Is Texas a No-Fault State for Car Accidents?

Is Texas a No-Fault State for Car Accidents?

Getting into a car accident can be a scary experience. After undergoing that trauma, you may discover that even more stress awaits you with the insurance claim process. Mighty's AI handles Texas car accident claims as part of building your case file — applying the state-specific at-fault framework automatically so you don't have to manage the process yourself.

Car insurance laws can vary from state to state. If you’re a Texas resident, you may be wondering “Is Texas a no-fault state for car accidents?” In short, no—Texas is an at-fault insurance state.

Below, we’ll break down what this means and answer some frequently asked questions about car insurance in the Lone Star State.

No-Fault Vs. At-Fault Car Insurance: What’s the Difference?

States typically have one of two types of car insurance: no-fault and at-fault, which can determine how involved drivers can obtain compensation after an accident:

• No-fault – In no-fault car insurance states, you don’t need to figure out who was at fault for the accident. Instead, every driver is required to carry a minimum amount of personal injury protection (PIP) insurance.
  
  Personal injury protection  insurance enables people to seek compensation for their injuries and property damage from their own insurance companies. If the damage from an auto accident exceeds a driver’s PIP coverage, they can sue the at-fault party for the remaining amount.
  
  On one hand, this system is simple and streamlined. You don’t have to work with anyone else’s insurance agency or go through the tedious process of proving who was at fault. On the other hand, having to file a claim with your own insurance for an accident you didn’t cause may unfairly raise your rates.
  
  
• At-fault – In at-fault states, like Texas, the at-fault driver is responsible for paying the damages of the auto accident. In turn, you must seek compensation from that driver’s insurance company, rather than your own. If your damages surpass the at-fault driver’s coverage limits, you can request them to pay the remaining amount by filing a personal lawsuit.
  
  Compared to no-fault insurance, at-fault insurance involves more complicated claims work — establishing who bore the majority of responsibility for the accident. Mighty's AI handles this for you: gathering the documentation that establishes fault, building your case file, and opening the claim with the at-fault driver's insurance.

How is Fault Determined in a Car Accident in Texas? 

A car crash can be chaotic. Sometimes, multiple drivers bear some degree of responsibility for the accident. Fault must be determined through investigation.

The following types of documentation are used to establish fault:

• Photos or videos of the accident
• Photos or videos of the resulting damages and injuries
• Witness statements
• Police reports
• Expert opinions

Mighty's AI gathers and organizes all of this documentation in your case file in the format insurance adjusters expect.

Is Texas a 50/50 Car Accident State? 

Texas is a modified comparative negligence state. This means that you can only seek compensation from the other driver’s insurance company if they were more than 51% at fault. 

If you were partially at fault (but less than 51%), the amount of compensation you’re entitled to will be adjusted accordingly. For example, if you were 30% at fault for the accident, you can seek up to 70% of the compensation you would have been entitled to otherwise. 

What Happens After a Car Accident in Texas? 

If you're wondering what to do after a car accident in Texas, the first step is opening a claim with the at-fault party's insurance company. Mighty's AI handles this for you. You should also call 911 right after the accident to file a police report and exchange the following with the other drivers:

• Names
• Insurance information
• Driver's license information
• Car details

Once fault is established, the at-fault driver's insurance coverage should pay for your resulting medical bills, lost wages, property damage, and pain and suffering — up to their coverage amount. Mighty's AI tracks the Texas statute of limitations for your case automatically and captures every category of damage in your case file. If your expenses exceed the at-fault driver's coverage, your case may proceed to litigation. For those cases, Mighty's marketplace surfaces a vetted lawyer paid only on the increase to your existing offer.

Insurance companies may intentionally undervalue your claim or delay resolution, placing you in a precarious financial position. Mighty's AI pushes back on lowball offers with documented counteroffers and tracks adjuster response times — so the process keeps moving.

Will My Car Insurance Rates Go Up if I'm Not At Fault in Texas?

Unfortunately, your car insurance rates may go up after a Texas car accident, even if you weren’t at fault. According to a Zebra State of Insurance Analysis, not-at-fault drivers saw an average insurance rate increase of $67 per year. 

Even so, the impact on your insurance rates should be smaller than if you caused the car crash. 

Move Forward From Your Car Accident Today

Open the claim — but use Mighty to do it. Mighty's AI builds your case file, opens your claim with the insurance company, negotiates a settlement for you to approve, and routes you your payment if the offer is fair. For most accident claims, that's all you need — and you keep 100% of your settlement.

Only hire a lawyer when you need one, which is rarely in the first month or two after an accident. Waiting has two big advantages. First, you may not need one at all, in which case avoiding their fees leaves you with 33% to 40% more of your settlement. Even if you do need one, waiting until you have more information about your case — including an offer from insurance — gives you leverage to negotiate the lawyer's fee down from the standard rate.

A lawyer is genuinely necessary when injuries are serious, liability is disputed, multiple parties are involved, or the insurance company refuses to engage. For those cases, Mighty's marketplace helps to match you with a vetted lawyer who only gets paid on the increase to your existing offer.

Sources

Texas.gov. Chapter 33. Proportionate Responsibility. 

https://statutes.capitol.texas.gov/Docs/CP/htm/CP.33.htm

Zebra. 2022 The State of Auto Insurance.

https://www.thezebra.com/state-of-insurance/auto/2022/