Is Texas a No-Fault State?

Every state has unique insurance requirements for its motor vehicle drivers. Before you can lawfully operate a vehicle in the State of Texas, you must purchase adequate auto insurance. If two drivers get into a car accident in Texas, the injured party will seek benefits from the at-fault driver’s insurance company. This is a fault-based insurance system. This arrangement means that Texas is not a no-fault state.

A no-fault state is one in which a driver involved in a car accident does not have to determine or prove fault to receive insurance benefits. Instead of filing an insurance claim against the at-fault party, injured drivers in a no-fault state will seek benefits from their own insurance providers, regardless of fault. A no-fault state uses first-party insurance claims to reimburse victims for their medical bills and vehicle repairs without requiring proof of fault. In a no-fault state, only the most serious injuries will give a victim the right to hold a negligent or reckless driver responsible. In Texas, however, this is not the case.

Texas is a fault-based insurance state – also called a tort insurance state. A tort is a wrongful act or breach of someone’s rights. Texas’s insurance law means that after an accident, the at-fault driver will be financially responsible for damages. Texas’s fault law says that if one driver is guilty of a tort that caused the car accident, such as drowsy or distracted driving, that driver will have to pay for an injured victim’s related losses. An at-fault driver will pay for these damages using his or her auto insurance coverage.

In Texas, it is a legal requirement for a driver to show proof that he or she can pay for car accidents. Proof of financial responsibility comes in the form of mandatory auto insurance. The minimum requirements for car insurance in Texas are $30,000 in injury coverage per person, $60,000 per accident and $25,000 in property damage liability. Several other optional types of insurance coverage are also available, including collision and comprehensive coverage.

After a car accident in Texas, remain calm and call 911 to report the accident. It is mandatory to report accidents immediately to the police in Texas if they cause personal injuries, fatal injuries or more than $1,000 in property damages. Request a crash report from the police officer. This can provide evidence for the insurance process. Write down the at-fault driver’s full name and contact information, as well as the name of his or her insurance company. Receive immediate medical care for your injuries. Then, call the at-fault driver’s insurance company to report the wreck.

File a claim to damages with the at-fault driver’s car insurance provider. Submit a comprehensive list of all expenses related to the collision, including emergency medical care, hospital stays, treatments, vehicle repairs, a rental car, travel expenses, lost wages, legal fees and out-of-pocket costs. Your lawyer may also recommend seeking damages for pain and suffering during the insurance process. Submit your claim and wait to hear back from the at-fault driver’s insurance company. In some cases, your own car insurance provider may cover your damages upfront and then request reimbursement from the other party on your behalf.

Living in a fault-based insurance state like Texas allows you to seek full compensation for your damages by holding the at-fault driver liable. A fault claim generally results in greater financial compensation than a no-fault claim. The downside of living in a fault state, however, is that you will have to prove the other driver’s liability before you receive compensation. This can be difficult if the other driver is refuting fault or the insurance company is refusing to cover your damages. If you encounter these challenges, contact a Houston car accident attorney for assistance. An attorney can help you navigate Texas’s fault-based insurance system.

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