Am I Covered in a Company Car?

Question: I was involved in a car accident while driving a company vehicle. I was injured and want to know if I am covered under the company’s insurance?

Answer: In Texas, liability insurance is mandatory for all vehicles including company vehicles. In fact, there are higher insurance requirement for vehicles classified as commercial vehicles. However, whether you are covered depends on the what coverage is provided for the vehicle by the company. Just like personal vehicles, your company can provide for Personal Injury Protection (PIP) and/or Uninsured/Underinsured Motorist Coverage.

But your coverage may also depend upon who is at fault in the accident. If you are liable for causing the accident, then the insurance policy may not provide you much coverage for your injuries. You would probably be limited only to the benefits of any “no-fault” coverage, such as PIP. But if your company carried workers compensation coverage, then you may be able to get benefits for medical expenses and lost wages if you were in the course and scope of your employment at the time of the accident.

If you were not at fault in the accident, then not only can you make a claim for worker’s compensation benefits, you can also make a claim under the other driver’s policy as well as the policy covering the company vehicle. Of course, the worker’s compensation carrier would be entitled to reimbursement should you get some sort of settlement. But many times, the reimbursement amount can be negotiated by your attorney.

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