How Commercial Truck Insurance Works in Texas Accident Cases
You don’t have to drive far on Texas roadways to find commercial trucks. These trucks dominate the roads with their enormous size, and they can weigh as much as 80,000 pounds. Because of these factors, a commercial truck accident can be far more devastating for all parties. Special operating rules apply to these trucks for the safety of everyone on the road, and there are also special insurance requirements. The truck insurance requirements are complex, so it’s important to understand their protections and coverages if you’re an accident victim in Texas.
Why Commercial Truck Insurance Is More Complex Than Auto Insurance
Commercial truck insurance requirements are mandated by both the Texas and the federal governments. The federal requirements apply if a truck is involved in interstate travel. More than that, the insurance requirements vary based on the cargo weight and cargo type. For example, trucks weighing more than 26,000 pounds or trucks carrying hazardous cargo are subject to greater coverage requirements.
Trucking companies are required to carry insurance coverage, and commercial truck drivers may also need to meet their own coverage requirements if they are independent contractors. After an accident involving a commercial truck, it’s imperative to know what minimum coverages the trucking company and driver have. While this can be challenging, your truck wreck lawyer will work hard to determine and fight for the maximum compensation for your claim.
Types of Commercial Truck Insurance Coverage
One of the first steps your commercial truck accident attorney will take is to identify the different types of coverage that are in place as well as the coverage amounts. These coverage types include primary liability insurance, cargo insurance, physical damage insurance, umbrella and excess liability coverage, and occupational accident coverage.
Primary Liability Insurance
Liability insurance provides financial compensation to the victims of a commercial truck accident. This compensation is for the victim’s medical bills, vehicle repairs, lost wages, end-of-life expenses in the event of death, and other expenses. It’s important to note that primary liability insurance does not pay for the insured’s expenses related to the accident. In addition, the insured must be deemed the responsible or negligent party in the collision.
Cargo Insurance
Cargo insurance provides coverage for the cargo being carried by the truck. Under federal law, trucks that travel across state lines must have at least $5,000 in cargo coverage. However, if the cargo value is higher than this, the shipper or receiver of the cargo may have $100,000 or more in cargo coverage.
Physical Damage Insurance
Physical damage insurance isn’t required by state or federal laws, but it is often required by truck lenders. This coverage is available with collision insurance or comprehensive insurance. Collision coverage provides compensation for damage to the truck. Comprehensive coverage extends to non-collision damages.
Umbrella and Excess Liability Coverage
Any party responsible for a motor vehicle accident is fully responsible for all damages, including those exceeding their insurance policy’s coverage. Because of this, some commercial trucking companies hold umbrella and excess liability insurance. This insurance provides coverage beyond the primary policy limits.
Occupational Accident Insurance
Owner-operators, or independent truck drivers, may have occupational accident insurance. This is a supplemental insurance that provides these individuals with additional benefits beyond their auto or truck insurance policy. Coverage might pay for the truck driver’s lost wages, medical expenses, and death or dismemberment costs related to an on-the-job accident.
Texas and Federal Insurance Requirements for Commercial Trucks
Trucks driving only within Texas’s borders must comply with state liability insurance requirements. For trucks that weigh 26,000 pounds or less, a $300,000 liability insurance policy is required. Higher insurance coverage is required for trucks with a gross vehicle weight of more than 26,000 pounds. For trucks carrying non-hazardous freight, the minimum liability insurance is $500,000. This increases to $1 million if hazardous cargo is being transported. Trucks carrying extremely hazardous cargo must be insured by a $5 million liability insurance policy.
For trucks involved in interstate travel, liability coverage is mandated by the Federal Motor Carrier Safety Administration. Commercial trucks with non-hazardous cargo are required to hold $750,000 in liability coverage. Oil and hopper freight trucks need a $1 million liability insurance policy. Those hauling hazardous materials must have a $5 million policy.
Who Is Covered Under Commercial Truck Insurance Policies?
An important step taken by your truck accident attorney is determining who is insured under each type of truck insurance policy in place for your claim. For general liability insurance, truck drivers, trucking companies, owner-operators, independent contractors, and permissive users will have a policy. Additional coverage varies based on both who owns the vehicle and who is driving it. Determining who is covered by the policy plays a significant role in the financial compensation available.
How Insurance Coverage Is Triggered After a Texas Truck Accident
After a commercial truck accident, the responsible party must be determined. While this might be only the driver or only the company, it may also be a combination of both. If the driver is an employee of a company, the company may only bear some responsibility if the driver was on-duty at the time. If the driver is an independent operator, the driver would be responsible. Likewise, if the truck was leased or borrowed, the owning entity could potentially be held responsible in some situations.
It’s also important to focus on the root cause of the accident. For example, the truck driver may have run a stop sign and collided with a personal vehicle. However, if that truck’s brakes were faulty or weren’t installed properly, the entity responsible for manufacturing or installing the brakes may share liability.
Common Insurance Disputes in Texas Truck Accident Cases
Whether your truck accident attorney determines you are legally entitled to compensation from one insurance company or multiple, there are numerous reasons why insurers may dispute claims. A dispute can delay your access to much-needed compensation after a serious truck accident, and it can reduce the settlement amount. Your truck wreck attorney is fully skilled in managing denied and disputed claims.
Some insurance companies may dispute fault and causation. For example, in the event of a driver running a red light, the driver’s insurance may cite faulty brakes. The brake manufacturer, however, may cite poor installation. There are other common reasons for a dispute, such as over policy limits and applicable exclusions.
How Insurance Companies Defend Truck Accident Claims
Commercial truck insurance companies use many tactics to defend against costly claims. For example, they often use rapid-response investigation teams. This rapid response may initially seem like it’s in the victim’s best interest, but it leaves the possibility open for things to fall through the cracks. As a result, the claim may be settled for a much lower amount than what the victim is entitled to. In addition, victims might not yet have a commercial truck accident lawyer on their side. Without representation, they may be asked to provide recorded statements that could impact the final claim settlement.
In some cases, insurance companies present the victim with a lowball settlement offer early on, which could lead to the victim to accept the offer without a lawyer’s review and advice. Such offers may have a lump sum settlement that fails to take into account future costs that the victim may incur. They also often minimize injury severity. In fact, some offers are made before the full scope of injuries and treatment are determined.
How Commercial Insurance Affects Compensation in Texas Truck Accident Cases
Trucking accidents are often far more costly than passenger vehicle accident, resulting in more severe injuries, a greater likelihood of fatalities, and more damage to vehicles and property. Because of this, many companies and owner-operators carry more than the minimum amount of coverage. Often, total coverage is serviced by more than one insurance company. A skilled truck accident lawyer can use higher insurance coverage to work toward a more advantageous settlement for you.
In Texas, the law uses a modified comparative negligence rule. In many instances, multiple factors lead up to a truck accident. The victim may have contributed to the accident to a degree, but the greater fault lies with the driver or company. As long as the injured person’s fault is 50% or less, this modified comparative negligence rule allows them to seek compensation.
What Truck Accident Victims Should Do to Protect Their Insurance Claim
The steps you take immediately after your accident and in the days and weeks following it can play a significant role in the outcome of your claim. As soon as possible after the truck accident, seek medical attention. Remember that shock can mask symptoms, so you should get care even if you feel fine. Document everything, and take steps to preserve evidence, such as photos, police reports, and witness statements.
As soon as possible, contact an experienced truck wreck attorney for legal guidance and representation. Avoid giving statements of any kind before speaking to your attorney. Keep in mind, with the exception of a wrongful death claim, you must file a claim within two years of the accident in Texas.
When to Speak with a Texas Truck Accident Lawyer
Insurance companies focus on settling claims for as little as possible. At the same time, they have a team of lawyers working for them. Your ability to pay for medical expenses, cover lost wages, and more depends on the claim settlement, so you need a level playing field. Whether you or a loved one has been injured or worse, you need the guidance and representation of an experienced attorney. Things like disputed coverages and the involvement of multiple insurance companies add a cloud of confusion that your attorney can navigate through as well.
With multiple policies and difference coverages to contend with, commercial truck insurance is complex. Your Texas truck accident attorney understands these complexities as well as the tactics insurances companies use to reduce their payouts on claims. More than that, your attorney is skilled at working toward the best outcome available to you under the law.