Texas operates under a “fault” insurance system, not a “no-fault” system. According to the Texas Department of Insurance, drivers must carry liability insurance to cover damages they cause in accidents. The minimum coverage requirement in Texas, known as “30/60/25,” includes:
- $30,000 for bodily injury per person
- $60,000 total bodily injury per accident
- $25,000 for property damage per accident
Fault versus no-fault insurance
States adopt either fault or no-fault insurance rules:
- No-fault insurance requires individuals to file claims with their own insurers regardless of who caused the accident. This simplifies fault determination, but it restricts injured parties from pursuing additional damages from the at-fault driver unless severe injuries occur.
- Fault insurance places financial responsibility on the party at fault. Injured parties can sue the responsible driver for damages, which compels insurance companies to meet greater compensation obligations.
Why fault determination matters in Texas
Establishing fault in Texas is critical for several reasons:
- Policy limits. Liability coverage pays out only when a driver is legally found at fault.
- Comparative fault. Compensation is reduced by the percentage of fault assigned. Under Texas law, injured parties must be less than 51% at fault to receive compensation, and the injured party’s own percentage of blame matters as well. If you are 30% to blame, your compensation drops by that same percentage, and a $100,000 verdict becomes $70,000.
- Third-party liability. Identifying fault can also implicate additional liable parties, such as commercial companies or other entities that contributed to the accident. Think of a commercial truck driver who drives beyond his maximum hours of service, a work truck ahead of you that drops a ladder on the freeway, or a bar that negligently overserves a drunk driver. Each liable party adds additional coverage.
- Punitive damages. Egregious behavior, such as intoxicated or reckless driving, driving a vehicle the driver knows has defective brakes or dangerously bald tires, texting while driving, and many other egregious driving habits, may lead to higher settlements through punitive damages and send an industry-wide message to other drivers to avoid similar behavior.
- Insurance negotiation leverage. Strong fault evidence helps ensure that insurance companies offer fair settlements promptly.
How fault is determined in Texas
Texas follows a comparative fault system, meaning the driver or other party who causes a crash is financially responsible for the harm that party causes. That sounds easier than it is. Lawyers, insurers, and, if necessary, juries or judges weigh all admissible evidence to determine what percentage of responsibility each driver bears.
Fault assessment involves evaluating multiple factors, including:
- Police reports. Officers who respond to the scene document it, diagram and map vehicle positions, and issue and note citations such as speeding, failing to yield, intoxication, or improper maneuvering. Crash reports are not bulletproof evidence, but they help describe what happened leading up to and during an accident, which helps show who was responsible.
- Physical evidence. Measurements from skid marks and tire marks; vehicle data recorders, often called “black boxes,” which are in nearly every vehicle and record hard braking, acceleration events, and steering-wheel movements; surveillance or dash-cam video, which is prevalent in commercial vehicles such as 18-wheelers and fleet vehicles and increasingly common in personal vehicles; and post-crash vehicle inspections, which reveal speed, braking, and impact angles and are usually performed by traffic experts or the Department of Public Safety after a fatal or devastating crash.
- Witness statements. People who saw the accident can help confirm what happened and resolve inconsistencies in the drivers’ versions of events before, during, and after the accident. After an accident, it is important to obtain every witness’s account and contact information so they can be reached later.
- Expert accident reconstruction. Engineers and accident reconstructionists help extract and examine all available evidence from the crash to show how and why it occurred.
- Traffic violations. Texas Transportation Code violations, such as tailgating, improper lane changes, and running a red light, and the Federal Motor Carrier Safety Regulations, which generally apply to commercial vehicles such as trucks and fleet vehicles, help support who was at fault in a crash and why.
SR-22 insurance in Texas
An SR-22 is a certificate demonstrating adequate liability insurance, particularly for high-risk drivers. Circumstances requiring an SR-22 include license suspension, DUI convictions, or failure to maintain previous insurance. Filing for an SR-22 involves:
- Confirming that your insurer provides SR-22 coverage.
- Paying a filing fee and potentially a license reinstatement fee.
- Maintaining SR-22 insurance continuously for two years from the date of the conviction (or, after a crash judgment, from the date of the judgment).
SR-22 insurance premiums are typically higher because of the increased risk associated with these drivers.
After an accident
If you or someone you know has been injured in a car accident in Texas, tell the lawyers at Leatherwood & Schindler what happened. The firm describes elsewhere the records that establish responsibility after a car accident or a truck accident.