Under Texas law, 25/50/25 insurance coverage is the minimum standards required for state drivers in case of an automobile accident. The 25/50/25 coverage standard consists of $25,000 in case of bodily injury or death of one individual, $50,000 in the case of more than one individual injured through bodily injury or death, and $25,000 for damage or destruction in the event of an accident.
The state of Texas follows a “tort” law or system, which means when there is an occurrence of an accident where there is more than one party involved, then one party has to be responsible for the cause or fault of the accident, and therefore is responsible for all damages. Once responsibility is determined, the damage claimed is usually handled by the responsible party’s insurance company. Due to the state following a “tort” policy, however, it is recommended that a driver carry higher coverage than the state minimum required. In addition, if all damages are not covered by the insurance company, the victim can file a lawsuit against the responsible party in order to recover the rest of the damages.
After a claim, the state of Texas requires that the insurance company must respond within 15 days of the claimant of submitting the claim in writing. It also has 15 days to either accept or deny the claim. And if the claim is accepted, the company must disburse the check within 5 business days of acceptance. Keep in mind that insurance companies are notorious for fighting claims, and an experienced car accident lawyer is imperative in the state of Texas.