Insurance Claim Rights in Texas
Texas is the second-largest auto insurance market in the country and uses a modified comparative fault system with a 50% bar. The state has strong consumer protections through the Prompt Payment of Claims Act, which penalizes insurers that delay with 18% annual interest and attorney fees. Texas requires 30/60/25 minimum liability coverage.
30/60/25
Min. Liability
2 yrs
PI Deadline
2 yrs
PD Deadline
Yes
Diminished Value
Fault System
How Texas's At-Fault (Tort) System Works
Texas is an at-fault (tort) state. This means the driver who caused the accident is financially responsible for the other party's damages. After an accident, you file a claim against the at-fault driver's insurance company. If the claim is denied or undervalued, you have the right to file a lawsuit to recover your damages.
Deadlines
Statute of Limitations in Texas
Personal Injury
2 Years
You have 2 years from the date of the accident to file a personal injury lawsuit in Texas. Missing this deadline permanently bars your right to seek compensation for medical bills, lost wages, and pain and suffering.
Property Damage
2 Years
For property damage claims (vehicle repairs, total loss, personal property), Texas allows 2 years to file a lawsuit. This includes diminished value claims if applicable. Report damage to your insurer as soon as possible: report to insurer within 30 days; police report required for accidents with injury or damage over $1,000.
Coverage Requirements
Minimum Auto Insurance in Texas
Texas requires all drivers to carry at least 30/60/25 in liability coverage. These numbers represent the minimum bodily injury per person / bodily injury per accident / property damage limits in thousands of dollars. While these are the legal minimums, higher coverage is strongly recommended.
Bodily Injury / Person
$30,000
Maximum per injured person
Bodily Injury / Accident
$60,000
Maximum per accident total
Property Damage
$25,000
Maximum for property damage
Diminished Value
Diminished Value Claims in Texas
Texas Allows Diminished Value Claims
After an accident in Texas, your vehicle may lose market value even after high-quality repairs — this is called "diminished value." Texas allows you to file a diminished value claim against the at-fault driver's insurance to recover the difference between your vehicle's pre-accident and post-repair market value. The amount recoverable depends on the vehicle's age, mileage, damage severity, and repair quality.
Calculate your diminished valueKey Laws
Important Insurance Laws in Texas
Texas follows a modified comparative fault rule with a 50% bar (Tex. Civ. Prac. & Rem. Code § 33.001).
Texas law requires insurers to acknowledge receipt of claims within 15 days and accept or deny within 15 business days after receiving all required documentation (Tex. Ins. Code § 542.055-056).
Under the Texas Prompt Payment of Claims Act, insurers that delay payment owe 18% annual interest plus attorney fees.
Resources
Texas Department of Insurance
If you have a complaint about your insurance company or need help with a claim dispute in Texas, contact the state Department of Insurance. They regulate insurance companies operating in Texas and can assist with claim disputes, bad faith complaints, and coverage questions.
FAQ
Frequently Asked Questions About Texas Insurance Claims
What is the Texas Prompt Payment of Claims Act?
This law requires Texas insurers to acknowledge claims within 15 days and accept or deny within 15 business days after receiving all documentation. If an insurer fails to pay a valid claim promptly, they owe 18% annual interest on the overdue amount plus reasonable attorney fees. This is one of the strongest prompt payment laws in the country.
How does Texas comparative fault work?
Texas uses modified comparative fault with a 50% bar. If you are 50% or more at fault, you receive no compensation. If you are less than 50% at fault, your damages are reduced by your fault percentage. This is sometimes called the '51% rule' because you must be less than 51% at fault to recover.
What are the minimum insurance requirements in Texas?
Texas requires 30/60/25 minimum liability coverage: $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage. Personal injury protection (PIP) of $2,500 is included by default but can be rejected.
Can I file a diminished value claim in Texas?
Yes, Texas allows diminished value claims against the at-fault driver's insurance. You can recover the difference between your vehicle's value before the accident and its value after repairs. Texas courts have recognized diminished value as a legitimate component of property damage.
Start Your Texas Claim with InsurifyAI
InsurifyAI knows Texas's insurance laws and generates state-specific demand letters, settlement estimates, and claim strategies tailored to TX's at-fault (tort) system.
No credit card required. Free to start.