Injury claims and releases

What TDI says about injury settlements

TDI’s auto insurance guide says that if you were injured in an accident caused by another driver, the other driver’s insurance company will offer you a settlement to cover medical bills related to the accident, and will ask you to sign a release promising that you will not file more claims for the accident. TDI’s advice is direct: before you sign the release, talk to your doctor about any future medical treatment you might need, and use that information to decide whether the offer is fair.

The reason is timing. Some injuries are not fully understood in the first days or weeks. Physical therapy, follow-up imaging, or specialist visits may be recommended later. Once a release is signed, there is usually no going back to ask for more for the same accident.

Coverages that may pay first

TDI describes several coverages that can pay medical bills regardless of how the fault question is resolved:

• Personal injury protection (PIP) pays your and your passengers’ medical bills and also things like lost wages and other nonmedical costs. TDI says all Texas auto policies include PIP unless you rejected it in writing.
• Medical payments coverage pays your and your passengers’ medical bills, and TDI says it also pays if you are hurt while riding in someone else’s car or while walking or biking.
• Uninsured/underinsured motorist coverage pays if the driver who hit you had no insurance or not enough, and in hit-and-run accidents. TDI notes it must be offered and can be rejected only in writing.

TDI adds that if the other driver’s limits are not enough to cover your medical bills, you can file with your auto company or your health insurance company, and the auto company will use PIP, medical payments, or uninsured/underinsured motorist coverage to pay the difference. A deductible may apply. Check your declarations page to see which of these you have.

Liability minimums and why they matter

TDI explains that Texas requires liability coverage of at least $30,000 per person for injuries, up to $60,000 per accident, and $25,000 for property damage, often written as 30/60/25. TDI warns that minimum limits may be too low if a driver causes a multi-vehicle accident. If the at-fault driver carried only the minimum and several people were hurt, the available money may not cover everyone’s bills, which is where your own coverages matter.

Hospital and EMS liens can affect a release

Texas Property Code Chapter 55 gives hospitals, and in some counties emergency medical services providers, a lien on an injured person’s claim against a negligent party when the statute’s conditions are met. Section 55.007 says a release of a claim to which such a lien may attach is not valid unless the provider’s charges were paid in full, or paid to the extent the statute describes, or the provider is a party to the release. That is one reason insurers and lawyers ask about hospital bills before finalizing a settlement. The hospital and EMS liens page explains when a lien attaches and how it is limited.

Questions to answer before signing

• Has my doctor said whether I need further treatment, and roughly what kind?
• Which bills have been paid, by whom, and which are still outstanding?
• Has a hospital or EMS provider filed a lien, or sent a notice of one?
• Does my health plan, PIP, or medical payments coverage expect to be repaid from a settlement?
• Does the release cover only this claim and these parties, or more?
• Am I inside the time limits on the deadlines page?

Records to keep

Keep medical bills, explanation-of-benefits statements, pharmacy receipts, records of missed work, mileage to appointments, and a simple dated note of symptoms and limits on daily activities. Keep them yourself. The evidence page explains why this site does not collect them.

Unsolicited contact

Texas Penal Code § 38.12 restricts written solicitations about personal-injury claims by lawyers and certain health care providers before the 31st day after an accident, among other limits. See calls and letters after a crash. TDI’s Consumer Help Line is 800-252-3439 for insurance questions.