What Happens If the Person at Fault in an Accident Has No Insurance in Texas?

Motorists in Texas operate under an at-fault accident system under state law. Under this system, an at-fault driver is legally liable for the injuries and associated damages from an accident.

However, according to the Texas Auto Insurance Guide, car accident victims are advised to seek compensation from their insurance providers if the at-fault driver is uninsured or underinsured. In such cases, the availability and extent of compensation depend on whether the victim carries collision, uninsured/underinsured (UM/UIM) motorist, or personal injury protection (PIP) coverage.

Nevertheless, at-fault drivers do not avoid civil liability simply because they lack insurance. Accident victims still have the right to sue the responsible motorist for compensation. However, pursuing a claim against an uninsured driver is often more challenging and may result in inadequate recovery. Driving without insurance is considered one of many Texas traffic violations and infractions, subjecting the driver to fines, license suspension, reinstatement fees, and potential vehicle impoundment.

Is It Illegal To Drive Without Insurance In Texas?

Yes. § 601.051 of the Texas Transportation Code prohibits a person from operating a motor vehicle without proof of financial responsibility. This responsibility is typically fulfilled through a motor vehicle liability insurance policy that complies with state requirements. It is noteworthy, however, that drivers of specific vehicles, such as a former military vehicle, vehicles exclusively used for exhibitions, and certain neighborhood electric vehicles, are exempt from this rule.

That said, § 601.191 of the Texas Transportation Code prescribes penalties for defaulters, such as:

• Fines from $175 to $350 for a first offense (fines may go below the minimum threshold if the court determines that the offender cannot pay the fine).
• $350 to $1000 in fines and driver's license suspension for subsequent offenders. An offender may escape license suspension if they file and maintain proof of insurance (SR-22) with the Texas Department of Public Safety (DPS) and keep it active for two years.
• An automatic surcharge of $250 yearly for 3 years for all categories of offenders.

If there was an accident involving injury, death, or property damage above $1000, the at-fault uninsured driver may also be liable to:

• Driver's license and vehicle registration suspension
• Suspension of non-resident operating privilege, where applicable

Drivers who have insurance but fail to carry proof of financial responsibility in their vehicles in Texas may be cited for driving without proof of insurance. Offenders typically face no penalty if they present valid proof of coverage within 10 days. However, the absence of evidence of financial responsibility creates a presumption of no insurance at the time of the offense and may result in prosecution accordingly.

Furthermore, an at-fault driver who operates a vehicle in violation of a requirement to establish financial responsibility commits an offense under § 601.195 of the Texas Transportation Code. This offense is a misdemeanor punishable by confinement in a county jail for up to 6 months, a maximum fine of $500, or both.

What Is the Minimum Insurance Requirement in Texas?

Per $ 601.072 of the Texas Transportation Code, financial responsibility can only be established when a driver obtains the following minimum amounts of motor vehicle liability insurance coverage:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Every other type of insurance coverage is optional in Texas.

What To Do After A Car Accident With an Uninsured Driver in Texas

Per Chapter 550 of the Texas Transportation Code, drivers party to a collision resulting in injury or death must immediately stop and stay at the scene to exchange insurance and contact details, as well as render reasonable assistance to those injured. The next important steps include:

Step 1: Notifying Law Enforcement

In Texas, drivers are required to report any collision to the local police or sheriff's office without delay if it leads to injury, death, or substantial property damage. This report is essential for initiating a peace officer's investigation and preparing an official written crash report.

Step 2: An Uninsured/Underinsured Motorist Coverage Check

If the at-fault driver lacks insurance, the victim can claim damages under their own uninsured/underinsured motorist coverage, if available. Uninsured/underinsured motorist coverage also covers hit-and-run accidents where the other driver sped off without exchanging their insurance information.

Step 3: Pursue a Civil Lawsuit

Car accident victims in Texas may sue the at-fault driver to recover damages. A judge (or jury) will ascertain liability and the appropriate compensation based on a preponderance of the evidence.

Step 4: Report the At-Fault Driver's Violation

Accident victims can hold the at-fault driver accountable by filing a complaint with the Texas Department of Public Safety. This can trigger administrative penalties against the defendant, such as driver's license and vehicle registration suspension.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Uninsured drivers in Texas still have the legal right to pursue damages from an at-fault party in a car accident claim or lawsuit. However, their lack of insurance may complicate the process. In addition to potential penalties for driving without insurance, an uninsured claimant may face challenges during litigation, especially if they are found partially at fault under Texas's comparative negligence rule.

Can I Sue an Uninsured Driver in Texas?

Yes. A victim can sue an at-fault uninsured driver in Texas to hold them liable for the full extent of the damages (lost wages, medical bills, property damage) caused by the accident. Depending on the peculiarities of each case, victims may also obtain non-economic and punitive damages.

Punitive damages are restricted to $200,000 or double the economic damages + non-economic damages up to $750,000 non-economic damages, whichever is greater. On the other hand, small claims handled by the Justice of the Peace Courts are capped at $20,000, excluding attorney fees and court costs.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Texas?

Yes. Depending on a crash victim's insurance coverage, they may be protected in an accident involving an uninsured or underinsured at-fault driver. Uninsured/underinsured motorist (UM/UIM) coverage compensates for medical bills, lost income, pain and suffering, and rental car expenses in qualifying cases.

Additional coverages like collision coverage pay for the repair or replacement of the victim's vehicle after a crash, regardless of who was at fault. Meanwhile, Medical Payments (MedPay) coverage covers medical expenses for the driver and any passengers, regardless of liability.

What Is Uninsured Motorist Coverage in Texas?

Uninsured/underinsured motorist coverage helps cover economic and non-economic damages incurred in accidents where the at-fault driver has insufficient or no insurance coverage. This coverage also covers hit-and-run accidents where efforts to determine the driver's identity fail.

Texas law does not mandate drivers to purchase uninsured/underinsured motorist (UM/UIM) coverage, although insurance companies must automatically include it in policies. However, motorists may reject this coverage in writing.

What If I Don't Have Uninsured Motorist Coverage in Texas?

Accident victims with no UI/UIM coverage in Texas can explore the following options to obtain compensation for their losses:

• Initiate a civil claim against the at-fault party to recover medical bills, property damage, lost wages, pain and suffering, etc.
• Rely on other insurance coverages, such as collision coverage and MedPay.
• Leverage the Texas Crime Victims' Compensation (CVC) Program if the accident involved an eligible crime, such as hit-and-run or DWI (driving while intoxicated).

How Do I Get Compensation from an Uninsured Driver in Texas?

Car accident victims in Texas can obtain compensation from an uninsured driver by initiating a civil lawsuit. The litigation process in car accident cases is directed by the Texas Rules of Civil Procedure (TRCP) and begins with an original petition filed with the court clerk in the county where the accident occurred or the defendant resides. In these cases, the presiding court is determined by the amount in damages claimed.

Next, the defendant must be served with a citation and the petition in compliance with TRCP Rules 99-107. The defendant has about 20 days from the service date to respond to the petition or risk a default judgment being entered under TRCP Rule 239.

Immediately after the defendant files an answer, the case moves to the discovery stage, which is governed by TRCP Rules 190-215. During this stage, both sides exchange relevant documents and facts through disclosures, interrogatories, depositions, physical and mental examinations, and more to help them prepare for trial. The parties may also decide to settle out of court during this stage.

If the case is not resolved through settlement, it proceeds to trial, where both parties present their arguments to a judge or jury through opening statements, evidence, direct examinations, cross-examinations, and closing arguments. The jury or judge then renders a verdict, followed by a final judgment, bringing the case to a close.

How Much Can You Recover From an Uninsured At-Fault Driver in Texas?

Based on Texas's tort law, individuals have the right to sue uninsured at-fault drivers to recover economic, non-economic, and punitive damages for the losses incurred in the accident. While economic damages cover the actual losses incurred due to the crash, non-economic and punitive damages are discretionary, covering intangible losses and punishment for gross negligence.

Claimants should note, however, that even after winning a car accident lawsuit, recovering the awarded amount can be challenging, particularly when the defendant (at-fault party) is indigent or lacks sufficient assets to satisfy the judgment. While the court can seize certain assets to satisfy a judgment, some types of property are legally exempt and cannot be used to pay the debt.

Detailed information on collecting a small claims judgment is available on the Texas State Law Library's Small Claims Cases page.

How To Find Out If the At-Fault Driver Has Insurance in Texas

Individuals can verify an at-fault driver's insurance by:

• Requesting insurance information from the at-fault driver at the crash scene.
• Obtaining a copy of a Texas Peace Officer's Crash Report (CR-3) through the Crash Report Online Purchase System.
• Submitting Form VTR-275 (Request for Motor Vehicle Accident Information) to the Texas Department of Motor Vehicles.
• Using discovery tools, like interrogatories and requests for production, during litigation.

Are Accidents Public Record in Texas?

Yes. Accident-related court records are public documents under the Texas Court Rules and are available to anyone who requests them. Also, Chapter 552 of the Texas Government Code, the state's public records statute, provides for public access to records maintained by law enforcement units.

However, the statute also provides exemptions to public access to protect sensitive information and comply with other applicable privacy statutes. To this end:

• Access to police crash reports is limited to parties involved in the crash, their attorneys, insurers, and a few authorized agencies (§ 550.065 of the Texas Transportation Code).
• Personal information maintained in the Texas motor vehicle database is confidential under the Driver's Privacy Protection Act, even though the driver's name, license number, and license status remain open records.

Can You Go to Jail for Causing an Accident Without Insurance in Texas?

Yes. Per § 521.025 (3) and § 521.457 (f-2) of the Texas Transportation Code, certain repeat uninsured drivers are guilty of a class A misdemeanor if they caused an accident leading to serious bodily injury or death. Offenders are punishable by up to a year in jail or a fine of up to $4,000.

Can You Settle With an Uninsured Driver Out of Court in Texas?

Yes. Victims of a car collision in Texas can settle with the at-fault driver out of court. Such an agreement is enforceable under Texas contract law, provided it satisfies the standard elements of a valid contract.

Can I Get Compensation If I Was Partially at Fault?

Yes. Car crash victims can still receive compensation even if they were partially responsible for a crash. However, per Texas's modified comparative negligence rule, enshrined in § 33.001 of the Texas Civil Practice and Remedies Code, the claimant can only recover damages if they are responsible for the accident by 50% or less. Accident victims are barred from recovery if they are at least 51% at fault in the crash.