Who Pays for a Car Accident in Texas?
When you’ve been injured in a wreck, you may be wondering who pays for the car accident compensation? Texas is an “at-fault” or “tort” state, which means the driver who caused the accident (and their liability insurance) is responsible for paying car accident injury claim compensation. Generally, you have two options:
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File a “third-party” injury claim with the at-fault driver’s insurance company.
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File a car accident lawsuit against the at-fault driver, in which their insurance company will defend them and pay any settlement or judgment.
If you carry certain types of optional coverage on your own auto insurance, you may also be able to file a “first-party” claim with your own insurer.
In Texas, you may be legally entitled to something called damages. The economic and non-economic losses you’ve suffered because of the crash. But before you can recover those damages, it’s critical to understand how the insurance system works and who can be held responsible.
What Does Car Insurance Cover in Texas?
Under Texas law, all registered vehicles must carry minimum liability insurance of 30/60/25:
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$30,000 for bodily injury or death of one person
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$60,000 total for bodily injury or death of multiple people in a single accident
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$25,000 for property damage
Liability insurance is the only required coverage, but many drivers add optional protections, including:
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Collision and comprehensive – Pays for damage to your car in a crash or non-crash event like fire or vandalism.
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Personal Injury Protection (PIP) – Pays for medical bills and a portion of lost income if you’re injured, up to the policy limit.
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Medical Payments (MedPay) – Similar to PIP but covers medical bills only.
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Uninsured/Underinsured Motorist (UM/UIM) – Protects you if the at-fault driver has no insurance or not enough to cover your losses. This also applies if you’re injured by a hit-and-run driver.
What If the At-Fault Driver Doesn’t Have Insurance?
Driving without insurance is illegal in Texas, but some drivers still break the law. If you have uninsured/underinsured motorist coverage, you can file a claim with your own insurance company up to your UM/UIM policy limits. If you don’t have this coverage, your options become much more limited. An experienced attorney may still be able to investigate and identify other possible sources of compensation, such as the vehicle manufacturer or a bar that over-served the driver.
Other Parties That Can Potentially Pay for a Car Accident
While most car accidents are the fault of a careless driver, other parties may also be held responsible:
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Vehicle manufacturer – If a defect, such as brake failure, contributed to the crash, you may be able to sue the manufacturer.
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Dram shop liability – Under Texas law, a bar, restaurant, or other business that serves alcohol to someone who was “obviously intoxicated to the extent that he presented a clear danger to himself and others” can be held liable if that person’s intoxication caused your injuries.
An experienced lawyer will investigate every possible source of compensation because, given the high cost of some car accidents, you need every advantage.
What Are the Types of Damages Available?
But, what are damages? This term refers to the economic expenses associated with your car crash and the non-economic effects your injuries brought into your life.
Damages can be divided into two major types:
- Economic damages in a car accident and;
- Punitive damages in a car accident.
We’ll discuss the details of each type of compensation you may be entitled to next.
Economic Damages for Car Accidents
Economic damages are intended to replace the money you’ve lost or will lose because of the accident. Common examples include:
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Medical expenses – Doctor visits, hospital stays, surgeries, physical therapy, medications, medical devices, ambulance fees, and any future medical care your injuries require.
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Lost income – Wages you missed due to doctor’s appointments, therapy sessions, hospitalization, and recovery time at home.
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Loss of future earning capacity – If your injuries impair your ability to earn money in the future, you may recover compensation for that diminished capacity, based on your occupation, skills, age, and life expectancy.
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Replacement services – The reasonable cost of services you can no longer perform, such as childcare, home maintenance, or yard work.
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Property damage – Vehicle repair or replacement, along with any personal property damaged in the crash.
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Modifications – Changes to your home or vehicle to accommodate a new disability.
Non-Economic Damages for Car Accidents
Non-economic damages compensate you for the physical and emotional toll the accident takes on your life. They often include:
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Pain and suffering – Physical discomfort, ongoing pain, and the expected duration of your recovery.
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Emotional distress or mental anguish – Anxiety, depression, PTSD, and other psychological effects caused by the accident.
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Loss of enjoyment of life – The inability to participate in activities you once loved.
Every car accident victim will follow a unique recovery path. Your injuries and the psychological burden you carry may be more severe than another person’s, making it vital to work with an experienced car accident law firm that can determine the full value of your claim.
Punitive Damages for Car Accidents
So, what are punitive damages in a car accident case?
If the motorist who caused your accident is guilty of particularly outrageous conduct, such as road rage, you may be entitled to punitive damages.
Punitive damages are intended to punish the defendant and discourage him from ever behaving in the same manner again. Typically, the judge decides if punitive damages are warranted, but your attorney is allowed to request them by presenting clear and convincing evidence of fraud, malice or gross negligence on the defendant’s part.
In addition, the court can only issue punitive damages when the jury’s decision about liability and the amount of damages is unanimous. This prevents litigants from seeking excessive jury awards except in the most egregious cases since the plaintiff must meet the clear and convincing evidence standard to the degree that the full jury agrees.
Punitive damages are capped in Texas (see below for more details), and they are generally only awarded when the victim is able to prove gross negligence or malice on the part of the other driver. Although you may receive a punitive damage award, it is intended to punish the wrongdoer more than to compensate you as the victim. The defendant may also appeal the punitive award to get it reduced or eliminated, which can significantly delay you getting the payment.
Fault Could Could Reduce Your Compensation Settlement
Comparative Negligence
Under Civil Practice and Remedies Code Title 2 Section 33.003, Texas recognizes a “modified comparative negligence” standard (also called proportionate responsibility) that allows more than one person to be held at fault for a crash. This statute can help you if multiple parties are responsible for your injuries, but it can also be used against you by the other side to reduce their liability.
Your attorney should make every effort to minimize the blame put on your side of the case, since you must have les than 51% of fault if you want to file a claim for damages. If you are found 52% or more liable, your case will be dismissed. Getting the percentage down is vital, because if you bear any responsibility, it will reduce your settlement.
For example, if you seek $10,000 in damages but are assigned 20% of the blame, your compensation will be 20% less. You would get $2000 less, leaving you with $8,000 for your settlement. The other side will be fighting to prevent paying anything, so your lawyer must have a strong background in negotiation and litigation to get the best possible outcome for you.
This law can be seen as completely unfair to those who must already suffer the aftermath of an injury. As a victim, your rights under this reform appear to be considered far less important than the rights of the insurance company. Do not allow insurance company tricks to convince you that you and your injuries are worth less than they are.
Another law you must consider when filing a personal injury lawsuit is the Texas statute of limitations. This law requires you to file your case against any at-fault parties within two years from the date of your crash. Therefore, you should take action quickly by contacting a reputable car accident attorney so they have enough time to gather evidence, interview witnesses, and craft a robust case.
Have More Questions About Car Accident Compensation?
Contact Attorney Steve Lee if you or a loved one has been injured in a car accident. We offer Free Case Evaluations and will investigate your case and explain the details of your legal options. Contact Us Today.