Austin, TX – All drivers in Texas are required to carry basic liability insurance while driving on the state’s roads. Other forms of coverage can be purchased from insurance providers, however this is not mandated by law. The government and the public have a strong interest in making sure that drivers have liability coverage, which is the reasoning behind this policy. The possibility of litigation also creates scenarios where it is important for drivers to have insurance to help pay for any judgments against them that are related to an accident.
The purpose of liability coverage
In a general sense, liability insurance protects the public as a whole from damage caused during car accidents. When each driver on the roads has liability coverage, there is at least a basic level of financial accountability for any crash that happens, and the insurance company will attempt to cover the costs of as much damage as possible based on the policy. The combined effect of everyone’s coverage ideally helps pay for any costs that car and property owners incur through no fault of their own.
Lawsuits after accidents
Another reason why liability coverage is important is to protect the driver from lawsuits. Every state has negligence laws which essentially make people responsible for any injuries or property damage that they cause. This most commonly happens during car accidents, and the driver’s insurance company will often have to pay out certain amounts to settle lawsuits filed by accident victims.
What kinds of costs follow accidents?
A typical liability policy in most states will cover somewhere in the tens of thousands of dollars worth of losses. When adding up a victim’s medical treatment, property damage, and lost wages, these amounts can be exhausted quickly in a lawsuit. Serious injuries may even require millions of dollars worth of treatment over the course of the victim’s lifetime. This is why some high risk drivers and companies that own commercial vehicles will purchase liability policies that can cover very large amounts. It is possible that the defendant named in a car crash lawsuit will be personally responsible for some of these costs if the insurance coverage is not sufficient to pay for all of the damages. There are also some cases where a driver who engaged in reckless or malicious behavior will have to pay out punitive damages as a form of punishment. These are not related to the specific losses that the victim sustained.
More information from an accident attorney
The Robson Law Firm works with local clients in the Austin, Texas area to file auto accident lawsuits and receive compensation. Their attorneys are available to meet with anyone who has more information about this process.
Firm contact info:
1114 Lost Creek Blvd., Suite 440, Austin TX 78746
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