Does Car Insurance in Texas Follow the Driver?

Understanding how car insurance works in Texas is crucial, especially after a car accident. Many people wonder if insurance follows the car or the driver, particularly when involved in an accident involving someone else’s vehicle. This article will delve into the complexities of Texas auto insurance, explaining the rules and exceptions.

Texas Car Insurance Requirements

Texas law mandates drivers carry proof of financial responsibility to cover damages they may cause in an accident. This is typically fulfilled by purchasing auto liability insurance. The at-fault driver uses their liability insurance to cover the other party’s vehicle repairs, property damage, and medical expenses.

Texas Liability Coverage Requirements

Texas drivers must meet the state’s minimum insurance requirements:

  • $30,000 per person for bodily injury
  • $60,000 per accident for bodily injury
  • $25,000 per accident for property damage
  • $2,500 per personal injury protection (PIP) unless validly waived

Drivers should consider increasing their liability coverage or purchasing additional protections beyond the minimum requirements.

What Happens If I Crash Someone Else’s Car?

Generally, car insurance in Texas follows the vehicle. This means that bodily injury liability, personal injury liability, collision, and comprehensive coverage apply to the car, regardless of who is driving it. However, personal injury protection (PIP) follows the driver.

This generally means that the car owner’s insurance will cover the accident, regardless of who was driving their car. However, several nuances might affect coverage:

  • Permission to Drive: If you were driving a friend’s car without their permission, their insurance might not cover you.
  • Other Driver’s Insurance: If the driver of the other car was at fault, their insurance would likely be the first to cover the claim.

If you have any doubts about your coverage or liability, it’s best to consult with a Texas car accident lawyer to understand your rights and responsibilities.

Tips for Ensuring Adequate Coverage

Looking for a personal injury lawyer near you in Houston, TX?

  • Review Your Policy: Understand the types of coverage included (liability, comprehensive, collision), their limits, and any exclusions.
  • Add Drivers: Include frequent drivers in your policy to ensure they’re covered in case of an accident.
  • Reassess Coverage: Make sure your coverage is adequate for your needs, especially after life changes like buying a new car or moving.

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

Reading and understanding your insurance policy is crucial for several reasons:

  • Adequate Protection: It ensures you have the necessary protection in case of an accident.
  • Cost Savings: It helps identify unnecessary coverages and potential gaps, allowing you to tailor the policy for your needs and potentially lower premiums.
  • Streamlined Claims: Familiarity with the policy’s procedures for filing claims and reporting accidents simplifies the process during emergencies.
  • Compliance: Understanding your policy ensures you comply with state laws and regulations.

Insurance Coverage for Rental Cars

Rental car companies typically offer damage waivers and liability policies. It’s important to note that damage waivers are not insurance. They’re agreements where the rental company waives the driver’s responsibility for damage to the rental car.

While car insurance generally follows the vehicle, this can be problematic for those who don’t have auto insurance, rent a car, and cause an accident. Furthermore, most rental car agency policies only cover individuals named explicitly in the policy.

Coverage for Borrowed Cars

If you cause an accident while borrowing someone else’s car, you may be covered by their insurance. However, if they don’t have insurance or their coverage isn’t sufficient, your own insurance would kick in.

If you cause an accident while driving a car borrowed from a repair shop, your liability insurance would cover damages to the vehicle, as well as the victim’s injuries and damages.

What Happens If a Friend Wrecked My Car?

The key factor in accidents involving a friend driving your car is whether they had permission to borrow it.

  • With Permission: If your friend had permission and caused an accident, your insurance would be the first to cover the claim. If the friend was not at fault, the at-fault driver’s insurance would be the first to cover the claim.
  • Without Permission: If your friend didn’t have permission and caused an accident, your insurance might not cover the claim.

If the at-fault driver’s insurance denies the claim or doesn’t have enough coverage, you would need to file a claim with your own insurance company, provided you have collision coverage. If neither the car owner nor the at-fault driver has auto insurance, the car owner might not be able to collect compensation.

When and Who to Sue After a Texas Car Accident?

If a car owner lets their friend borrow their car, and the friend is involved in an accident due to someone else’s negligence, the car owner can recover from the at-fault driver. If the at-fault driver’s insurance company refuses to pay, the owner might need to file a lawsuit.

Texas is not a “direct action” state, meaning owners must first sue the at-fault driver and, if necessary, their liability insurer. Additional complexities may arise if the at-fault driver was driving someone else’s car.

It is crucial to contact a Texas personal injury lawyer promptly after an accident to ensure you receive compensation for your injuries and damages.

Scott Armstrong
Scott Armstrong

If you have a dispute with your insurer or are facing a complex situation, contact a Texas car accident lawyer at ketomud. Our team can help you navigate issues like claim denials or disagreements over coverage limits.

  • Experienced Legal Representation: Our attorneys can help resolve disputes, handle legal complexities, review your policy, negotiate with insurance companies, and represent you in court if needed. They can also guide you on state-specific regulations and ensure you comply with legal requirements.
  • Texas Department of Insurance (TDI): The TDI offers comprehensive information on insurance regulations, consumer rights, and tips for purchasing insurance. Their website provides guides and FAQs to address common concerns.

These resources, along with legal advice when needed, will help ensure you’re adequately protected and informed about Texas car insurance.

Do You Have More Questions?

The answer to whether insurance follows the car or the driver in Texas isn’t always straightforward. But the dedicated Texas car accident lawyers at ketomud can help you determine who’s responsible for the damages.

Learn more about us at: Ketomud

Contact ketomud today to schedule a free consultation and learn more. We understand the personal injury process and are committed to maximizing your compensation.

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