Texas Car Accident Laws and Regulations
Texas law requires the person responsible for a car accident to pay for injuries and damage.
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Written bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated September 19, 2024
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Texas is an “at-fault” state when it comes to car accidents, meaning the driver determined to have caused the wreck is financially responsible for all damages — both injuries and property damage. State law requires all drivers involved in a car accident to immediately stop their vehicles and provide their contact and insurance information, making it easier for both drivers to file an auto insurance claim.[1]
In Texas, you have a legal right to be treated fairly by your auto insurance company. In most cases, insurance companies have 15 days after receiving your information to approve or deny your claim.[2]
Here’s what you need to know about Texas car accident laws and regulations.
How to report a car accident in Texas
The Texas Department of Transportation reports more than 250,000 people were injured in motor vehicle crashes statewide in 2023. And many thousands more were involved in accidents where no one was hurt.
If you’re in a car accident in Texas, here’s how to handle it:
Immediately stop your car and check for injuries. If someone is hurt, care for them.
Move your vehicle off the roadway as much as safely possible.
Exchange information, including name, contact details, driver’s license information, license plate numbers, vehicle identification numbers, and insurance policy information.
Note the location of the crash and collect contact information for any witnesses.
You’re not always required to notify the police to report the wreck. But you must call the police if one of the following applies to your wreck:
Someone was injured or killed.
The cars can’t be moved.
One of the drivers is intoxicated.
One of the drivers doesn’t have a license or insurance.
One of the drivers leaves the scene of the accident.
If you call the police, an officer will respond to investigate the accident. They’ll file a formal report of the wreck if someone was injured or if property damage exceeds $1,000. The officer may also file criminal charges against one or both drivers.
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When to file a car insurance claim in Texas
If you’re involved in a car accident in Texas, it’s a good idea to notify your insurance company as soon as possible — even if you don’t believe you’re at fault.[3] Explain the circumstances of the accident, and send pictures of the scene and any damages if possible. If a police officer investigated the crash, send your insurance company a copy of the accident report, as well.
Depending on your policy, your insurance company may handle things from there. If you’re not at fault in the accident, the other driver’s insurance company will be responsible for paying for injuries and damages — and your insurance company will ensure that this is taken care of.
But you may be responsible for filing a claim with the other driver’s insurance company yourself. If the other driver’s insurance company accepts that its customer was at fault in the accident, you may get a check to cover your damages and repair your car.
If the other driver’s insurance company doesn’t believe they were at fault or otherwise refuses to pay, you may need to file a claim with your insurance company. You’ll need to have collision coverage in this scenario. Collision insurance pays to repair or replace your car if you’re at fault in an accident.
Most insurance companies have a deadline after an accident for filing a claim. Make sure you meet this deadline to be covered. Insurance companies are required to confirm they’ve received your claim within 15 days. Your insurance company can then request information from you, including medical reports. The insurance company may also send out an adjuster to examine your vehicle and estimate the cost of repairs.
In most cases, your insurance company must approve or deny your claim within 15 days of receiving all the information it needs. But your insurer may take up to 45 days to make a decision if the company notifies you in writing of the reason for the delay. After approving a claim, your insurance company has five business days to send you a check.
Texas car accident statute of limitations
A statute of limitations is a law that outlines how soon after an accident you must bring a lawsuit seeking damages. The Texas car accident statute of limitations is two years.
After two years, you’re no longer able to bring a civil lawsuit claiming bodily injury after an accident. Similarly, after two years, someone can no longer sue you for bodily injury in an accident you caused.
Insurance requirements in Texas
Texas legally requires drivers to show proof that they can be financially responsible for accidents they cause.[4] In most cases, this is done with liability insurance. Texas law requires that liability insurance policies include:
$30,000 per person for bodily injury
$60,000 per accident for bodily injury
$25,000 per accident for property damage
If you’re in a car collision in Texas and don’t have proper insurance, you can be fined up to $350. This fine can be higher if you’ve been ticketed for driving without insurance in the past.
When you purchase a new policy, Texas also requires insurers to offer drivers personal injury protection (PIP) and uninsured/underinsured motorist coverage — also known as UM/UIM insurance. To opt out, you must provide a refusal of coverage in writing.
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How to Get a Texas Drivers License
Who pays for a car accident in Texas?
In Texas, the driver at fault in the accident is responsible for paying for the injuries and property damage it causes. In most cases, the at-fault driver’s liability insurance will cover these costs. Your insurance company may sue the other driver to recover some of this money.
But in some wrecks, the driver at fault won’t have enough insurance coverage to pay for all the injuries and damages, or not have insurance at all. In this case, the driver not at fault will need to file a claim with their own insurance company.
While UM/UIM coverage isn’t a requirement under Texas law, having uninsured coverage on your policy is still a good idea. It provides extra protection if you’re hit by a driver who doesn’t have insurance or enough insurance to cover injuries and damages. It also pays if you’re in a hit-and-run accident and the at-fault driver can’t be found.
Comparative negligence rule in Texas
Comparative negligence comes into play if the car accident is partially your fault and partially the other driver’s fault. In Texas, you can receive damages from the driver even if you’re partially at fault in the accident. But you can’t receive any damages if you’re 50% at fault or more.
A legal court may be necessary to determine the percentage of fault that should be attributed to each driver. But an independent third party may also be used. Your insurance company will likely have policies that dictate how fault will be determined after an accident.
Who’s at fault in a car accident in Texas?
Generally, the driver who caused the car accident is at fault — and responsible for paying for the damage caused and medical bills of the injured party. But some cases are more clear-cut than others.
For example, a driver texting on their phone who rear-ends the car in front of them will nearly always be at fault. A driver who runs a red light and T-bones a car passing through a green light will usually be at fault, as well.
Other accidents are trickier. Say a driver is turning right from a stop sign onto a larger, busier road. A speeding car hits the driver as he pulls out. Because the car was speeding, that driver may be found partially at fault.
Proving fault in a car accident in Texas
Since Texas is an at-fault state, it’s important to determine who caused a traffic accident and who’s responsible for paying. Depending on the circumstances of the accident, proving fault may be a simple, quick process or a long, drawn-out one.
Insurance companies typically begin the process by assigning claims adjusters or other accident investigators to gather facts and piece together who’s at fault. They’ll review any police reports and witness statements and examine the damage to both vehicles. They may also interview you or witnesses. In serious crashes, the insurance company may hire accident reconstructionists to outline how the crash occurred.
With that information, your insurance company will determine fault in the accident. The insurer will also total damages and come up with a proposed settlement. Any money you receive will depend on your insurance policy, who’s at fault in the accident, and the extent of injuries or damage in the wreck.
If you disagree with the insurance company’s determination or don’t feel that you’re getting enough compensation, you may choose to hire an attorney and sue the insurance company or other driver. The case may also go to court if the insurance companies involved disagree about who’s at fault.
In court, a judge or jury may determine who’s at fault in the accident based on all the evidence presented at trial.
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Should you hire an attorney after a car accident in Texas?
Texas car accident laws can be complex. If you’re in a serious accident, you may want to hire an attorney to help you navigate the process. This is especially true if someone’s injured. An attorney can help you make sure your insurance company treats you fairly and compensates you adequately for the pain and damages you’ve suffered.
You may also choose to contact the Texas Department of Insurance’s Consumer Protection Division if you feel your insurer isn’t treating you fairly. The state of Texas has a legal bill of rights for personal auto insurance customers, which includes laws governing how insurers must handle claims.
You can call the Texas Department of Insurance’s “Help Line” for free to get advice on how to move forward with a complaint.
Texas car accident laws FAQS
If you still have questions about car accident laws in Texas, check out the additional information below.
What are my rights in a car accident in Texas?
After an accident, you have the right to file a claim, and your insurer must take appropriate steps to process your claim within a certain time period. You also have the right to disagree with your insurer and sue the company or the other driver.
How is fault determined in a car accident in Texas?
Your insurance company typically has policies that outline how fault will be determined after a car accident in Texas. Generally, the driver who caused the accident is at fault. But depending on the circumstances, fault may be determined in court or by a third party.
Who pays for a car accident in Texas?
Texas is an at-fault state, so the driver who causes the auto accident is financially responsible for damages, including injuries and property damage. But if you’re involved in a hit-and-run car crash or the at-fault party doesn’t have enough liability coverage or has low policy limits, UM/UIM coverage or personal injury protection (PIP) can help you recover some of the losses.
What happens after a car accident that’s not your fault in Texas?
After a wreck that’s not your fault, ideally you’ll file a car accident claim and the other driver’s insurance company will cover all damages, including medical expenses. But some accidents can be tricky, requiring your insurance company to sue the other driver’s insurance. Or you may choose to file a civil lawsuit against the at-fault driver.
How does a car accident affect my rates?
If you’re the at-fault driver in a car accident, it’s likely your car insurance rates will go up. Increases vary by insurer and the severity of the accident. For example, a minor fender bender isn’t likely to increase your rates as much as a serious crash caused by a DUI.
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Sources
- Texas State Legislature. "Texas Transportation Code."
- Texas Department of Insurance. "Consumer Bill of Rights - Superseded by Commissioner’s Order No. 12-0862."
- Texas Department of Insurance. "Automobile insurance guide."
- Mansfield Texas. "Failure to Maintain Financial Responsibility."
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Sarah Archambault
Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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