Car insurance is required by law in every state, although car insurance coverage terms and minimum coverage amounts differ from state to state. At the state level, insurance laws dictate how insurance carriers must act with regards to paying out insurance claims and other related issues. When a subrogation claim is filed against you in the Texas by an insurance company as a result of a car accident, you and your insurance company are responsible for the damages caused if the accident was your fault.
Subrogation is a term that describes an action taken by an insurance company. Many subrogation claims involve auto insurance companies paying its customer for their losses or injuries associated with an accident that was not his fault. The auto insurance company then seeks out the party that was at fault for the accident, which is usually the other insurance company, and covers the damage payments.
In Texas, there are specific laws pertaining to personal injury protection insurance, which covers medical expenses or lost wages when a policyholder becomes injured in an accident. Some states require personal injury protection insurance, which are states that have “no-fault” insurance laws. In other words, an individual’s own insurance pays for his damages no matter who caused the accident. Texas is not a state that requires personal injury protection insurance, but the state requires that insurers offer the option to customers and must ask them to waive the option when purchasing auto insurance.
Texas Insurance Code
According to the Texas insurance code, subrogation for personal injury protection payments is prohibited. This means that if an individual is involved in an auto accident, his personal injury protection insurance will provide payment for his damages no matter who was at fault. However, his insurance company will not be able to pursue the other party’s insurance company to collect payment.
If you have auto insurance and personal injury protection insurance in Texas, paying the subrogation claim should not be an issue because the subrogation claim will be paid by your insurance company or the insurance company of the other party involved in the accident. If you are ever caught at-fault for being in a car accident with expired or no auto insurance, which is illegal in all states, the insurance company that files a subrogation claim against you can have your license suspended by notifying the Texas Department of Motor Vehicles. If you refuse to make the payment on the subrogation claim, a lawsuit may be filed against you.