Car Accident Compensation in Texas
There is no “average” car accident settlement in Texas because there is no exact formula for determining the settlement amount. Every accident is unique unto itself.
The amount of compensation depends on so many things:
- The severity of your injuries
- Your loss of past and future wages
- The costs of reasonable and necessary medical expenses
- The type of insurance coverage you and the other party have
- Whether you were partly at fault
- The evidence and documentation you provide
- You or your attorney’s ability to argue the case
Much also depends on Texas liability insurance laws, which dictate how much (or how little) insurance the state requires drivers to carry.
In this post, we’ll review Texas car insurance coverage, “at fault” state terms, and other factors that affect car accident compensation.
Car Insurance Coverage in Texas
Texas only requires drivers to carry liability insurance. Specifically, all registered vehicles must have 30/60/25 liability coverage insurance. What do those numbers mean?
- $30,000 in bodily injury liability for injury or death of one person in an accident
- $60,000 in bodily injury liability for injury or death of multiple people in a single accident
- $25,000 for property damage in a single accident
Liability insurance only covers damage to the other party in the accident in cases where you are at fault or partially at fault. It covers nothing to pay for your injuries, death, or property damage.
All other insurance is optional and falls under three categories:
- Collision and Comprehensive. Collision and comprehensive insurance pay for any damage your car receives in a crash and non-crash event. A non-crash event could include fire or vandalism. If you use the insurance, you may be responsible for a deductible.
- Personal Injury Protection (PIP). Person injury protection pays your medical bills and part of your lost income if you are injured in an accident. It pays up to the policy limit. You are not required to carry this coverage, but your insurance company is required to offer it to you.
- Medical Payments (MedPay). MedPay pays for medical bills only. This category also contains uninsured and underinsured motorist coverage (UM/UIM). MedPay pays if the other driver is at fault or partially at fault and either has no insurance or their insurance will not cover the entire cost of medical care.
Driving Without Insurance Is Illegal in Texas
Texas requires all registered vehicles to be covered by liability insurance. However, there is always someone who neglects to purchase even that minimal insurance or whose policy cannot cover the required compensation.
If you have uninsured/underinsured coverage, you can file a claim with your own insurance company and receive compensation up to your policy limit. This type of insurance also applies if you are involved in a hit-and-run accident or with a “phantom vehicle” that the police never find.
Without UM/UIM, your compensation options become more limited. An experienced auto accident attorney might investigate and identify other possible compensation options. It all depends on the circumstances.
Alternatively, you can try to file suit against the other driver to recover compensation from their personal assets. However, this is a highly complex legal action, and, frankly, most uninsured drivers don’t have assets to seize or sell.
What Is “At-Fault?”
Texas is a tort or “at-fault” state, meaning the at-fault driver and their liability insurance pay compensation for your car accident injury claim. You have up to two years from the date of your accident to file a lawsuit, and there are limited exceptions to that period.
After the statute of limitations has expired, you can no longer file a lawsuit. Also, you are unlikely to receive compensation from the other driver’s insurance company.
There are some limits on damages depending on other factors. For example, if the accident occurred during the scope of a public servant’s job, you are limited to $100,000 in compensation. Liability is also limited for claims arising from community service incidents.
Exemplary damages are limited to the greater of three amounts:
- $20,000, or
- Two times the amount of economic damages plus $750,000, or
- Two times the amount of economic damages plus the amount of non-economic damages
You are also limited to 50% of modified comparative negligence. Therefore, if you are injured, you have two options.
You can file a third-party injury claim with the at-fault driver’s insurance company or a car accident lawsuit against the at-fault driver, who the insurance company will represent. It’s possible you could file a first-party claim with your own insurance if you have a specific type of coverage.
Modified Comparative Fault
Texas says drivers can be held partially at-fault in an accident. Damages are awarded according to the percentage the other parties are at fault. For example, if you were in an accident with two other drivers, one driver was 70% at fault, and the other was 30% at fault. You receive 70% of your compensation from the first driver’s insurance and 30% from the second driver’s insurance.
What if you are partially at fault? If the law determines you are at least 51% at fault, you can receive no compensation. Any percentage under 51% means you can recover compensation.
Other Compensation Sources
Beyond insurance, you have other potential options for compensation.
The car manufacturer is held responsible for producing a safe and reliable car. If you can prove it didn’t meet that responsibility, you might be able to sue for compensation. For example, if you are rear-ended by another car and can determine it was because of brake failure, you might be able to sue for compensation from the automaker.
“Dram shop” liability refers to the law that allows you to obtain compensation for some drunk driving accidents from restaurants, bars, or other businesses that serve alcohol. You must show that the business served alcohol to someone “obviously intoxicated to the extent that he presented a clear danger to himself and others.”
You must show the patron’s intoxication caused your injuries.
Final Note
Texas requires all registered vehicles to carry liability insurance, which can compensate for property damages, injuries, and death if the driver is found to be at fault in an accident. You can obtain compensation up to the limit of their policy.
You can also attempt to obtain compensation from asset seizure if the other motorist is uninsured, but you are unlikely to receive much, if anything.
Texas is an at-fault state — whoever is at fault for the accident pays. It is also a modified comparative fault state. If you are more than half at fault, you receive no compensation. Otherwise, you receive a percentage of compensation from other parties’ insurance coverage.
Compensation depends on the documentation you provide the court and your attorney’s ability to argue your case. If you have been in an injury accident or a loved one has died due to a car accident, contact Mukerji Law to help you receive fair compensation.
WRITTEN BY Welcome