My Car Was Hit and Insurance Won’t Pay Texas | What to Do
You did everything right. You called the police, exchanged information, and filed your claim. Now the at-fault driver’s insurance company is refusing to pay—or offering you far less than your repairs cost.
This is more common than you think. Insurance companies often deny or delay valid claims to protect their bottom line. But you have options under Texas law, and you don’t have to accept their decision as final.
We’ll walk you through the specific steps you can take when an insurance company won’t pay your car accident claim. If you need immediate help, our network of Texas personal injury lawyers is ready to review your case.
Why would an insurance company refuse to pay?
Insurance companies use various tactics to avoid paying claims—even when their policyholder was clearly at fault. Here are the most common reasons you might face a denial:
- Disputing liability: The insurer claims their driver wasn’t responsible or that you share some fault. Texas follows a modified comparative negligence rule, which means if you’re found more than 50% at fault, you can’t recover damages. Insurers exploit this by trying to shift blame onto you.
- Insufficient evidence: They may argue you haven’t proven their driver caused the accident. This often happens when there’s no police report, no witnesses, or only minor visible damage.
- Policy exclusions: The at-fault driver’s policy might have lapsed, or they may not have had adequate coverage. In Texas, drivers are required to carry minimum liability coverage of $30,000 per person for injuries and $25,000 for property damage, according to the Texas Department of Insurance. If the driver violated their policy terms, the insurer might deny your claim.
- Lowball settlement tactics: Sometimes insurers don’t outright deny your claim—they just offer an amount that doesn’t cover your actual losses. This is a strategy to make you settle quickly before you realize your car needs more extensive repairs or you develop delayed injury symptoms.
- Claim delays: The insurance company might drag out the investigation indefinitely, hoping you’ll give up or accept less just to move forward.
If you’re facing a lowball offer, our guide on rejecting an insurance offer explains your rights in detail.
What to do if their insurance won’t pay
When an insurance company denies your claim, you’re not out of options. Follow these steps to protect your rights and increase your chances of recovering compensation.
1. Gather strong evidence
Documentation is your strongest weapon against an unfair denial. Start collecting everything that supports your case:
- Photos of all vehicle damage from multiple angles
- Police report with the officer’s assessment of fault
- Witness contact information and statements
- Medical records if you were injured
- Repair estimates from licensed mechanics
- Dashcam footage if available
The Texas Department of Transportation maintains crash records that can strengthen your claim. You can request a copy of your accident report, which often includes the officer’s determination of fault.
2. Request a written explanation
Never accept a verbal denial. Always demand the insurance company’s decision in writing. This documentation is important for two reasons:
First, it forces the insurer to state specific reasons for the denial. Vague phone calls don’t give you anything to challenge. Second, if you later discover the denial was made in bad faith, written documentation becomes evidence.
Under Texas Insurance Code § 542.055, insurers must acknowledge your claim within 15 days and begin their investigation. Then, under § 542.056, they must accept or reject your claim within 15 business days after receiving all documentation they requested.
3. File an appeal with the insurance company
Most insurance companies have an internal appeals process. Review the denial letter carefully—it should outline how to dispute their decision.
Submit your appeal in writing and include any additional evidence that addresses their stated reasons for denial. Set a deadline for their response (typically 30 days is reasonable).
4. Use your own insurance policy
If you have collision coverage or uninsured/underinsured motorist (UM/UIM) coverage, you can file a claim with your own insurer. This doesn’t mean you’re admitting fault—it’s simply using coverage you’ve paid for.
Your insurance company will pay for your repairs, then pursue the at-fault driver’s insurer through a process called subrogation. You may need to pay your deductible upfront, but your insurer can recover it later.
According to the Texas Department of Insurance, UM/UIM coverage is not required in Texas, but it’s highly recommended. If you don’t have this coverage, now is the time to consider adding it to protect yourself in the future.
5. File a complaint with Texas Department of Insurance
If the insurance company is acting unreasonably, file a formal complaint with the Texas Department of Insurance (TDI). TDI regulates insurance companies operating in Texas and investigates unfair claim practices.
While a complaint won’t force the insurer to pay your claim, it creates an official record of their behavior and can prompt a regulatory review. Insurance companies don’t want multiple complaints on their record.
6. Speak with a Texas personal injury lawyer
An attorney can level the playing field when an insurance company won’t cooperate. Our network includes experienced lawyers who handle denied claims throughout North Texas.
We can connect you with attorneys in your area who offer free consultations. They’ll review your case, explain your legal options, and fight to get you the compensation you deserve.
Can you still recover compensation?
Yes. Even if the at-fault driver’s insurance company denies your claim, you have multiple paths to recovery.
Your lawyer can file a personal injury lawsuit directly against the at-fault driver. You don’t need the insurance company’s permission to pursue legal action. In Texas, you have two years from the date of the accident to file a lawsuit under the statute of limitations.
Many insurance companies change their stance once a lawsuit is filed. The cost of defending a claim in court often motivates them to offer a fair settlement.
If you’re in the Dallas-Fort Worth area, our personal injury lawyer network in Frisco and personal injury attorneys in Allen are ready to help. These attorneys work on contingency, meaning you don’t pay unless they win your case.
What if the insurance company is acting in bad faith?
Insurance companies in Texas have a legal duty to handle claims fairly and promptly. When they violate this duty, it’s called “bad faith.”
Common bad faith insurance practices include:
- Delaying claim investigations without valid reasons
- Misrepresenting policy language to deny coverage
- Failing to conduct a reasonable investigation
- Not responding to your communications
Texas Insurance Code Chapter 542 allows you to sue an insurance company for bad faith practices. If successful, you can recover not just your claim amount, but also:
- Additional damages for financial harm caused by the delay
- Attorney’s fees
- Court costs
- In some cases, punitive damages
Bad faith claims are complex and require proving the insurer’s intentional wrongdoing. An experienced attorney will know how to build this case effectively.
What if the other driver has no insurance?
📊 Texas uninsured driver statistics: According to the Insurance Research Council, approximately 14.1% of Texas drivers were uninsured as of 2022—well above the national average. That’s roughly 1 in 7 drivers on Texas roads without coverage.
| State | Uninsured Rate | Ranking |
|---|---|---|
| Texas | 14.1% | 8th highest |
| National Average | 12.6% | — |
| Oklahoma | 25.9% | Highest |
| New Jersey | 3.1% | Lowest |
If the at-fault driver has no insurance, your recovery options depend on your own coverage:
Uninsured motorist coverage: If you have UM coverage, your own insurer will compensate you up to your policy limits. This is the primary protection against uninsured drivers.
Personal lawsuit: You can sue the uninsured driver directly, but recovery is difficult if they lack assets. Most uninsured drivers can’t afford insurance precisely because they have limited income or resources.
Civil judgment: Even if you win a lawsuit and receive a judgment, collecting money from someone with no insurance or assets is challenging. The court can order wage garnishment, but this process takes time and may yield minimal recovery.
How long do you have to file a claim in Texas?
⏰ Important deadline: Texas has a two-year statute of limitations for personal injury and property damage claims. This deadline starts from the date of your accident.
If you miss this deadline, you lose your right to sue—regardless of how strong your case is or how clearly the other driver was at fault.
Here’s why acting quickly matters:
- Evidence disappears over time (witnesses forget details, surveillance footage is deleted, physical evidence deteriorates)
- Insurance companies are less willing to negotiate as time passes
- Your own memories of the accident fade
- Medical records become harder to obtain
We often see people wait too long, thinking the insurance company will eventually do the right thing. Don’t make this mistake. If an insurer is stalling your claim or you’re approaching the one-year mark since your accident, contact a lawyer immediately.
Texas courts have very few exceptions to the two-year rule. In rare cases involving minors or cases where the injury wasn’t immediately discoverable, different deadlines may apply, but these situations are uncommon.
Should you accept a low settlement offer?
Insurance adjusters are trained negotiators working to minimize payouts. Their first offer is almost never their best offer—and it’s usually far below what your claim is actually worth.
Why insurers lowball initial offers:
- They’re testing whether you know your claim’s value
- They hope you need money quickly and will accept less
- They count on you not consulting a lawyer
- They assume you don’t understand all your damages
Hidden costs insurers don’t include in early offers:
- Diminished value (your car is worth less after repairs)
- Future medical treatment if you were injured
- Lost wages from missed work
- Rental car costs during repairs
- Out-of-pocket expenses
Before accepting any settlement, have an attorney review the offer. Most consultations are free, and you’ll gain clarity on whether the offer is fair. For more guidance on this topic, see our article on rejecting an insurance offer.
How a lawyer can help if insurance won’t pay
When an insurance company denies or undervalues your claim, an attorney becomes your advocate. Our network includes experienced lawyers who handle denied claims throughout North Texas. They work on contingency—you pay nothing unless they recover compensation for you.
Get help if your claim was denied
Insurance companies count on you not knowing your rights. They hope you’ll accept their denial and move on. Don’t let them win.
Whether you’re dealing with a denied claim, a delayed investigation, or a lowball offer, our network of Texas attorneys is ready to fight for you. Time is limited under Texas law—if your claim was denied or you’re not getting fair treatment, reach out today.
Find a Texas personal injury lawyer near you and get the help you deserve.
FAQs
What if insurance denies my car accident claim?
Request a written denial stating specific reasons, file an appeal with the insurer, and use your own collision or uninsured motorist coverage if available. You can also file a complaint with the Texas Department of Insurance and consult with an attorney to explore legal action.
Can I sue if insurance refuses to pay?
Yes. You can file a lawsuit directly against the at-fault driver within two years of your accident under Texas law. The insurance company doesn’t control whether you can pursue legal action.
How long does an insurance dispute take?
Simple appeals through the insurance company typically take 30-60 days. If you file a lawsuit, the process can take 6-18 months depending on case complexity and court schedules. Working with an attorney can help avoid unnecessary delays.
What is bad faith insurance in Texas?
Bad faith occurs when an insurance company violates its duty to handle claims fairly and promptly. Examples include unreasonably delaying investigations, denying valid claims without proper investigation, misrepresenting policy terms, or failing to communicate. Texas Insurance Code Chapter 542 allows you to sue for additional damages beyond your original claim when insurers act in bad faith.
