Winslow Arizona, Car Insurance Writer
@winslow_arizona
No, Texas is not a no-fault state for auto insurance. Texas is an “at-fault” or “tort” state, which means the person who is at fault for a car accident is responsible for paying for other people’s injuries and property damage resulting from the accident. Additionally, unlike in no-fault states, drivers in Texas can file lawsuits to seek compensation for even basic medical expenses after an accident.
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In Texas, PIP is not required.
Key Things to Know About Insurance in Texas
- When an accident occurs, the insurance company for each driver who was involved will assign an adjuster to determine who was at fault. To collect payment for their losses, victims must file a claim with the at-fault driver’s insurance company.
- Depending on how long fault takes to be determined, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses, such as collision and comprehensive Their insurer can then recoup the cost from the at-fault driver’s insurer if the policyholder is not determined to be at fault.
- Texas uses a modified comparative (51%) negligence system, meaning drivers can't collect any damages from the other parties if they were 51% or more at fault. If they were less than 51% at fault, drivers can collect damages minus the percentage that they were at fault. So if they were 30% at fault, they can recover 70% of what they spent on damages after the crash.
- Being an “at-fault” / “tort” state helps keep Texas’s insurance costs relatively low, compared to no-fault states.
- Texas requires all drivers to carry liability insurance, a type of insurance that pays for others’ expenses after you cause an accident, such as damage to others’ vehicles and their medical expenses.
In addition to Texas’s minimum coverage requirements, you may want to purchase types of coverage that will pay for your own expenses after an accident. For example, collision and comprehensive insurance will cover damage to your vehicle, regardless of fault.
To learn more, check out WalletHub’s guides to no-fault insurance and the cheapest car insurance in Texas.
People also ask
What should you do if your car is totaled and you're not at fault?
If your car is totaled and you’re not at fault, you should file a claim with the at-fault driver’s insurance company and report the accident to your own insurer as well. The other driver’s property damage liability coverage will reimburse you for your car’s actual cash value up to their policy limits. Actual cash value, or ACV, is the amount the car was worth immediately before the accident.
Claim Options if Your Car Is Totaled but You're Not At-Fault
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read full answerHow long does it take for car insurance to go down?
It takes 3 to 5 years for car insurance to go down after an at-fault accident in most cases. Three years is a common penalty period for property damage claims. Insurance companies penalize drivers longer for accidents causing serious bodily harm or resulting from reckless or intoxicated driving. Premium increases vary widely by state and insurer, but the average increase is 41% after a single claim of $2,000 or more.
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read full answerWhat happens if I'm at fault in a car accident?
If you’re at fault in a car accident, your liability insurance pays for the other driver’s car repairs and will likely cover any doctor’s bills if they’re injured. No-fault states are the exception, as they require each driver to use their own insurance to pay for medical expenses after an accident. But regardless of the state, fault always dictates whose liability insurance pays for property damage.
Your liability insurance never covers your own expenses, so you...
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