How Does Fault Car Insurance Work in Texas?

States in the U.S. are divided into two main categories when it comes to car insurance: fault and no fault. 

This refers to how car insurance claims are handled after an accident based on which driver caused the accident. In no fault states, drivers are generally held accountable for damages and injuries they suffer no matter who is technically at fault for an accident. Meanwhile fault states calculate who pays for damages based on who is at fault. 

Is Texas a Fault State for Car Insurance? 

Texas is a fault state when it comes to car insurance. This means that if you cause an accident on a Texas road, you will likely be held responsible for paying for the damages. This can generally be done by filing a claim with your car insurance policy, which is why liability insurance is required in Texas. With these minimum liability requirements, it guarantees that drivers who cause accidents on the road have a way to pay for damages and injuries they cause. 

Texas car insurance requirements include: 

• $30,000 in bodily injury liability per person 

• $60,000 in bodily injury liability per accident 

• $25,000 in property damage liability 

Keep in mind that these are the minimums required and Texas and not all of the insurance you should have on your car insurance policy. To protect you, your vehicle and your passengers, you will also want comprehensive, collision and personal injury protection. 

In case someone else causes a wreck and isn’t carrying these basic insurance coverages, you will need uninsured and underinsured motorist coverage. This coverage can help pay for damages and injuries in case the other drive involved in the accident doesn’t have enough (or any) insurance to compensate you. 

How is Fault Calculated in Texas? 

States use a fault standard when calculating fault, and Texas uses a modified fault standard. This means that there is a 51% bar rule on car accident fault. If you are determined to be 51% at fault or higher, you cannot receive compensation for injuries or damages incurred in the accident. If you are found 50% or less at fault, however, you can seek compensation for the remaining fault balance from the other driver(s). If you are determined less than 51% at fault for a car accident in Texas, you can seek compensation for damages to your vehicle as well as injuries such as whiplash, scrapes, brain injuries and more.