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Texas Insurance and Claims: Which Policy Actually Responds

How a Texas claim is filed, investigated, valued, paid or denied, what PIP and uninsured motorist coverage really do, and the deadlines your own insurer is bound by.

  • Written by the National Claim Network content team
  • Legal review: not performed — general information only
  • Last reviewed: 21 August 2026
  • Jurisdiction: Texas

The short answer

Texas is an at-fault state, so the other driver’s liability insurer pays if they caused the crash. Your own policy still matters enormously: PIP and uninsured/underinsured motorist coverage must both be offered to you and are included unless you rejected them in writing.

PIP

Personal injury protection, and why you may have it without knowing

An insurer may not issue a Texas auto policy without providing personal injury protection. It pays regardless of fault, and it is the fastest money in most claims.

What it covers

Medical expenses and, typically, a portion of lost income, for you and occupants of your vehicle, regardless of who caused the crash.

The statutory floor

An insurer need not offer more than $2,500 per person as the mandatory coverage, though higher limits can be bought.

Rejecting it

You can decline PIP, but only in writing — and that written rejection carries forward to renewals and reinstatements.

Check before assuming

Many people who believe they have no PIP simply never rejected it. The declarations page settles it in seconds.

Tex. Ins. Code § 1952.152, § 1952.153.

UM and UIM

The coverage that matters most when limits run out

Uninsured and underinsured motorist coverage must also be offered, at least at the statutory liability limits, and again applies unless rejected in writing.

Uninsured motorist responds when the at-fault driver has no insurance or is never identified — which is why it is usually the only route to recovery in a hit and run.

Underinsured motorist pays the difference: your damages, reduced by what is recovered or recoverable from the at-fault driver’s insurer. Given that the Texas minimum is $30,000 per injured person, UIM is frequently the only meaningful coverage in a serious injury claim.

Tex. Ins. Code § 1952.101, § 1952.106.

Insurer deadlines

What your own insurer is actually required to do, and when

The Texas Prompt Payment of Claims Act sets hard timelines — but only for first-party claims, meaning claims on your own policy such as PIP or UM/UIM. It does not govern a liability claim against the other driver’s insurer.

Step Deadline
Acknowledge the claim, begin investigating, request what it needs 15th day after notice of claim
Accept or reject the claim in writing 15th business day after receiving all requested items
Extension, with written reasons Up to 45 additional days
Pay an accepted claim 5th business day after notice of acceptance
Penalty if delayed beyond 60 days 18% per year on the claim amount, plus reasonable attorney’s fees

Tex. Ins. Code §§ 542.055–542.060; scope defined at § 542.051(2).

How a claim moves

The order things actually happen in

01

Report

Notify your own insurer promptly — usually a policy condition — and open the liability claim with the at-fault driver’s insurer. Get a claim number for each.

02

Investigate

The adjuster obtains the CR-3, statements and photographs, and forms a view on fault. This is where the fault percentage starts to be built.

03

Treat and document

The claim is not ready to value until treatment reaches a stable point, because until then the future medical picture is unknown.

04

Demand

Records, bills, wage loss and the narrative are assembled and a demand is made against the available limits.

05

Negotiate or file

Settlement or, where the deadline is close or the offer is inadequate, filing suit within the two-year limitation period.

Common denial reasons

Five reasons claims get reduced or refused

Disputed fault

If your share is pushed above 50%, the claim is barred outright. Below that, every point costs you a percentage of the recovery.

Treatment gaps

A delay before the first appointment, or gaps afterwards, is read as evidence that the injury was minor or unrelated.

Pre-existing conditions

Imaging findings attributed to degeneration rather than the crash. A documented baseline before the crash is the answer.

Exhausted limits

Not a denial so much as a ceiling. When the at-fault policy is exhausted, UIM on your own policy is the next question.

Late notice

Most policies require prompt notice. Delay can jeopardise first-party coverage independently of the underlying claim.

Common questions

Questions people ask

Do I have PIP in Texas?

Probably, unless you rejected it in writing. Texas insurers must provide personal injury protection unless the named insured declines it in writing, and that rejection carries forward to renewals. Check your declarations page.

What is the difference between UM and UIM?

Uninsured motorist responds when the at-fault driver has no coverage or is never identified. Underinsured motorist responds when they have coverage but not enough, and pays your damages reduced by what is recovered or recoverable from their insurer.

Does the Prompt Payment Act apply to the other driver’s insurer?

No. Chapter 542, Subchapter B applies to first-party claims — claims you make on your own policy. A third-party liability claim against the other driver’s insurer is not governed by those deadlines.

What happens if my damages exceed the other driver’s limits?

Recovery from that policy is capped at its limits. Underinsured motorist coverage on your own policy is designed for exactly that gap, which is why the written-rejection rule matters so much.

Should I give the other insurer a recorded statement?

You are not required to give a recorded statement to another driver’s insurer, and whether to do so in a particular situation is a question for an attorney licensed in Texas. Anything you say about fault or symptoms becomes part of the file.

Sources

What this page is built on

Every Texas rule stated here is taken from the primary source named below. The Texas statutes are published free by the Texas Legislative Council.

Tex. Ins. Code §§ 1952.101, 1952.106Tex. Ins. Code §§ 1952.152, 1952.153Tex. Ins. Code §§ 542.051–542.060Tex. Transp. Code § 601.072Texas Department of Insurance

Keep reading

Where to go next

Texas Rules

Deadlines, the fault ceiling, coverage minimums and reporting duties.

Open the guide

After a Crash

The first hour, the first week, and what Texas law requires at the scene.

Open the guide

Fault & Evidence

How Texas apportions responsibility, and what evidence decides it.

Open the guide

Injuries

Common crash injuries and how the medical record becomes evidence.

Open the guide

Settlements

What a claim is built from, and what reduces it.

Open the guide

Accident Types

How the kind of crash changes fault, evidence and value.

Open the guide

Editorial information

Who wrote and checked this page

  • Written by: National Claim Network content team
  • Legal review: not performed — general information only
  • Medical review: not performed — general information only
  • Last reviewed: 21 August 2026
  • Next scheduled review: 21 February 2027
  • Jurisdiction: Texas

Spotted something wrong or out of date? We correct errors and log the change. See our correction policy and about page.

Next steps

Not sure which policy responds?

Read the Texas rules that apply, or see how a request for attorney review works. General information only, not legal advice.