Your chances of being involved in a car accident at some point in your life are higher than you think. According to the Insurance Information Institute, your odds of being in a crash are one in 366.
We can’t say if you are going to be in an accident, but we can ensure that negligence is held accountable. Every U.S. state has its own system for dealing with personal injury claims, and Texas is no exception as an at-fault state. f you’ve been injured in a crash, an experienced Austin car accident lawyer can help you navigate Texas laws and fight for the compensation you deserve.
In this guide, we explain the differences between no-fault vs. at-fault stats, what it means for your car accident claim, and how to negotiate Texas’s at-fault system.
Key Takeaways
- Texas is an at-fault state, not a no-fault state. In Texas, the at-fault party in an accident is liable for all economic and non-economic damages.
- In the 12 no-fault states, accident claims are made through your own insurer, and your damages will be covered, regardless of whether you were at fault.
- Texas uses a shared fault system for determining compensation, meaning both parties can be considered partially at fault. Under the 51% bar rule, you cannot claim financial compensation unless you are 50% or less responsible for the accident.
- The value of claims is determined by an array of factors, including the severity of your injuries, long-term implications, and the degree of your pain and suffering.
- Hiring an attorney to fight your claim enables you to maximize your compensation, avoid falling for bad-faith negotiating tactics, and have peace of mind that you have a legal expert in your corner.
What are the Fault Laws in Texas?
Texas uses an at-fault accident model for dealing with car accidents. Under Texas’s system, the at-fault driver is responsible for any damages resulting from a collision. The system enables accident victims to claim economic damages, like medical bills and lost wages, and non-economic damages, like pain and suffering.
All victims have the right to seek compensation from the at-fault party or parties. In practical terms, if another driver hit you, you would file a claim with their auto insurance company. In contrast, if a driver hits you in a no-fault state, such as Michigan, fault doesn’t matter, and you would file a claim with your own insurance company.
With Pro-Care Medical Centers reporting that, on average, there’s a crash in Texas every two minutes and six seconds, it’s easy to see how claims could end up being caught up in the legal system for months or even years. Auto insurers are there to protect their bottom lines, meaning hiring an experienced car accident attorney to fight your corner in the Lone Star State is vital.
What is a No-Fault State?
No-fault states is a term used to refer to the states where your own car insurance covers your damages. Your auto insurer will cover your damages regardless of who's at fault. You may also hear no-fault insurance referred to as Personal Injury Protection (PIP).
If you live in a no-fault insurance state, you’ll usually be required to hold a minimum amount of PIP coverage. This requirement makes sure that everyone has sufficient coverage to cover any injuries. It’s a type of coverage separate from other common forms of coverage, including property damage and bodily injury.
So, how do no-fault car accident insurance claims work?
In short, you’ll file a claim with your insurance company after an accident. You’ll usually be asked to provide a recorded statement about your accident and complete a medical exam. As the name implies, fault won’t impact your ability to be reimbursed for damages in these states.
What States are No-Fault States?
Texas isn’t a no-fault state, and pure no-fault insurance states are relatively rare. According to WalletHub, there are only 12 pure no-fault insurance states. Here’s a list of them:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
Other states allow for no-fault insurance as an add-on. Essentially, it acts as extra PIP coverage, allowing you to claim some expenses even if you were the one at fault. According to the Insurance Information Institute, this coverage is optional in most states. Here are the states that offer no-fault insurance:
- Arkansas
- Delaware
- Washington, D.C.
- Maryland
- New Hampshire
- Oregon
- South Dakota
- Texas
- Virginia
- Washington
- Wisconsin
On a side note, three states offer both no-fault and traditional at-fault auto insurance policies. You'll have access to this choice if you live in Kentucky, New Jersey, or Pennsylvania.
Fault and Shared Fault Rules in Texas
Texas uses a modified comparative negligence rule, which opens the door for the concept of shared fault. Multiple parties, including the victim, can be considered partially at fault, influencing the final amount a plaintiff is awarded accordingly.
Under the Lone Star State’s shared fault rules, known as the 51% bar rule, you may only receive financial compensation if you’re 51% or less at fault for a car accident.
It’s also vital to mention that plaintiffs must demonstrate negligence as part of a car accident to claim. In practice, this means that a negligent driver would be someone who failed to act as a reasonable person would, thus resulting in harm.
Typically, there are four elements to demonstrate fault and negligence:
- Duty of Care – The defendant had a duty of care or a legal obligation to act in a way that prevents harm. For example, it’s expected that drivers in Texas keep to the posted speed limit.
- Breach of Care – With a duty of care established, it must be proven that the defendant acted in a way that would be considered irresponsible to breach that duty of care.
- Harm – The breach in the driver’s duty of care must have been a direct cause of the damages you sustained. For example, a speeding driver that crashes into you and causes whiplash has caused direct harm through their actions.
- Damages – All claims must have resulted in some form of damages. You can’t claim monetary compensation if you didn’t sustain any damages. These damages could be anything from medical expenses to emotional suffering.
It’s an ideal system for car accidents because it protects defendants from being blamed solely for accidents, and it highlights the multiple contributory causes that result in accidents. It also gives accident victims the chance to receive financial compensation even if they were partially at fault.
How is Fault Determined in a Car Accident in Austin, TX?
Proving fault is crucial to the success of your case. Hiring an attorney to gather evidence and present it in a way that builds a watertight case is the secret to maximizing your compensation and holding negligent drivers to account.
According to the Texas Department of Transportation, more than half of all motor vehicle collisions result in injuries. An evidence-based approach is the only way to determine fault and open the way for a fair settlement.
Examples of evidence that can come into play include:
- Medical reports
- Accident scene photos
- Eyewitness statements
- Official police accident reports
- Dashcam footage
- Surveillance camera footage
Each car accident case is unique, meaning legal professionals take a different approach every time. For example, in disputed liability cases, a lawyer might call an accident reconstructionist to piece together an accident and prove who was at fault.
Note that the goal is usually to convince the at-fault driver’s insurer of the facts and convince them to settle. In some cases, you may be forced to take your claim to trial. Thankfully, this is rare, with the U.S. Bureau of Justice Statistics revealing that only around 5% of personal injury claims ever reach the trial stage.
What are the Indications a Driver is At Fault?
Proving fault in a vehicle accident may be straightforward or highly complex. It all comes down to identifying negligence factors and proving them through evidence. It sounds relatively simple, but these cases can get tricky when evidence is incomplete or multiple parties are involved.
Let’s look at the three leading fault categories outlined by the Texas Department of Transportation.
Traffic Violations
Traffic violations are one of the more prominent forms of fault, as they illustrate an immediate duty of care breach by breaking the law. The most common examples of traffic violations in Texas include:
- Speeding
- Running a red light
- Running a stop sign
- Failure to yield
- Improper lane changes
Distracted Driving
Driving distracted is no different from closing your eyes for a few seconds while in motion. Approximately one in six crashes on Texas roads involved a distracted driver. Examples of distracted driving include:
- Texting and driving
- Eating and drinking behind the wheel
- Failure to pay attention
- Tailgating
- Turning to speak to other passengers
Aggressive/Reckless Driving
Aggressive and reckless driving isn’t just falling below the minimum expected care standard but driving with a complete disregard for the safety of anyone else. States often have different legal definitions for what constitutes reckless driving.
Forms of aggressive and reckless driving are considered far more serious, with potential criminal charges incoming if proven.
Here are some indicators that aggressive or reckless driving could have contributed to your accident:
- Excessive speeding
- Ignoring traffic signals
- Weaving between lanes
- Failure to maintain control
- Road rage
- Improperly maintained vehicle
Common Myths About At-Fault States
At-fault states like Texas are often poorly understood because of the intricacies within the system and the differences between states.
The most common myth about at-fault states is that the at-fault driver must pay all costs out of pocket. That’s not strictly true. In practically all cases, their insurance company will pay out. The only time a driver must pay out of their own wallets is if the damages exceed their insurance coverage or they don’t have insurance at all.
Another popular myth is that proving fault is a matter of gathering evidence, and your claim will be accepted. The truth is every accident is unique, and determining fault often results in disputes between the victim and the at-fault driver’s insurance company.
It’s also not uncommon for auto insurers to be fully aware that their insured drivers were at fault. Yet, they choose to dispute and question the investigation to minimize the compensation they ultimately have to pay. This is often achieved through bad faith tactics aimed at assigning partial blame to the victim or encouraging them to accept a low-ball settlement offer.
Finally, despite what some people think, you can file a lawsuit against an at-fault driver in Texas. You’re not required to accept an insurer’s offer and are entitled to file a personal injury lawsuit to get the settlement you deserve.
How to Determine the Value of Your Car Accident Claim
The value of your car accident claim depends on the severity of your injuries, financial losses, the at-fault driver’s insurance limits, and whether non-economic damages come into play. According to the Insurance Information Institute, the average collision claim was $5,470 in 2022.
Note that you shouldn’t base your expected settlement on what an insurer quotes. It’s true that software like Colossus is used to calculate claims, but insurers will intentionally aim for the lower end of the scale to pay out as little as possible. Allow your attorney to calculate the true value of your claim.
In the meantime, let’s shed some light on the four primary factors that determine how much your car accident claim could be worth.
Severity of Your Injuries
What injuries did you sustain? The injuries you walk away with and their severity will have an enormous influence on the value of your claim.
Minor injuries, such as cuts and bruises, will always result in smaller settlements than life-changing injuries, including spinal fractures, internal bleeding, and concussions. Part of your claim will also involve factoring in your future care needs and the impact on your life.
For example, your claim value will rise significantly if you’re left permanently disabled and unable to return to work.
Medical Expenses
Medical costs represent the largest expenditure from car accidents. Your attorney will consider your immediate care and rehabilitation costs and any required care in the future. Examples of medical expenses you can claim include:
- Ambulances
- Consultations
- Hospital stays
- Prescription medications
- Physiotherapy
Property Damage
Property damage also forms part of your claim. For most people, this will be their vehicle repair costs or a replacement vehicle if their car is totaled. Compensation for property damage also extends to personal property.
For example, if you have an iPhone 16 sitting on the dashboard and it’s smashed beyond repair because of your accident, you can add the phone's value to your claim.
Pain and Suffering
Pain and suffering damages are the largest non-economic cost of your car accident. It’s designed to address the mental and emotional side of car accidents. Since it’s subjective, most Texas accident claims rely on a multiplier based on the severity of your pain and suffering.
In Texas, multipliers of one to five assign a dollar value to pain and suffering. The chosen multiplier will be used against all economic damages to arrive at a pain and suffering figure.
Say your economic costs are $250,000 and a pain and suffering multiplier of three is applied, this would add up to $750,000 in pain and suffering damages.
Lost Wages
Time off work means you’re not receiving a regular salary. Every lost shift can be added to your total economic damages. Additionally, any lost wages caused due to needing to attend medical procedures or therapy can be incorporated into your final settlement.
Drivers who are left with life-changing injuries, including permanent disabilities, may also claim for loss of earning capacity if they’re unable to return to work or their future career prospects are terminally impacted.
What If You Were Partially At Fault for a Car Accident?
Partial fault for an accident doesn’t necessarily mean you’re unable to claim compensation for your injuries. Instead, it depends on how much you contributed to the accident. In the case of Texas, if you were less than 51% responsible for an accident, you’re entitled to receive financial compensation.
All states handle partial fault differently. For example, some states use a pure contributory negligence system. Under this model, plaintiffs cannot claim compensation if they were even 1% responsible for an accident.
So, how does this work in practice?
Let’s say that Driver A suffered catastrophic injuries after being hit by Driver B, who ran a red light at speed while under the influence. However, it was found that Driver A was texting and driving at the time, meaning they gave themselves no chance of taking evasive action as they weren’t paying attention to the road.
It’s accepted that Driver B is mostly responsible for the accident, and so Driver A is said to be 20% responsible for the accident. If Driver A is then awarded $300,000 for their accident, they would only receive $240,000 to account for their part in the collision.
What is the Statute of Limitations on Texas Car Accident Claims?
Plaintiffs must also consider the statute of limitations factor when making a claim in Texas for an accident that wasn’t their fault. Under the current personal injury laws set by the Texas Legislature, the statute of limitations is two years.
A two-year statute of limitations means that you have two years from the date of your accident to file a lawsuit against the at-fault party. If you don’t file the necessary paperwork in time, you won’t be able to take legal action against them.
One of the common misconceptions about the statute of limitations is that the clock stops the moment you hire a lawyer and enter into negotiations with the insurance company. That’s not true. The statute of limitations only stops when you file formal legal paperwork.
That’s why legal experts recommend hiring an attorney as soon as possible after your accident to begin proceedings.
Is Auto Insurance in a No-Fault Insurance State More Expensive Than In Traditional Liability Insurance States?
Texas is a traditional liability state, meaning it’s up to the at-fault driver to address any damages. But does this system mean drivers inadvertently pay more for auto insurance coverage? According to Bankrate, Texas drivers currently pay an average of $2,572 annually for full coverage and $724 for minimum coverage.
Consumer Watchdog reveals that no-fault auto insurance is consistently more expensive across every state. It’s a revelation that should come as no surprise because:
- Under no-fault systems, the innocent party and the at-fault driver get paid.
- No-fault insurance doesn’t reduce litigation costs, as you can still sue for other costs, such as property damage.
- It’s believed that limiting personal responsibility encourages drivers to act more recklessly.
Auto insurers naturally want to pay out as little as possible, which is why they increase auto insurance premiums in no-fault states since they’ll be expected to pay out for every accident regardless of circumstances.
Minimum Auto Insurance Requirements in Texas
Texas law requires all drivers to carry a minimum level of liability insurance to cover the damages they cause in accidents. As an at-fault state, you aren’t required to have extra coverage to protect yourself, but you must have sufficient coverage to protect others if you hit them.
Currently, Texas operates on the 30/60/25 system, which translates to:
- $30,000 in bodily injury coverage for each person.
- $60,000 in bodily injury coverage for each accident.
- $25,000 for property damage.
You’re committing an offense if you don’t have this coverage and continue to drive. You could receive fines, and your vehicle could be impounded. Simply put, this coverage is the cheapest coverage there is, and it’s also the least effective.
These amounts are extremely low to cover the average cost of a car accident. They’re likely to be exceeded by any moderate accident, meaning your insurance won’t pay the full costs of any claim.
In accidents whereby the at-fault driver has insufficient insurance, the plaintiff may choose to lodge a personal injury lawsuit against them to recover the rest of the damages. If successful, the at-fault driver will be required to pay out of their own pockets.
The Importance of Hiring an Accident Attorney After a Texas Car Accident
Car accident lawyers specialize in personal injury cases. It’s their primary objective to maximize your compensation and ensure that insurers don’t use their bad-faith tactics to reduce how much you’re entitled to.
The facts show that hiring a personal injury lawyer is nearly always the wise option. According to Nolo, plaintiffs who hired a lawyer to fight their cases received three to four times as much compensation as those who filed their own cases.
Some of the reasons for these results include:
- Expertise – Attorneys are experts in their fields. They don’t just understand the law but also how to deploy it on the ground, including how to deal with insurers, create convincing arguments, and defend your legal rights.
- Objective Representation – It’s natural that you’d be stressed, traumatized, and not quite in your right mind after a car accident. All this clouds your judgment, which is where mistakes happen. Lawyers are objective operators, enabling them to look at the facts and present your case in the best possible light.
- Access to Resources – Lawyers rely on networks of professionals to build and strengthen cases. For example, you might be directed to a medical expert, or your attorney may hire an accident reconstructionist.
- Tough Negotiators – Legal professionals do all the negotiating on your behalf. They understand what your case is worth and when auto insurers are trying their best to low-ball you. A good lawyer is invaluable in demolishing insurer arguments and advising you on responding to a settlement offer.
- Peace of Mind – Ultimately, it’s all about peace of mind. The average accident victim doesn’t know anything about personal injury law. Do you want to be learning on the fly while trying to put your life back together? Auto insurers will work with lawyers, so don’t disadvantage yourself by trying to do everything yourself.
It’s true that many plaintiffs worry about what hiring an attorney means for them. They envision substantial legal fees and the potential for financial disaster if they don’t get the result they want, and so they turn away from the idea.
Most experienced car accident lawyers charge no upfront fees. Instead, they operate on a contingency basis. The contingency fee basis means that your lawyer doesn’t get paid until they win your case before taking a percentage of the final settlement.
It motivates them to work hard because they don't get paid if they don’t win. Furthermore, it encourages them to push for the highest possible settlement. In other words, it’s a no-risk shot for the plaintiff.
Contact Our Car Accident Law Firm in Austin, TX
Were you injured in a car accident that wasn’t your fault? Don’t allow a negligent driver to get away with it. At DJC Law, we’ve got more than 30 years of experience in taking on cases in the local community. With a 99%+ case win rate and more than $400 million in settlement money won you know you’re in the best hands.
Discover whether you have a case by taking advantage of our free case consultation. We’ll analyze your case and provide transparent, objective advice on what to do next. Contact us today for your no-obligation appointment.
No-Fault State FAQs
Is Texas an at-fault or no-fault state for car accidents?
Texas is an at-fault state for car accidents. The at-fault driver is responsible for paying any damages they cause through their actions or inactions. In practice, this means that the at-fault driver’s auto insurance company will pay. This system is why every driver must have the legal minimum in liability insurance to drive legally.
What is personal injury protection?
Personal Injury Protection, or PIP, is a type of coverage that allows drivers to receive compensation for their medical expenses and other costs if they’re involved in an accident, regardless of who’s actually at fault. In many states, including Texas, this is an add-on. In no-fault states, it’s usually mandatory.
Which insurance company do you claim against in a no-fault state?
In no-fault states, you will make an accident claim against your own insurance company. Since it doesn’t matter who’s at fault and everyone is entitled to reimbursement for their losses in these states, you would always make a claim through your own auto insurer.
In contrast, Texas is an at-fault state, so claims always go through the at-fault driver’s insurer. In these states, your insurer may even support your claim.
