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Al Boenker Insurance Blog - Is Texas a NO-Fault Auto Insurance State?

  • Is Texas a no-fault insurance state?
  • Minimum coverage
  • What happens if damage exceeds the coverage amount?
  • States with a no-fault state
  • What does cover a No-Fault Insurance?
  • Concept of at-fault state
  • States with a fault state
When getting auto insurance in Texas, it's best to learn how the system works! It doesn't matter what kind of policy or company you decide, the same laws apply for everyone. Let's move on to explain the Texas Auto insurance Systems in an easy way that you'll understand.

Is Texas a no-fault insurance state?

Not at all, Texas belongs to the "at-fault state" as the majority of the states. But what does this mean? In short words, the party who causes the car accident will be responsible for covering the damages. This is only the case if you are not more than 50% responsible for causing the accident. Example: You hit another car and you were damaged, but the third party was responsible because they failed to stop at the stop sign. The third parties insurance company would cover your damages according to the policy limits. That's in the same way if you were at fault in a car accident. At-fault insurance is considered one of the fairest ways to solve a car accident. The responsible party should pay for the damages, which encourages citizens to be aware and become well behaved drivers.

Legal Minimum Coverage

By law, if you decide to drive a vehicle you are required to carry auto insurance. As a driver, you have to obtain the minimum liability coverage that include: protection to the third party's damage caused by you, his or her medical bills and some additional expenses. Those limits are best described as 30/60/25 coverage:
  • $30,000 of coverage for bodily injuries per person
  • $60,000 per accidente
  • $25,000 of coverage for property damage

Click To Read More: Why is it mandatory to have auto insurance in Texas?

What happens if damage exceeds the coverage amount?

In Texas, an injured driver could sue the at-fault driver with the purpose to get the hole coverage for her or his injuries.

It is best to have comprehensive and collision coverages to ensure you and your vehicle are covered beyond the minimum limits. If the person that hit you only had limited liability you would not receive an additional coverage that you might need. 

What happens if you are at fault for an accident?

First of all, never hit and run. On the other hand, at-fault drivers need to have auto insurance, at least liability 'cause in Texas uninsured drivers can face expensive fines for not having it. Click To Read More: What To Do After a Car Accident? Checklist (Regardless you're at faul or not at fault)

At-fault driver's insurance company also has to pay for:

  1. Repair or replace damaged driver's car.
  2. Medical and hospital bills for the driver and their passengers.
  3. Lost because of injury
  4. Pay for rental car if other driver needs

Give your information to the damaged driver, such as:

  1. Driver's license plate number
  2. Policy number
  3. Name of the company
  4. Name
  5. Phone number

Other At Fault Insurance States:

Montana

Idaho

Nevada

California

Alaska

Wyoming

Colorado

New Mexico

Nebraska

Oklahoma

Texas

Iowa

Missouri

Lousiana

Illinois

Tennessee

Mississippi

Alabama

Georgia

And more..

Personal Injury Protection (PIP)

Personal injury protection is available in a few states as a required system and some others it is optional. The PIP is designed to cover your damages by your own company regardless of who is at fault.

What does No-Fault Insurance cover?

  • Personal Injury Protection - covers medical and health expenses, lost earnings, related expenses, household protection against economic losses or pedestrian injured by your vehicle.
  • Liability - to protect against damages on your car or any car you drive with owner's permission.

No-Fault Insurance focuses on covering health injuries caused by a car accident and doesn't cover auto body repair of your car or anyone.

No-fault insurance can provide a limited right to sue (economic losses and non-economic damages). Some states need victims to provide a recorded statement to get access no-fault benefits.

What is the purpose of no-fault insurance?

One of the reasons for the no-fault insurance system was created was in order to reduce the time of the process to determine who was at fault in an accident. The main purpose of the no-fault system is to reduce the delays and the time of determining who needs to take care of the expenses after a car accident. The no-fault system also reduces the possibilities to sue and only with specific cases and politics the driver can sue the third party.

What are the benefits of no-fault insurance?

Besides to supposed to make shorter the process of determining who is at fault, this system restricted the right to sue lowering the cost by taking small claims out of courts, each insurance company pays to insured's damage and injuries regardless of who was at fault. As you know everything has cons and pros, and even all of these benefits, the cons of the no-fault system is it may take a long time to receive what the damaged insured need, some of the critics claim that at-fault laws tend to protect irresponsible driver while innocent can't sue them when they are injured. The fact that you only can sue under specific situations, sometimes could turn in it on cons instead of a benefit.

No-Fault States

Florida

Michigan

New Jersey

New York

Pennsylvania

Hawaii

Kansas

Kentucky

Massachusetts

Minnesota

North Dakota

Utah

Altogether, Texas IS NOT a no-fault state so be sure to get liability auto insurance at the minimum. The best option is a coverage amount that protects you such as comprehensives and collision . Remember, in Texas it is mandatory to have auto insurance, if you still don't have it be prepared to pay a fine. Getting familiar with insurance is a great beginning, the next step is getting a quote and comparing policies. If you have doubts about auto insurance, give us at 1-800-842-6572 a call or write your comments below. An Al Boenker agent is ready to help you find the right coverage the fits your budget.