepting lower settlements
• Disputes over the severity of injuries or the necessity of medical treatments
• Lowball settlement offers that fail to account for long-term consequences
• Denials based on policy exclusions or coverage limitations
• Bad faith practices, including misrepresentation of policy terms or unreasonable demands

These tactics can leave accident victims struggling financially while recovering from injuries. Understanding that these practices are standard industry procedures helps you avoid common pitfalls during the claims process.

Role Of Legal Representation In Insurance Claims

Working with an experienced motor vehicle accident attorney provides several advantages when dealing with insurance companies. A lawyer familiar with Texas insurance laws can:

• Accurately evaluate your claim’s true value, including future medical needs
• Handle all communications with insurance adjusters, protecting you from making damaging statements
• Gather and present compelling evidence supporting your claim
• Negotiate effectively from a position of strength and knowledge
• Take your case to trial if a fair settlement cannot be reached

Most personal injury attorneys work on a contingency fee basis, meaning they only get paid if you receive compensation. This arrangement allows access to quality legal representation regardless of your financial situation following an accident.

The Path Forward After An Accident

Understanding the insurance aspects of motor vehicle accidents empowers you to make informed decisions during a challenging time. Review your current insurance coverage to identify potential gaps, document everything following an accident and consider consulting with a qualified attorney before accepting any settlement offers.

If you have questions about your motor vehicle accident case in Austin or surrounding areas, contact David Komie Law at 512-937-1291 or through our online contact form for a free consultation about your situation.