Is Texas a No-Fault State for Auto Insurance?
Texas is an at-fault state, though drivers may sometimes share responsibility for an accident.
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Written byStephanie Colestock
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Founder of personal finance site TomorrowsDollar.com
Candidate for CFP® certification
Stephanie is a DC-based freelance writer specializing in personal finance. Her work covers insurance, loans, real estate investing, retirement, and more.
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Edited 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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Updated September 3, 2024
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Table of contents
Texas operates under an at-fault insurance structure. Unlike a no-fault state, which requires drivers’ own insurance to cover bodily injuries, at-fault states like Texas place the burden of car accident-related damages on the driver who was responsible. But this may be one contributing factor to the state’s higher-than-average insurance rates.
Depending on the company you choose for Texas car insurance, you may still be able to purchase additional personal injury protection, which can ensure that you’re covered (even if the at-fault party doesn’t have enough insurance). Here’s how at-fault accidents work in Texas.
Texas is an ‘at-fault’ car insurance state
Drivers in the Lone Star State are subject to an at-fault car insurance system. This means that each driver must carry their own liability insurance at all times, according to Texas law.
If an accident occurs, the at-fault driver’s liability insurance generally pays for any property damages and bodily injuries the other driver incurs.
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What are shared fault rules in Texas?
While some accidents are fully the fault of one driver, in some accidents, fault may be questionable if multiple drivers are to blame. Texas accounts for this with its modified comparative fault system, which allows for multiple drivers to be assigned fault for an accident.
It also allows Texas drivers to seek damages even if they’re deemed partially responsible for an accident, as long as they aren’t 51% or more at fault. Drivers who are 51% or more at fault can’t claim any compensatory losses.
The shared fault system also affects any damages you receive. For example, take a driver who’s deemed 30% at fault for an accident. They’re awarded $50,000 for bodily injuries, but they’ll only be able to recover $35,000 of that (70% of $50,000) because of their partial fault for the accident.
At-fault vs. no-fault car insurance
Auto insurance is designed to protect drivers from unexpected property damage and bodily injury expenses related to an accident. But how that plays out depends on where you’re insured and whether you live in an at-fault or no-fault state.
At-fault states
At-fault states put the onus on the driver who’s responsible for the accident. The at-fault driver uses their auto insurance coverage to pay for the not-at-fault driver’s damages — including any repairs to their vehicle, medical care, and personal property damage.
If the at-fault driver also purchases additional protections — such as comprehensive coverage or medical payments (MedPay) coverage — they can also use their insurance to cover their expenses.
No-fault states
In no-fault states, all drivers are required to carry their own coverage so they’re always protected no matter who causes an accident. These policies are designed to provide (and are often referred to as) personal injury protection (PIP).
If you’re injured in an accident, you’ll file an insurance claim with your own insurer, regardless of who was at fault. You must file property damage claims with the at-fault driver’s insurer (even in a no-fault state). And drivers in no-fault states are still required to carry liability coverage for this reason.[1]
Here’s a closer look at how at-fault and no-fault insurance factors compare:
Insurance Factor ▲▼ | At-Fault ▲▼ | No-Fault ▲▼ |
|---|---|---|
| Whose policy pays for property damage from an accident? | The insurer of the driver who caused the accident | The insurer of each driver, regardless of who caused the accident |
| Whose policy pays for bodily injuries from an accident? | The insurer of the driver who caused the accident | The injured parties’ own insurance companies, regardless of who caused the accident |
| Biggest benefits | The not-at-fault driver isn’t responsible for damages or injuries after an accident | Drivers don’t have to worry about uninsured or underinsured drivers and can recover bodily injury claims from their own policy (even when they’re at fault) |
Good to Know
Currently, 12 U.S. states operate under a no-fault system: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.
Minimum car insurance requirements in Texas
Texas requires drivers to maintain a liability policy with minimum coverage limits of 30/60/25. This means in order to be a legal driver in accordance with Texas car accident laws, you need to carry at least $30,000 in bodily injury coverage ($60,000 per accident) and at least $25,000 in property damage coverage.[2]
You may choose to add additional liability coverage to your policy. This extra coverage can help protect you financially if the property damage and bodily injury costs after an accident exceed these minimum limits.[3]
Optional car insurance coverage in Texas
In addition to your required state coverage, these are some other Texas car insurance coverage options you might want to consider:[4]
Comprehensive coverage
Comprehensive insurance can pay to repair or replace your vehicle following a crash or covered event, such as a hit-and-run, stolen vehicle, or act of God.
Collision coverage
Whether you live in an at-fault or no-fault state, collision insurance can help pay for your car damage when you’re at fault for an accident.
Uninsured/underinsured motorist coverage
Even if Texas drivers are required to maintain a certain level of liability protection, they may let this coverage lapse or it could simply not be enough to cover your damages. By buying optional uninsured/underinsured motorist coverage, you protect yourself if your expenses exceed the at-fault driver’s policy limits.
Personal injury protection coverage
Personal injury protection allows an injured party to seek compensation for their own bodily injuries, even when at fault for an accident. You can also use PIP coverage if the at-fault driver’s coverage is insufficient to cover your expenses. It can cover everything from medical expenses to lost wages. All Texas auto policies include PIP coverage. If you don’t want it, you need to inform the insurer in writing.
Medical payments coverage
Medical payments coverage can cover medical bills, deductibles and copays, prescriptions, and more for you and your passengers, regardless of who was at fault for the accident.
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What to do in case of a car accident in Texas
No one plans to be in an auto accident, but it’s important to know what to do if one occurs. Follow these steps after an accident:[5]
Check for injuries. Immediately after an accident, make sure that you and any passengers in your vehicle don’t have any serious medical injuries. Then, check whether the occupants of any other vehicles are injured, if it’s safe to do so.
Call for help. If anyone is injured, call 911 immediately. Even if no one’s injured, it’s still a good idea to call the police’s non-emergency number to report the accident.
Get to a safe place. If your accident was minor or the vehicles are still drivable, try to move them out of the roadway once you’ve ensured everyone is safe and unhurt.
Don’t admit fault. Even if you believe you’re to blame for the accident, it’s recommended that you don’t admit fault at the scene.
Document everything. Whether you’re the at-fault or not-at-fault driver (or aren’t yet sure), it’s important to document the accident scene. Take as many photos as you can of your vehicle, any other vehicles involved, the roadway, and any property damage.
File a police report. In most areas, after you call the police to report an accident, an officer will be sent out to document the incident, file a report, and facilitate any necessary vehicle towing. Be sure to get the officer’s name and badge number so you can easily request a copy of the report later.
Contact your insurance company. Regardless of fault, let your insurance company know that you were involved in an accident. Depending on fault and your coverage, your insurer can help get you in a rental car, begin repairs, file a claim, and more.
Get checked out. Visit an urgent care facility, emergency room, or your doctor for an exam after the accident — even if you don’t have any apparent injuries, it’s always wise to get checked out after a car accident. Whether you visit your doctor or an urgent care facility, they can check you for hidden or unexpected injuries.
Texas car insurance FAQs
If you want to know more about Texas car insurance laws and how at-fault insurance works in the Lone Star State, check out this additional information.
What if an at-fault driver is uninsured in Texas?
Texas law requires all drivers to maintain state-minimum liability coverage. But some drivers fail to purchase or renew this coverage. If an uninsured driver hits you, you’ll need to use any uninsured motorist, collision, PIP, or MedPay coverage on your policy to cover your expenses; otherwise, you’ll pay out of pocket.
Is Texas a 50/50 state in car accidents?
No, Texas isn’t a 50/50 state in car accidents. Instead, the state follows a modified comparative negligence system, which allows all drivers to recover damages as long as they aren’t 51% or more at fault.
Will your Texas car insurance rate go up if you’re not at fault in an accident?
Unfortunately, your car insurance premiums can go up following an accident, even if you’re not the at-fault party. This is especially true if you file a car accident claim against your own insurance policy for collision coverage, PIP, and MedPay.[6]
Should you hire a lawyer after an accident in Texas?
It depends. A personal injury attorney can help you navigate a claim against the at-fault driver, especially if you have extensive bodily injury expenses. If you’re 50% or less at fault, speaking with a lawyer may be beneficial. Just note that if you hire a lawyer to work on your behalf, they’ll usually charge a fee equal to 33% of any damages recovered.
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Sources
- Insurance Information Institute. "Background on: No-fault auto insurance."
- Texas Department of Insurance. "Auto insurance guide."
- Insurance Information Institute. "How much auto coverage do I need?."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
- Insurance Information Institute. "What to do at the scene of an accident."
- Insurance Information Institute. "Do auto insurance premiums go up after a claim?."
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Stephanie Colestock
Stephanie is a DC-based freelance writer and Certified Financial Education Instructor (CFEI). She primarily covers personal finance topics such as insurance, loans, real estate investing, and retirement. Her work can be found on CBS, FOX Business, MSN, Yahoo! Finance, Business Insider, and more. When she isn't helping people plan for their financial futures, she is traveling, hiking with her kids, or writing for her own website, TomorrowsDollar.com. She can be reached on Twitter @stephcolestock
Edited bySarah Archambault
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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