Auto Insurance claims in Texas are governed by limitations on the length of time an injured party can wait to file a claim and the amount an injured party can recover. These limitations are set by the state legislature.
Economic v. Noneconomic Damages Defined
Texas law distinguishes between economic and noneconomic damages. Economic damages are those that are based on an expense incurred by the injured party as a result of the accident. Examples include lost wages and medical expenses. Noneconomic damages, in contrast, are those damages that are awarded to compensate the injured party for an intangible aspect of his injury, such as pain and suffering.
Guidelines for Calculating Amounts
In Texas, the amount of economic damages is calculated separately from noneconomic damages. This means that the amounts of compensation awarded for the two groups is calculated and given separately. When complying with this statute, many courts will break down the compensation amounts used to calculate the separate damage awards.
Punitive Damage Statutes
Punitive damages are awards of money intended to punish the wrongdoing party. Each state calculates, and even might prohibit, punitive damage awards differently. In Texas, the amounts of punitive damages that can be awarded are set by statute. This statute limits an award of punitive damages to $200,000, or double the amount of economic damages and an amount for noneconomic damages as long as the total calculation does not exceed $750,000.
However, note that these statutes are inapplicable in situations in which the responsible party committed a felony in his behavior. Felonies include: murder, aggravated kidnapping or assault and fraud. In these instances, there are no damage limits.
Subject to Review
All damages awarded by a court are subject to appellate court review. This means that if the higher, appellate court finds the award excessive or unsubstantiated, it may remand the amount of damages back to the original court for review and alteration.
Time Limits for Claims
Texas law requires an injured party to file his claim within two years of the date of injury. If the injury was not immediately identified, the injured party must file his claim within two years of discovering the injury. Failure to file a claim within these two years could result in it being denied by the insurance company or dismissed by court.
Getting Legal Help
If you have been involved in an auto accident in Texas, consider obtaining legal assistance. A lawyer will review the facts of your case and advise you about the best way to proceed to obtain compensation for your injuries.
