How Insurance Claims Work After an Accident in Texas

Texas uses an at-fault (tort) insurance system. The driver who caused the accident is financially responsible for the other party's damages — medical bills, lost wages, vehicle repair, and pain and suffering. This is different from no-fault states, where each driver's own insurance pays regardless of who caused the crash.

As the injured party in Texas, you have three paths to compensation. You can file a third-party claim directly against the at-fault driver's liability insurance. You can file a first-party claim with your own insurer under your collision, PIP, or uninsured motorist coverage. Or you can file a personal injury lawsuit in court. Most claims start with the insurance process and escalate to a lawsuit only if settlement negotiations fail.

Texas's proportionate responsibility rule (Tex. Civ. Prac. & Rem. Code § 33.001) directly affects insurance claims. If you are partially at fault, your compensation is reduced by your fault percentage. If you are 51% or more at fault, you recover nothing. Insurance adjusters know this and will argue aggressively that you share blame to reduce their payout.

Texas law requires all drivers to carry minimum liability insurance. Under Tex. Ins. Code § 601.072, the minimums are 30/60/25: $30,000 bodily injury per person, $60,000 bodily injury per accident, and $25,000 property damage per accident. Driving without insurance is a misdemeanor, carrying fines of $175 to $350 for a first offense, plus a $250 annual surcharge for two years.

These minimums are dangerously low for a state with Texas's crash volume and medical costs. A serious car accident in Houston or Dallas can produce medical bills exceeding $30,000 in the first few days of treatment. If the at-fault driver carries only the minimum and your medical bills are $120,000, you face a $90,000 gap. This is where your own underinsured motorist coverage becomes critical — if you have it.

Texas also requires insurers to offer personal injury protection (PIP) coverage under Tex. Ins. Code § 1952.152. PIP covers medical expenses and lost income up to the policy limit regardless of who caused the accident. You can reject PIP in writing. While optional, PIP can bridge the gap while you wait for the at-fault driver's insurer to process your claim — a process that can take months.

Unlike many states, Texas does not require drivers to carry uninsured/underinsured motorist (UM/UIM) coverage. However, under Tex. Ins. Code § 1952.101, insurers must offer UM/UIM coverage with every auto policy. You can reject it, but the rejection must be in writing. If you did not sign a written rejection, UM/UIM coverage may be included in your policy by default at the minimum liability limits.

UM coverage protects you when you are hit by a driver who has no insurance, a hit-and-run driver who cannot be identified, or a driver whose insurer has become insolvent. UIM coverage kicks in when the at-fault driver's policy limits are insufficient to cover your damages. Given that the Texas minimum is only $30,000 per person, even a moderately serious injury can exhaust the at-fault driver's coverage.

An estimated 14.1% of Texas drivers are uninsured, according to 2023 Insurance Research Council data — roughly 1 in 7 drivers on the road. In Houston, with its 66,236 crashes in 2024, the odds of being hit by an uninsured driver are significant. Without UM coverage, your options are limited to suing the uninsured driver personally — and collecting a judgment against someone who cannot afford insurance is often impossible. Check your policy now to confirm you carry UM/UIM coverage.

Step 1: At the scene, call 911 if there are injuries or significant property damage. Exchange insurance and contact information with all drivers. Photograph damage, the scene, license plates, and road conditions from multiple angles. Get contact information for witnesses. Do not admit fault or apologize. Step 2: Report the accident. Under Texas Transportation Code § 550.026, if the accident caused injury, death, or property damage of $1,000 or more, a report must be filed with TxDOT within 10 days if law enforcement did not investigate the scene.

Step 3: Notify your own insurance company promptly. Most Texas policies require timely notification — check your policy for the specific deadline. Provide basic facts only: date, time, location, vehicles involved, and the police report number. Do not speculate about fault or injuries. Step 4: File your claim — either a first-party claim with your own insurer or a third-party claim against the at-fault driver's insurer. You will need insurance details, the other driver's information, the police report, and documentation of damages.

Step 5: The insurance adjuster investigates. Step 6: The adjuster calculates compensation and makes a settlement offer. Under the Texas Prompt Payment of Claims Act (Tex. Ins. Code § 542.056), the insurer must accept or reject a claim within 15 business days of receiving all required information. If accepted, payment must be made within 5 business days. If the insurer violates these timelines, you may be entitled to 18% annual interest plus attorney's fees. Step 7: You can accept, negotiate, or reject the offer and file a lawsuit.

The insurance adjuster works for the insurance company, not for you. Their job is to minimize what the company pays. They are trained professionals who handle hundreds of Texas claims while this is likely your first accident.

Share: your name and contact information, the date and location of the accident, that you were involved in the accident, and that you are receiving medical treatment. Direct the adjuster to your attorney if you have one. Never say: 'I'm fine' or 'I feel okay' (soft tissue injuries and concussions often worsen over 24-72 hours), 'I'm sorry' or anything that could be interpreted as admitting fault, speculation about what happened, or details about pre-existing conditions.

Do not give a recorded statement to the other driver's insurance company. You have no legal obligation to do so in Texas. A recorded statement gives the adjuster a transcript to mine for inconsistencies, admissions, and statements that can be used to assign you fault under Texas's proportionate responsibility system. If the adjuster presses for a recorded statement, say: 'I decline to give a recorded statement at this time.' End the conversation if they persist.

Reject a settlement offer if: you have not reached maximum medical improvement (MMI), the offer does not cover all medical expenses including anticipated future treatment, the offer ignores lost wages and reduced earning capacity, or the offer does not include fair compensation for pain and suffering. First offers from Texas insurance companies are typically well below what the claim is worth.

An offer may be reasonable if: you have reached MMI and know your total medical costs, the offer covers all economic and non-economic damages, the at-fault driver's policy limits have been reached (making further recovery from that policy impossible), or further litigation costs would exceed the likely additional recovery.

Once you accept a settlement and sign a release, the claim is permanently closed. You cannot reopen it if your condition worsens, you need additional surgery, or you discover new injuries. Settling before reaching MMI is risky — especially in Texas, where medical costs are high and insurance minimums are low. If the insurance company is pushing you to settle quickly, that urgency usually means the claim is worth more than they are offering.

If your accident involved a Texas government entity — a TxDOT vehicle, a Metro bus in Houston, a VIA bus in San Antonio, a DART bus in Dallas, or a city-maintained road in dangerous condition — you face different rules under the Texas Tort Claims Act (Tex. Civ. Prac. & Rem. Code Chapter 101).

You must provide formal written notice within 6 months of the incident under § 101.101. Some municipalities impose shorter deadlines: Houston requires 90 days. The notice must include the time, place, and nature of the claim. Failing to provide timely notice can bar your claim entirely. After providing notice, the government unit has time to investigate and respond before you can file a lawsuit.

Damages against Texas government entities are capped at $250,000 per person and $500,000 per occurrence for bodily injury, and $100,000 for property damage under § 101.023. Government liability is limited to three categories: use of motor vehicles, use of tangible personal or real property, and premises defects. If your accident involved any government entity or employee, consult an attorney immediately — notice deadlines as short as 90 days leave no room for delay.

Texas's statute of limitations for personal injury claims is 2 years from the date of injury (Tex. Civ. Prac. & Rem. Code § 16.003). For wrongful death, the deadline is also 2 years from the date of death. Government tort claim notices must be filed within 6 months (or as short as 90 days for some cities). Under the Prompt Payment of Claims Act, insurers must accept or reject claims within 15 business days and pay within 5 business days of acceptance.

Insurance companies are aware of these deadlines and may use delay tactics to weaken your position. As the 2-year statute of limitations approaches, the insurer knows your leverage decreases. Starting the claims process early and consulting an attorney well before any deadline preserves your negotiating position and gives you time to build the strongest possible case.

Insurance company pressuring you to settle? Not sure if the offer is fair? Take our free 2-minute assessment. You will answer a few questions about your accident and injuries, and we will provide a personalized report that includes what your Texas insurance claim may actually be worth, how the at-fault system and proportionate responsibility rule affect your recovery, and whether connecting with a Houston, San Antonio, or Dallas-Fort Worth personal injury attorney makes sense for your situation.

The insurance company has a team of adjusters and attorneys working to minimize your payout. Understanding your rights and the value of your claim is the first step toward a fair outcome. Free, confidential, and takes less time than being on hold with an insurance company.