How a car insurance claim works in Texas

The hour after a wreck is the worst possible time to be learning how claims work. You are shaken, someone wants your insurance card, and the decisions you make in the next few days — whose insurance you call, whether you file at all, which shop touches your car — quietly set how much of this you end up paying yourself.

The useful thing about Texas is that the process is not improvised. State law puts your own insurance company on a clock, spells out what it has to tell you and when, and draws a hard line between a claim on your policy and a claim on the other driver's. Almost every unpleasant surprise in a car claim comes from not knowing which side of that line you are standing on.

Here's what we'll cover: what to do at the scene and in the days after, the deadlines your insurer has to meet, who pays when the other driver was at fault, what happens when they have no insurance or too little, how repairs and total losses actually get settled, and the honest answer on what filing a claim does to your premium.

At the scene: the information that decides the claim

The Texas Department of Insurance (TDI) starts with safety, not paperwork: "If no one was injured, move out of the road. If someone was injured or the other driver drove away, call the police."

There is one police-report rule worth memorizing, because it can void a coverage you already paid for. TDI: "Call the police if you were hit by a driver who left the scene. Your uninsured motorist coverage won't pay for a hit-and-run accident if you didn't report it to police." In a hit-and-run, the police report is not admin — it is the thing that turns your coverage on.

What TDI tells you to collect:

• The other driver's details. "Take a picture of their insurance card and driver's license. If they don't have an insurance card, ask for their name, phone number, insurance company name, and policy number. Give the other driver your information."
• Pictures. "Get pictures of the other cars involved, including license plates and damages. Also get pictures of street signs and road angles."
• Witnesses. "Ask for names and phone numbers." TDI is blunt about why this matters: "Independent witnesses can help prove fault if you were in an accident caused by another driver. If you don't have witnesses and the other driver denies fault, his or her insurance company might deny your claim."
• The details you'll forget by tomorrow. "Include the location, time of the wreck, weather conditions, and what happened."

TDI also notes that if your car can't be driven, "the police will call a tow truck driver. You can tell them to take it to a car storage lot or body shop of your choice." That choice is yours from the first minute.

After you get home

TDI's list is short: call your insurance company to report the accident, get the name and phone number of the adjuster assigned to your claim, and if you saw a doctor, keep the medical records and bills.

Do it quickly. TDI: "Tell your company about the accident as soon as possible. Most companies have deadlines for filing claims."

Report it even if you intend to claim against the other driver. TDI's guidance for a not-at-fault accident is to file with the other driver's insurance and "Let your insurance company know." There's a second reason to pick up the phone: TDI notes that "Under a law passed in 2021, companies can't renew your policy if you don't cooperate when they reach out to you for information" — and that this holds "even if the other driver reports the claim to your insurance company." Silence after a wreck is not a neutral choice.

The deadlines your own insurer has to meet

This is the part most drivers never find out about, and it changes how a slow claim feels. TDI: "Texas law sets deadlines for insurance companies to act after you file a claim."

On its step-by-step claim page, TDI states them this way:

1. Acknowledgement. "Your company has 15 business days to say it got your claim. The company must also start its review and ask you for any information it needs."
2. Accept or reject. "Your company has 15 business days after getting what it needs from you to tell you if it will pay your claim. If the company rejects your claim, it must say why in writing. The company can extend this deadline by 45 days if they tell you why they need more time."
3. Payment. "After your insurance company agrees to pay all or part of your claim, it must pay within five business days."

TDI adds one catastrophe exception: "TDI can extend these deadlines by 15 more days if there is a weather-related catastrophe." After a large Texas hailstorm or hurricane, a slower claim may be operating under an extended clock rather than a broken one.

One note on precision, because it matters if you're counting days: TDI describes the first deadline as "15 business days" on its claim-steps page and as "within 15 days of getting notice" in its Auto insurance guide. Treat roughly two weeks as the marker, and if your acknowledgement hasn't arrived by then, call and ask where your claim stands rather than trying to litigate the exact count.

Two things about that clock:

• The rejection has to be in writing, with a reason. A denial you can't get a written explanation for is not a normal denial.
• The clock is yours, not the other driver's. TDI is explicit: "The deadlines on this page don't apply if another driver's insurance is paying the claim. But the insurance company must try to settle your claim quickly and fairly." The guide puts it the same way — the prompt payment law "doesn't apply if another driver's insurance company is paying the claim," though "the company must act in good faith."

That single distinction explains most of the frustration drivers feel with a not-at-fault claim.

The other driver caused it. Now what?

The instinct is fair: they hit you, their insurer should pay. TDI agrees on principle — "The other driver's insurance should pay for your car repairs, medical bills, and a rental car" — and then adds the sentence worth reading twice: "Still, there's no guarantee they will pay."

TDI lists what the other company may do:

• "Say their driver wasn't at fault and refuse to pay you."
• "Say both drivers were at fault and want you to pay some of your costs."
• "Say their driver doesn't have enough insurance to pay all your costs."
• "Not return your calls or emails."
• "Take a while to contact you while they wait on their policyholder to respond to their email or call. Their policyholder might never respond."

And the structural reason it happens: "You don't have a contract with the other driver's insurance, so you don't have the same options you would with your own company." You are a claimant to them, not a customer. TDI's advice if they refuse: "ask for their reason in detail and in writing."

The fallback is your own policy — if you bought the right parts of it. TDI: "If you believe the other driver was at fault, but his or her insurance company won't pay your claim, file a claim with your own insurance company. You must have collision coverage to do this." Liability alone will not do it; liability pays other people.

There is a cost and a refund. TDI: "Be aware that if you file a claim with your own company, you'll have to pay a deductible." But you may get it back — "Your insurance company will try to recover the money, including your deductible, from the other driver's insurance and give your deductible back."

When they had no insurance, too little, or drove away

This is what uninsured/underinsured motorist coverage exists for. TDI: "If you have uninsured/underinsured motorist coverage, it will pay if the at-fault driver didn't have insurance or enough insurance to pay your car repairs. It also pays for hit and run accidents if the other driver drove away and you didn't get their insurance information."

On the underinsured case specifically, TDI's guide says that if the other driver's limits aren't enough for your repairs, "your collision or uninsured/underinsured motorist coverage should pay the difference," and for medical bills your insurer "will use either your PIP coverage, medical payments coverage, or your uninsured/underinsured motorist coverage to pay the difference."

Two things follow. First, this coverage is optional in Texas but you can't quietly end up without it. TDI: "Insurance companies must offer you this coverage. If you don't want it, you must tell the company in writing." So if you don't have it, it was declined in writing at some point — worth confirming that's still the decision you want. Second, TDI notes the deductible on uninsured motorist coverage "is usually lower than your collision deductible." If you have never checked whether you carry it, that check is worth more than most of this page.

Getting the car repaired

You choose the shop. TDI states it twice, in two places: "Your insurance company might give you a list of body shops, but you can take your car to any shop you choose," and "Some companies might give you a list of preferred repair shops, but they can't require you to use a shop on its list."

Estimates can be revised. "Your insurance company will give you a repair estimate. If it costs more to repair your car, the body shop will give your insurance company a new estimate. Your company will pay for the extra repairs if it agrees with the estimate." If the shop finds hidden damage, that is a conversation with the adjuster, not the end of the matter.

Two limits worth knowing before you're surprised by them. TDI: "Insurance companies will pay for repairs or replacement of your car only up to its actual cash value. Actual cash value is the cost to replace your car, minus depreciation." And on parts: "The insurance company is only required to pay for parts of like kind and quality to those that were damaged. It doesn't have to pay for original parts from the manufacturer."

The deductible is owed to the shop, not the insurer. TDI: "The insurance company will subtract your deductible from your payment if you used your own insurance. You will owe that deductible to the contractor or body shop."

If they total your car

TDI's test: "If the cost to repair your car is close to or more than its current value, the company will probably decide to total it. This means that, instead of paying to fix your car, the company will pay you the car's value." TDI adds that "some companies might total your car even if the cost to fix it is lower."

What you get paid is the depreciated value, not a replacement: "if your car is 10 years old, the company will pay you the value of a 10-year-old used car. It won't pay to replace your car with a new car that's the same make and model as your totaled car."

You have room to push back, and TDI says so plainly — "If you think your car is worth more than what the insurance company decided, you can try to negotiate." Its suggestions: get quotes from used car dealers, look at prices online and in local ads for similar vehicles, and document special features or custom parts. You can also ask the insurer "what source it used to decide your car's value."

Two more:

• You can keep it. "If you want to keep your car, let the insurance company know as soon as possible. The insurance company will subtract the car's salvage value from the amount it was planning to pay you." TDI warns the car may get a salvage title, will need a new title from the Texas Department of Motor Vehicles before you drive it, and "could be harder to sell or insure in the future."
• A loan can leave you short. "If you still owe money on your car, the amount the company will pay you if it totals your car might not be enough to pay off your loan." That gap is what gap insurance covers — and TDI's own warning is that gap products sold by a dealer or bank "might not be insurance," in which case "TDI can't help if you have a problem with these."

Will filing raise your premium?

The honest answer, in TDI's words: "It depends on the type of claim and how many you file. But, yes, your home and auto premiums can go up if you file claims. You could also lose any discounts you're getting for being claim free."

There are real limits on it, though. TDI says home and auto companies can't charge you more for:

• "Claims you file that the company didn't pay. This includes claims the insurance company denied because your policy doesn't cover the damage."
• "Calling your company or agent to ask questions about your policy or the claims filing process."

That second one matters: asking a question is not filing a claim, and it can't be priced as one.

On being dropped after a wreck, TDI: "Companies probably won't drop you after the first wreck. But if you get in a lot of accidents or get a lot of tickets, you might be charged more." For animal collisions there's a specific protection — "State law doesn't allow your company to drop you if you file a claim for hitting an animal, but it could raise your rate when you renew your coverage."

Before you file a small claim, TDI's advice is arithmetic: "find out how much your deductible is... Also get repair estimates. If the cost of repairs is about the same or less than your deductible, you may decide it's not worth filing a claim."

How long does an accident follow you? TDI doesn't publish a fixed number, and neither will we. What it does explain is the mechanism: "Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. Because most companies use CLUE, they can learn about home or auto claims you've filed, even if the claim was with another insurance company." Rather than guess at a number, look: TDI notes you can get a free copy of your report each year by calling 866-312-8076. What's actually on your record beats any rule of thumb about it.

Does a claim hit your credit score? A claim is not a credit event — it lives in your claims history, not your credit file. Credit does play a separate role in pricing: TDI lists "your credit score" among the things most companies consider, while also stating that an insurance company may not turn you down or charge you more only because of your credit score. If it's the quoting process you're worried about rather than the claim, does getting home insurance quotes affect your credit score covers that ground.

What to do with this

• Report the accident to your own insurer even if it wasn't your fault — and answer their calls, because not cooperating can cost you your renewal.
• Get the police report number for any injury, dispute, or hit-and-run. Without it your uninsured motorist coverage may not respond.
• Check today whether you carry collision and uninsured/underinsured motorist coverage. They are what stand between you and an at-fault driver who won't or can't pay.
• Track the clock. Roughly two weeks to acknowledge, 15 business days to accept or reject once they have what they need (extendable by 45 days with a stated reason), five business days to pay.
• Get a written reason for any denial, from your insurer or the other driver's.
• Do the deductible math before filing a small claim.
• If they total the car, negotiate with evidence — dealer quotes and local listings for a comparable vehicle.

Key facts

• Your insurer is on a clock. TDI: "Your company has 15 business days to say it got your claim," then "15 business days after getting what it needs from you to tell you if it will pay your claim," extendable "by 45 days if they tell you why they need more time," and it "must pay within five business days" after agreeing to pay.
• That clock doesn't cover the other driver's insurer. TDI: "The deadlines on this page don't apply if another driver's insurance is paying the claim. But the insurance company must try to settle your claim quickly and fairly."
• A denial must be in writing. TDI: "If the company rejects your claim, it must say why in writing."
• Claiming on your own policy after someone else's fault requires collision coverage. TDI: "You must have collision coverage to do this" — and "you'll have to pay a deductible," which your insurer may recover and return.
• A hit-and-run needs a police report. TDI: "Your uninsured motorist coverage won't pay for a hit-and-run accident if you didn't report it to police."
• You pick the repair shop. TDI: companies "can't require you to use a shop on its list."
• Payouts are capped at actual cash value. TDI: "Actual cash value is the cost to replace your car, minus depreciation."
• Some things can't raise your rate. TDI: companies can't charge you more for claims "the company didn't pay," or for "calling your company or agent to ask questions."

Sources: Texas Department of Insurance — Auto insurance guide, Steps to getting your home or car insurance claim paid, Were you in a wreck? Tips for auto insurance claims, Accident not your fault? Here's how to deal with the other driver's insurance, Will my premium go up if I file a claim?, My car was totaled! Now what?, Do you need gap insurance for your car?, and FAQ: Auto insurance, claims, coverage issues, and more. TDI's Help Line is 800-252-3439. This page is general information, not legal advice; coverage and claim handling are subject to the terms of your own policy.

Take the next step

Most of what goes wrong in a car insurance claim was decided long before the crash — whether you carried collision, whether you kept uninsured motorist coverage, how big the deductible was, whether anyone ever explained what "actual cash value" would mean for a car your age. A claim doesn't create those gaps. It reveals them.

The time to find them is now, not at the scene. Credify is a licensed insurance agency in Texas, and we compare auto coverage across multiple licensed Texas carriers in one short form, with no obligation; each insurer remains responsible for its own products. If you want to know what to weigh besides the monthly number, how to compare auto insurance in Texas walks through the checks that make two quotes genuinely comparable, and what car insurance is required in Texas explains where the legal minimum stops. If it's the other side of your household you're wondering about, how to file a hail or storm damage claim in Texas covers the property version of this same process. 📞 Talk to Credify 24/7.