No, Texas is not a no-fault state.
Texas operates under an at-fault or tort-based system for auto insurance. That means the driver who caused the accident is legally and financially responsible for any damages—medical bills, property damage, lost wages, pain and suffering, and more. Unlike no-fault states, where drivers typically turn to their own insurance first, in Texas, victims must prove that another party was at fault to recover compensation.
This key distinction affects how insurance claims are handled, what coverage drivers need, and how legal cases are built following a crash.
What Does It Mean to Be a “No-Fault” State?
How No-Fault Systems Work
In a no-fault state, each driver’s Personal Injury Protection (PIP) coverage pays for their own medical treatment and related losses—no matter who caused the crash. These systems are designed to:
- Reduce the number of small personal injury lawsuits
- Speed up insurance claims and payouts
- Limit disputes over fault in minor accidents
While this model offers efficiency, it also limits a driver’s ability to sue unless their injuries meet a certain severity threshold.
Why Texas Is Not No-Fault
Texas does not follow this model. Instead, if you’re injured in a Texas car accident, your options include:
- Filing a claim against the at-fault driver’s insurance
- Filing a claim with your own insurance, which may seek reimbursement later
- Filing a personal injury lawsuit against the responsible party
This system puts more emphasis on determining fault, which can make claims more complex—but also allows more freedom to pursue full compensation when injuries are serious.
Texas Auto Insurance Laws: Fault vs. No-Fault
The At-Fault System Explained
Under Texas law, the person who caused the accident is responsible for covering damages. Insurance companies will investigate who was at fault, often through:
- Police reports
- Witness statements
- Vehicle damage assessments
- Surveillance or traffic camera footage
Until fault is determined, insurance companies may delay payouts—making legal help a valuable asset during the claims process.
Overview of Auto Insurance Coverage in Texas
Minimum Required Liability Coverage (30/60/25 Rule)
Texas requires every driver to carry at least:
- $30,000 for bodily injury per person
- $60,000 total per accident for bodily injury
- $25,000 for property damage
This minimum—commonly called 30/60/25—helps cover others’ expenses if you’re at fault in an accident. However, these amounts are often not enough for serious accidents, so many drivers opt for higher coverage limits.
Optional Coverages That Offer Extra Protection
- Uninsured/Underinsured Motorist (UM/UIM): Covers you if the at-fault driver has no or too little insurance.
- Personal Injury Protection (PIP): Pays for your own medical bills regardless of fault (up to a limit).
- Medical Payments (MedPay): Similar to PIP, but with stricter limitations.
- Collision and Comprehensive: Covers damage to your own vehicle—whether from a crash, theft, or natural disaster.
Determining Fault in Texas Car Accidents
Who Decides Who’s Responsible?
Establishing fault in Texas involves gathering and reviewing various types of evidence:
- Official police reports
- Statements from eyewitnesses
- Photographs and vehicle damage
- Scene reconstructions or expert evaluations
- Camera footage (if available)
Disputes are common. Insurers may not agree on fault, or they may try to shift blame to minimize payouts—this is where legal advocacy can make a real difference.
Texas’ Modified Comparative Fault Rule
Understanding the 51% Bar Rule
Texas uses a modified comparative negligence system. Here’s how it works:
- If you’re less than 51% at fault, you can still recover compensation.
- If you’re 51% or more at fault, you cannot recover anything.
- Your compensation is reduced by your percentage of fault.
Example: If you were awarded $100,000 in damages but were found 30% at fault, you would receive $70,000.
This rule encourages accountability but also adds complexity to accident claims—especially when fault is shared.
Passenger Claims in Texas Car Accidents
Can Passengers File Injury Claims?
Absolutely. Passengers injured in Texas car accidents have the right to pursue compensation from:
- The at-fault driver (even if it was the driver of the vehicle they were in)
- A third-party driver involved in the crash
However, if a passenger contributed to their own injuries—such as by not wearing a seatbelt—their compensation could be reduced under the same comparative fault rules.
Handling Uninsured and Underinsured Drivers in Texas
What Happens If the Other Driver Has No Insurance?
Despite state law requiring insurance, some drivers still operate without coverage. If you’re injured by an uninsured or underinsured driver, your options include:
- Filing a claim under your UM/UIM coverage (if you have it)
- Pursuing a lawsuit directly against the driver (though recovery may be limited if they lack assets)
Having UM/UIM coverage can be a financial lifesaver in these situations. It’s optional—but strongly recommended.
Types of Damages You Can Recover in a Texas Car Accident
1. Economic Damages
These are quantifiable losses, such as:
- Past and future medical expenses
- Lost income or reduced earning capacity
- Vehicle repair or replacement
2. Non-Economic Damages
These address more subjective impacts, like:
- Pain and suffering
- Mental anguish
- Loss of enjoyment of life
- Loss of consortium (impact on close relationships)
3. Punitive Damages
In rare cases of gross negligence (e.g., DUI or road rage), Texas courts may award punitive damages to punish the wrongdoer and deter future misconduct.
Navigating Insurance Claims and Negotiations
What to Do After a Texas Car Accident
- Report the accident to your insurer as soon as possible
- Seek medical attention—even for seemingly minor injuries
- Take photos of the vehicles, injuries, and scene
- Collect witness contact info and request the police report
- Keep a file of all receipts, bills, and communications
Common Claim Disputes
- Disagreements over who was at fault
- Disputes about the extent of injuries or medical treatment
- Insurance companies offering lowball settlements
These situations often require strong legal representation to ensure fair compensation.
How Being Found at Fault Affects Your Insurance in Texas
The Long-Term Consequences
Being found at fault in a Texas accident can have serious consequences:
- Higher insurance premiums
- Loss of policy discounts
- Policy non-renewal or cancellation
A single crash could cost you thousands more in premiums over time—another reason why fault matters so much in this state.
Disputing Fault and Settlement Offers in Texas
Don’t Settle for Less Than You Deserve
If you’re dissatisfied with the insurance company’s fault determination or settlement offer, you have the right to:
- File an internal appeal
- Submit a complaint to the Texas Department of Insurance
- Pursue legal action with an attorney
An experienced personal injury lawyer can negotiate with insurers and, if needed, take your case to court.
Statute of Limitations for Car Accident Claims in Texas
Time matters.
In Texas, you generally have two years from the date of the accident to file a lawsuit for personal injury or property damage. Missing this window means you could lose your right to recover compensation—no matter how strong your case may be.
The Role of an Attorney in a Texas Car Accident Claim
Why Legal Representation Makes a Difference
Car accident cases can get complicated quickly—especially when:
- Fault is unclear
- Injuries are serious
- Multiple drivers are involved
- Insurance companies refuse to offer fair settlements
An attorney from Carew Garcia Bohuslav Law can:
- Investigate the accident and build a strong claim
- Handle all communications with insurance adjusters
- Fight for maximum compensation—through settlement or trial
Take the Next Step
If you’ve been involved in a car accident in Texas, don’t try to figure it all out alone. From navigating fault to fighting for the compensation you’re owed, Carew Garcia Bohuslav Law is here to stand by your side.
We understand the challenges you’re facing, and we’re committed to delivering results with compassion, clarity, and strength. Our team has extensive experience handling Texas car accident claims—and we know what it takes to win. Contact us today and let us take the burden off your shoulders so you can focus on healing.