Ask a Lawyer - Archive

I was involved in an auto accident, and the other driver is now suing me. Does my insurance company have to protect me?

Thank you for your inquiry. Under Texas legal principles, your insurance company has a duty to defend you against claims so long as the claim falls within the scope of coverage. You can find out which claims are covered and which are not covered by looking at your insurance policy and exclusions, but most auto policies are standardized. Also, when the status of a claim is vague or subject to interpretation, the policy holder gets the benefit of the doubt.

In addition, your insurance company has the duty to indemnify you, which means that it must pay claims that are meritorious and fall within coverage. However, the insurance company must only pay up to the policy limits. The policy limits are usually noted in the declarations page of your policy. In Texas, minimum auto liability policy limits were recently raised in 2008 to $25,000 per person, $50,000 per accident, and $25,000 property damage per accident.