Does Car Insurance in Texas Follow the Driver?

Anyone who has been involved in a car accident can attest to the myriad issues that arise in the aftermath. There are many ways to mitigate the likelihood of an accident and prevent injuries, and car insurance provides drivers with some financial peace of mind.

Auto insurance is particularly crucial in light of Texas’ fault-based insurance system. Under this framework, Texas requires people who drive in the state to pay for the accidents they cause. 

However, following an accident, injury victims, car owners, and those driving another person’s vehicle may wonder about insurance coverage. Does insurance follow the car or the driver in Texas?

Broadly speaking, car insurance follows the car in Texas, but several nuances to the law may impact what happens if you crash someone else’s car or if someone wrecks your car. 

Texas Car Insurance Requirements

Under Texas law, drivers must show proof that they can pay for accidents they cause. Further, drivers must be prepared to show proof of their insurance coverage when they are behind the wheel.

In most instances, motorists accomplish this requirement by purchasing auto liability insurance. An at-fault driver can invoke their liability insurance coverage to pay for repairs or to replace the other party’s vehicle, pay for damaged property, and pay medical expenses. 

Texas Liability Coverage Requirements 

Texas drivers must meet the state’s minimum car insurance requirements, which include the following:

• $30,000 per person for bodily injury;
• $60,000 per accident for bodily injury; 
• $25,000 per accident for property damage; and
• $2,500 per personal injury protection unless validly waived. 

In addition to the required coverage, Texas drivers might consider increasing their liability coverage or purchasing other protections. 

What Happens If I Crash Someone Else’s Car?

In most cases, Texas auto insurance policies cover the motorist, their family, and people driving their car with permission. Generally, bodily injury liability, personal injury liability, collision, and comprehensive coverage follow the vehicle. However, personal injury protection (PIP) coverage follows the driver. 

But what happens if you wreck someone else’s car or a friend wrecks your car? Generally, car insurance provides coverage to the car, regardless of who is driving the vehicle.

However, there are situations where coverage may vary. If you are asking these questions, it is probably time to speak with a Texas car accident lawyer to learn about your rights, remedies, and responsibilities. 

Tips for Ensuring Adequate Coverage

Ensuring adequate coverage on your car insurance policy is essential for protecting yourself and your assets. Start by checking policy details thoroughly. Review the types of coverage included, such as liability, comprehensive, and collision, and understand the limits of each. Make sure these limits are enough to cover potential damages and liabilities if a car wreck occurs.

Next, consider adding drivers to the policy if necessary. If other people frequently drive your car, consider listing them on your policy to ensure they’re covered in case of an accident. Most policies cover occasional drivers, but you should explicitly include regular drivers to avoid coverage issues.

You should also reassess your coverage needs, especially after significant life changes like buying a new car or moving. Consulting with your insurance provider can help you understand any gaps in your coverage and make necessary adjustments. Adequate insurance coverage provides peace of mind and financial protection in unforeseen circumstances.

Why it’s Essential to Read and Understand Your Insurance Policy

Reading and understanding your insurance policy is crucial for several reasons. First, it helps ensure you have adequate protection. Insurance policies contain detailed information about what’s covered, the limits of coverage, and any exclusions. Knowing these details helps you avoid unpleasant surprises in the event of an accident or claim.

Understanding your policy can also save you money. By being aware of the specific terms and conditions, you can identify any unnecessary coverages or gaps that need addressing. You can tailor your policy to better suit your needs, potentially lowering your premiums.

Another reason to understand your policy is that it includes specific procedures for filing claims and reporting accidents. Familiarizing yourself with these processes can streamline claims and reduce stress during emergencies. Knowing your rights and obligations under the policy can prevent insurance company disputes.

Finally, understanding your policy ensures compliance with state laws and regulations. This knowledge can help you make informed decisions about coverage levels and additional protections.

Insurance Coverage for Rental Cars

Car rental companies usually offer damage waivers and liability policies. It is important to note that damage waivers are not insurance. Instead, damage waivers are agreements that the rental company will not charge the driver for damage to a car they rent.

Although car insurance typically follows the vehicle, this can be an issue for those who do not have auto insurance, rent a car, and cause an accident. Further complicating matters is that most car rental agency insurance policies cover only the individuals named explicitly in the policy. 

Coverage for Borrowed Cars

Those who cause an accident while borrowing a car may seek coverage from the car owner’s insurance policy. However, if the car owner does not have auto insurance or does not have enough to cover all of the damages, the driver’s insurance will kick in.

If a driver causes an accident while driving in a car borrowed from a repair shop, the driver’s liability insurance should pay for the damages to the vehicle and the victim’s injuries and damages. 

What Happens If a Friend Wrecked My Car?

The primary inquiry in cases where a friend wrecks a car owner’s vehicle is whether the friend had permission to borrow the owner’s car.

If the friend was at-fault and had permission to drive the owner’s car, then the owner’s insurance would be the first to cover the claim. If the friend was not at-fault and had permission to borrow the owner’s car, then the at-fault driver’s insurance would be the first policy to cover the claim.

If the at-fault driver’s insurance refutes the claim or does not have enough to cover it, the owner must file a claim with their insurance company.

However, this is only applicable if the owner has collision coverage. Issues arise if neither the car owner nor the at-fault driver has auto insurance. In these cases, the car owner may be unable to collect compensation from either insurance provider.

When and Who to Sue After Texas Car Accident? 

If a car owner lets their friend borrow their car and the friend is involved in an accident because of another’s negligence, the car owner can recover from the at-fault driver.

If the at-fault driver’s insurance company refuses to pay, then the owner may need to file a car accident lawsuit. However, Texas is not a “direct action” state.

As such, owners must first sue the at-fault driver and, if necessary, the at-fault driver’s liability insurer. Further complications may arise if the at-fault driver is driving someone else’s car.

Accordingly, it is crucial to contact a Texas personal injury lawyer as soon as possible after an accident to ensure that you recover compensation for your injuries and damages. 

Legal Help and Resources

If you’re involved in a dispute with an insurer, contact a Texas car accident lawyer with Armstrong Lee & Baker LLP immediately. We can help you deal with issues such as claim denials or disagreements over coverage limits.

How a Lawyer Can Help in Disputes or Complex Situations

Hiring an attorney can also help if you’re involved in a severe accident where the parties contest liability or face a lawsuit.

An experienced Texas car accident lawyer can help resolve disputes and handle legal complications. They can review your policy, negotiate with insurance companies, and represent you in court if necessary. An attorney can also help gather evidence, such as accident reports and witness statements, to strengthen your case. They can guide you on state-specific regulations and ensure you comply with all legal requirements.

Resources for Texas Drivers to Learn More About Car Insurance

Texas drivers can access various resources to better understand car insurance. The Texas Department of Insurance (TDI), for example, offers comprehensive information on insurance regulations, consumer rights, and tips for purchasing insurance. The TDI website also provides guides and FAQs that address common concerns. 

These resources, combined with professional legal advice when needed, will help ensure you’re well-informed and adequately protected.

Do You Have More Questions About What Happens If You Crash Someone Else’s Car?

Does insurance follow the car or the driver in Texas? It generally does, but there are exceptions. The answer may not be as clear as a simple yes or no.

But rest assured that the dedicated Texas car accident lawyers at Armstrong Lee & Baker LLP can help you find out who is responsible for the damages.

With years of experience helping accident victims recover meaningful compensation for their injuries, we understand the personal injury process and what it takes to maximize our client’s damages awards.

To learn more and to schedule a free consultation today, call 832-402-6637. You can also connect with us through our online contact form.