Who Pays After a Houston Car Accident? Texas’s At-Fault Rules, Explained

People who move to Houston from Florida, or who have only heard about car insurance from TV ads, often expect their own insurer to pay their medical bills right after a crash. In Texas it usually works the other way around. Knowing which policy pays, and in what order, helps you avoid leaving coverage on the table.

What does “at-fault state” mean after a Houston car accident?

It means the person who caused the crash is legally responsible for the injuries and damage it caused, and that driver’s liability insurance is the main source of payment. Texas does not have the no-fault system that Florida and some other states use, where each driver’s own policy pays early medical bills no matter who caused the crash. In Texas you make a claim against the at-fault driver, and if the claim does not resolve, you can file a lawsuit within the deadline — generally two years from the crash (Tex. Civ. Prac. & Rem. Code § 16.003).

How much insurance does a Texas driver have to carry?

At least $30,000 for each injured person, $60,000 for all injuries in one crash, and $25,000 for property damage. These are minimums. Many drivers carry exactly that, and some carry nothing at all. When the injury involves surgery, a hospital stay or months away from work, $30,000 can run out quickly. That is why the next two coverages — both on your own policy — matter so much.

Do you have PIP in Texas, and what does it pay?

You probably do, unless you rejected it in writing. Texas insurers must offer personal injury protection with every auto policy, with a minimum of $2,500, and it is part of the policy unless the policyholder signed a written rejection. PIP pays medical bills and a share of lost income for you and your passengers regardless of who caused the crash. It is often the fastest money available after a crash, and using it does not mean you are admitting fault.

What if the other driver has no insurance, or not enough?

Your uninsured/underinsured motorist (UM/UIM) coverage can step in, again unless you rejected it in writing. UM coverage applies when the at-fault driver has no insurance or, in some situations, cannot be identified after a hit-and-run. UIM coverage applies when the at-fault driver’s policy is too small to cover your losses. Because Texas’s liability minimums are low, UIM is often what makes a serious-injury claim whole.

Can the other driver’s insurer blame you to pay less?

Yes, and in Texas it can make a large difference. Under the state’s proportionate-responsibility rule, your recovery is reduced by your percentage of fault, and you recover nothing if you are found more than 50% responsible (Tex. Civ. Prac. & Rem. Code § 33.001). Adjusters know this, which is why a recorded statement is risky. You can report the basic facts of the crash without giving the other driver’s insurer a recorded statement.

What should you gather to protect your claim?

Your policy’s declarations page, the crash report number, photos, medical records and the other driver’s insurance information. The declarations page shows whether you have PIP, MedPay and UM/UIM and in what amounts. The Texas Peace Officer’s Crash Report (Form CR-3) can be requested through the Texas Department of Transportation once it is filed. Keep every medical bill and record: in Texas, recovery for medical expenses is limited to the amounts actually paid or incurred (Tex. Civ. Prac. & Rem. Code § 41.0105).

When should you talk to a Houston car accident lawyer?

Before you sign anything or give a recorded statement, and ideally in the first few weeks. A lawyer can identify every coverage that applies, including policies that cover other people in your household, deal with the adjusters, and preserve evidence such as nearby business video before it is recorded over. Learn more on our Houston car accident lawyer page, or read how fault percentages work in our article on Texas’s 51% rule.