Automobile Insurance Claims

We represent clients with a variety of automobile insurance claims.   Most of these claims arise out of personal injuries they receive in automobile accidents.  A claim against your own insurance company or the insurance company for the car in which you were a passenger, such as a claim for collision coverage, underinsured motorist coverage or personal injury protection (PIP) coverage is referred to as a first party claim.  A claim against the insurance company insuring the driver of the other vehicle is referred to a third party claim.  What is important about this distinction is the fact that the insurance company in a first party claim owes you a duty of good faith and fair dealing and can be liable to you if they act in bad faith.  For more information concerning bad faith claims, please see our page on Insurance Bad Faith.   You should also note that the Texas Insurance Commission has set forth a Consumer Bill of Rights for Personal Auto Insurance which sets forth many of your rights when it comes to auto insurance.

What many people don’t recognize is that in the situation where they are making a claim against another person’s policy, where they are neither the named insured or covered party, the insurance company has a very limited duty to treat them fairly.  These claims are referred to as third party claims. In third party claims the insurance company’s responsibility is to their own insured.  As a result, when you are making a third party claim, the insurance company feels free to low ball your claim and delay payment without fear of a bad faith claim being filed against them. 

Personal Injury Claims

Whether you are filing under your own insurance or are making a third party claim, we would suggest that you follow the following links for more information concerning these claims:

• Car Accidents and OtherVehicle Accidents

• Automobile Accidents
• Motorcycle Accidents
• Truck Accidents
• Accidents Caused by Drunk Drivers
• Dram Shop Liability
• Bicycle Accidents
• Pedestrian Accidents
• Accident FAQ
• Should I Hire a Lawyer

Property Damage Claims

If you are filing a property damage claim, such as a collision claim, against your insurance carrier, your insurance carrier will be bound by the terms of your insurance contract and must pay you in a timely manner.  A third party insurance carrier owes you no such obligation.  They represent their insured and they will only pay what their insured could ultimately be found liable to pay if a suit is filed.  In Texas, the third party insurance carrier’s obligations depend on the extent of your loss.

If the cost of repairing your vehicle is more than the fair market value of your vehicle in its pre-accident condition, your vehicle will be considered a total loss. However, some insurance companies may consider your vehicle a total loss if the cost of repair exceeds 75% of the pre-accident value of your vehicle.  If your vehicle is not a total loss then the negligent party would generally be liable to you for the cost of repairing your vehicle plus the cost of obtaining a rental vehicle during the time your vehicle was out of service.  Our firm was the counsel for the plaintiff in the Mondragon v. Austin case which expanded the liability of the third party for rental costs when they engaged in delaying practices which increased the rental cost.

If your vehicle is considered a total loss then you are entitled to recover the fair market value of your vehicle in its pre-accident condition, plus sales taxes and title transfer fees.   Under current case law established by the Texas Supreme Court, the negligent party may not be responsible for any loss of use damages or rental expenses suffered as a result of the loss of a totaled vehicle.   This law has been criticized and most insurers will pay rental costs for a brief period of time after the loss, usually up to the time they make determination of the fair market value.   However, as your rights are limited in the case of a total loss, it will be in your best interest to shop for a replacement vehicle as soon as possible after the loss.

As in any case, you are not bound by the insurance carrier’s determination of value or determination of what repairs are necessary.  You have the right to contest their determination and file suit if necessary.