Car accidents can change your life in an instant. Beyond the physical pain, victims often face overwhelming medical bills, time off work, and the stress of negotiating with insurance companies. Many Texans wonder: who actually pays after a crash, how much compensation is available, and what steps do I need to take to protect my rights?

Texas uses a fault-based insurance system, meaning the driver responsible for causing the crash is required to cover the damages. However, car accident compensation isn’t always straightforward. Factors such as shared fault, policy limits, and uninsured drivers can make claims complicated. In some cases, victims may need to pursue multiple sources of recovery to cover all of their losses.

This detailed guide explains how car accident compensation works in Texas, breaking down fault laws, insurance rules, and common challenges victims face. We’ll also show why working with an experienced Houston car accident lawyer can significantly increase your chances of recovering the full settlement you deserve.

Who Pays for a Car Accident in Texas?

Texas follows a “fault” or “tort” system. This means the person who caused the accident is legally responsible for paying damages. If another driver hit you, their liability insurance should cover:

Medical expenses: Emergency treatment, surgeries, hospital stays, physical therapy, and future care.
Lost wages: Income missed during recovery, plus reduced future earning ability if the injury affects your career.
Property damage: Repairs or replacement for your vehicle and any damaged personal items.
Pain and suffering: Compensation for physical pain, emotional distress, and reduced quality of life.
Other out-of-pocket costs: Transportation to medical visits, home modifications, or caregiving expenses.

This structure gives victims three main options:

File a claim with the at-fault driver’s insurer.
File a claim with your own insurer (if you carry additional coverage).
File a personal injury lawsuit in Texas courts.

Shared Fault Rules

Car accidents aren’t always black and white. Maybe both drivers were speeding, or one was distracted while the other failed to yield. Texas applies a modified comparative negligence rule (51% bar rule):

If you are 50% or less at fault, you can still recover damages, reduced by your percentage of fault.
If you are 51% or more at fault, you cannot recover compensation at all.

Insurance companies often exploit this rule by trying to push more fault onto victims. That’s why evidence collection, police reports, crash photos, medical records, and witness statements, is so important to protect your claim.

What Insurance Covers in Texas

All drivers in Texas must carry 30/60/25 liability coverage at minimum:

$30,000 for bodily injury per person
$60,000 per accident for bodily injury
$25,000 for property damage

While this may sound reasonable, in serious crashes it’s rarely enough. A single surgery can exceed $100,000, and damages often climb much higher when you factor in lost wages and long-term care.

Because of this, many Texans purchase extra coverage, such as:

Collision coverage: Pays for your car repairs regardless of fault.
Comprehensive coverage: Covers theft, weather, or damage unrelated to crashes.
Uninsured/Underinsured Motorist (UM/UIM): Protects you when the at-fault driver doesn’t have insurance or doesn’t have enough.
Personal Injury Protection (PIP): Covers your medical costs and lost wages, regardless of fault.

If the At-Fault Driver Has No Insurance

Despite state laws, about 1 in 8 drivers in Texas is uninsured. If you’re hit by one of them, recovering compensation becomes more complex. Your main options include:

UM/UIM coverage: If included in your policy, this can step in to cover medical expenses and property damage.
Collision coverage: Helps pay for vehicle repairs, though you’ll usually have to cover your deductible.
PIP or MedPay: Covers immediate medical costs and income replacement.
Civil lawsuits: You may sue the at-fault driver personally, but if they lack insurance, they often lack the resources to pay.

This is why carrying UM/UIM coverage is highly recommended in Texas, it may be your only realistic way to recover damages in these cases.

Other Liable Parties

Sometimes, the at-fault driver isn’t the only party responsible. Depending on the accident, compensation may also come from:

Employers: If the at-fault driver was working at the time of the crash (delivery driver, trucker, etc.).
Car manufacturers: If a vehicle defect, such as faulty brakes or airbags, caused or worsened the accident.
Government entities: If poor road design, dangerous construction zones, or missing signage played a role.

These claims require thorough investigation but can lead to much higher settlements, especially in catastrophic injury cases.

When You’re Not at Fault

If you weren’t at fault, you can file a third-party claim against the negligent driver’s insurance. However, insurers often try to minimize payouts by:

Arguing that your injuries were pre-existing.
Claiming you exaggerated damages.the
Offering low settlements that don’t cover long-term needs.

If the damages exceed the at-fault driver’s policy limits, you may need to turn to your own insurance (UM/UIM, PIP) or file a lawsuit.

Insurance Reporting Deadlines

Insurers expect immediate notice of an accident, usually within 24 to 72 hours. Delays can give them an excuse to deny your claim.

Separately, Texas’s statute of limitations for personal injury is two years from the date of the accident. Miss this deadline, and you lose the right to sue. Exceptions are rare, so acting quickly is essential.

Why Hiring a Lawyer Matters

Insurance companies know how to protect their bottom line. They have teams of adjusters and attorneys trained to reduce settlements. Without legal help, many victims unknowingly accept offers that barely cover short-term bills, leaving them responsible for ongoing care.

A skilled Houston car accident lawyer can:

Investigate the crash and gather evidence.
Handle negotiations with insurers.
Calculate full damages, including future medical needs and non-economic losses.
Challenge unfair fault assignments.
File lawsuits when insurers refuse fair payment.

Studies consistently show that victims represented by attorneys recover substantially higher settlements than those who go it alone.

Don’t Let Texas Car Accident Laws Cost You Thousands

Navigating car accident compensation in Texas isn’t easy. Fault rules, insurance coverage, and strict deadlines can make the process overwhelming, and one small mistake could cost you thousands of dollars in the settlement you deserve.

The good news is you don’t have to face this battle alone. With the right legal guidance, you can recover for medical expenses, lost wages, vehicle damage, and even the emotional toll the accident has taken on your life.

At Abogada Kim Bruno, we fight aggressively for car accident victims across Texas. Our goal is simple: to protect your rights and secure the maximum compensation possible so you can focus on healing.

Contact Abogada Kim Bruno today for a free consultation and take the first step toward justice and recovery.