If your car was hit in Texas and the other driver was at fault, their insurance should cover your damages.
But what if they refuse to pay or delay the payment?
It can be a maddening experience, especially when you’re confident the other driver is responsible.
Insurers often delay or deny claims due to disagreements over fault, insufficient evidence, or even bad faith practices.
Whatever their reasoning, the first step here is to consult a lawyer. At No Bull Law, we specialize in cutting through the red tape and fighting for the compensation you deserve. If you’d like personalized advice, schedule a free legal consultation to get the clarity you need to move forward with confidence.
We’ll also explain exactly what you need to do next to turn the situation around.
If the other driver is clearly at fault, the insurance company must pay sooner or later. Right?
So, why would they bother stalling?
Well, they may be acting in bad faith, which we’ll cover further down, but chances are they have legitimate reasons:
- Investigation Still Pending: The insurer may initially deny your insurance claim while they gather the police report, medical records, and other evidence.
- At-Fault Driver Disputes Responsibility: The at-fault driver may dispute responsibility, forcing the insurance company to side with their client until further evidence proves otherwise.
- Disputing Liability: The insurer may argue that the at-fault driver is either fully or partially not at fault. In this case, they may try to shift the blame onto you or another party to reduce or deny the payout.
- Insurance Limits Reached: The at-fault driver’s insurance policy may have reached its maximum payout, especially in multi-vehicle driving accidents, leaving no funds to settle additional claims (including yours).
- Policy Exclusions: The insurer may deny your insurance claim if the at-fault driver was using their car for activities not covered by the policy, such as unauthorized business purposes or illegal activities.
- Lapsed or Canceled Insurance: If the at-fault driver’s insurance policy was canceled or expired due to non-payment before the accident, the insurer isn’t obligated to cover the damage. This effectively leaves you dealing with an uninsured driver.
- Insufficient Evidence: The insurer may refuse to pay if you haven’t provided enough evidence, such as photos, medical records, or witness statements, to establish fault and damages.
- Underestimating Your Injuries: Insurance companies may downplay the severity of your injuries or claim that some treatments weren’t necessary to reduce the amount they have to pay you.
- Blaming Pre-Existing Conditions: Insurance adjusters might try to blame your injuries on pre-existing medical conditions rather than the accident, which could also lead to a claim denial or reduced payout.
- You Missed Deadlines: If you miss the deadlines for reporting the accident to the insurer or authorities, the car insurance company may reject your claim outright.
- Fraud Concerns: If the insurer suspects fraud, like exaggerated damage or a staged auto accident, they may hold off on payment until they can fully verify your claim.
If you consult a car accident lawyer early, they can help you gather all the necessary evidence, ensure you meet critical deadlines, and resolve any disputes with insurance adjusters — lowering the risk of claim denial.
A lawyer can also help you discern whether they’re applying questionable practices.
Some insurance companies might use bad faith tactics to coerce you into a lower settlement or see if they can get away with not paying at all. They are more likely to try these when you don't have a lawyer.
When you have a lawyer, they will advocate on your behalf and possibly threaten legal action, putting the insurers at risk.
Some bad faith tactics include:
- Unreasonable Delays: Insurance companies may drag out investigations or claims, extending timelines without valid reasons, hoping you’ll lose patience.
- Lowball Offers: They might offer settlements much lower than what your claim is worth, banking on your financial stress or frustration to push you into agreeing.
- Pressure to Settle Quickly: Insurers might pressure you into accepting a quick, low settlement offer before you’ve had a chance to fully evaluate your damages or injuries.
- Misrepresentation of Coverage: Insurance companies purposefully distort certain insurance information, mislead you about what’s covered, or deliberately misinterpret provisions to deny or undervalue your claim.
- Failure to Investigate: Some insurers intentionally avoid investigating driving accidents properly, leading to unfair claim denials due to a lack of effort.
Do any of these scenarios look familiar?
Then read on to figure out your next steps.
Whether the other driver’s insurance company is acting in bad faith or has legitimate claims, you’ll want to take back control of the situation.
These are the next steps you should take as the accident victim:
If an insurer refuses to pay, don’t go it alone.
A car accident attorney can evaluate your case, explain your options, and help you challenge the insurer’s decision.
And don't worry — we understand how stressful it is when an insurer won't pay, especially when financial strain is piling up.
That’s why most personal injury lawyers, like the team at No Bull Law, work on a contingency fee basis — you don’t pay a thing unless we win your car accident case.
In Texas, attorneys typically collect 33% to 40% of the final settlement (but studies show car accident victims typically end up with a 3-3.5x higher payout with a lawyer present).
2. Review the Denial Letter
Next, sit down with your lawyer to analyze the insurer’s denial letter.
Your lawyer will help you understand the reasons for the refusal, identify any inaccuracies or bad faith tactics, and ensure you meet appeal deadlines.
3. Ask for an Explanation
If you’re unsatisfied with the denial letter, which often provides only a broad overview, ask your personal injury lawyer to request a more detailed explanation.
This can uncover key evidence or documents, such as claim adjuster notes, investigation reports, or policy interpretations the insurer relied on to make their decision.
Your lawyer will use this information to spot inconsistencies, address missing evidence like accident photos or medical records, and expose potential bad faith tactics to strengthen your car accident case for appeal or legal action.
4. Gather Additional Evidence
Using the explanation as a guide, you can collect the evidence needed to strengthen your case.
For instance, if the insurer claims there’s not enough proof of your injuries, updated medical records or a doctor’s statement can make a big difference.
Your lawyer will help you figure out what’s most important — whether it’s accident scene photos, expert opinions, or witness statements — to push back against the insurer’s reasoning.
5. Don’t Give Up
Your lawyer will use the newly collected evidence to counter their denial reasons directly and strengthen your claim. By addressing the insurer’s specific arguments and submitting on time, you’ll significantly improve your chances for reconsideration.
6. Use Your Own Insurance Policy
If your appeal doesn’t succeed, you can file a claim under your own collision insurance coverage or uninsured motorist/underinsured motorist (UM/UIM) coverage (if part of your policy).
Your lawyer will guide you through the process, using documents like the denial letter, police report, and property damage estimates to support your claim. They’ll also handle any disputes to guarantee you get the benefits you’re entitled to.
Note: While Texas law requires insurers to offer uninsured motorist/underinsured motorist coverage, it’s optional, and you can waive it in writing.
7. Negotiate or Escalate
Let your lawyer handle the back-and-forth with the at-fault driver’s insurer.
Your lawyer knows how to deal with insurer stalling tactics and will prevent them from communicating with you directly, shielding you from any attempts at manipulation or pressure.
If the insurer still won’t budge, your lawyer can turn up the heat by reminding them of the risks of bad-faith practices. They can threaten regulatory complaints, lawsuits, or punitive damages, often forcing insurers to reconsider.
8. File a Complaint
If the insurer remains uncooperative, your lawyer can help you file a complaint with the Texas Department of Insurance (TDI).
The Texas Department of Insurance can investigate the issue and pressure the insurer to resolve your car accident claim, reminding them of the regulatory consequences if they keep denying or delaying payment.
Your lawyer can guide you through the process of submitting the complaint, which involves providing details like your policy number, accident claim number, and a description of the issue.
9. Consider Mediation or Arbitration
If you're aiming for a quicker resolution, your lawyer may suggest mediation or arbitration, which is faster and less costly than going to trial.
For example, in mediation, a neutral third party helps you and the insurer reach an agreement, often saving time and costs.
10. Prepare for Litigation
If things don’t go according to plan, your personal injury lawyer may suggest filing a personal injury lawsuit against the at-fault Texas driver to recover compensation.
In Texas, you have two years from the car accident date to file.
A skilled attorney will file your case on time, prepare it thoroughly, and potentially secure 3 to 3.5 times more compensation than you could on your own.
If you win the judgment, your lawyer will then negotiate with the at-fault driver’s insurer to collect the payment or, if necessary, file a second lawsuit to hold the insurance company accountable.
While your lawyer prepares for litigation, it's important to consider how to manage financially in the meantime.
How to Cope Without Insurance Payments While You Wait
While your personal injury lawyer and the insurer resolve your claim, you might struggle to pay your bills in the meantime.
Try the following strategies to ease the financial burden:
- Use Personal Injury Protection (PIP) or Medical Pay (MedPay) Coverage: If you were injured in a car accident and your auto insurance policy includes PIP or MedPay, you can use these funds to cover immediate medical bills while the car accident claim is in dispute.
- Negotiate with Medical Providers: Speak with your healthcare providers about delaying payment until you receive a settlement. Many are willing to wait if they know the payment is on its way.
- Arrange Installment Payments: If you’re facing repair costs, ask your mechanic or repair shop if you can set up a payment plan. This way, you don’t have to pay everything upfront.
- Leverage Loss of Use Coverage: If your car is damaged or needs to be replaced, loss of use coverage can provide a rental car while yours is repaired. Rental car coverage usually comes with higher insurance premiums.
- Tap into Uninsured/Underinsured Motorist Coverage: If available, this coverage can help bridge the gap while you pursue a settlement from the at-fault driver’s insurer.
We highly recommend seeking guidance from your personal injury attorney in this situation as well. They can identify other financial resources and negotiate with medical providers or repair shops on your behalf.
Book a free consultation with us to explore your options and get the guidance you need without any upfront costs.
4 FAQs Related to Texas Car Insurance
Here are the answers to some common questions we get about Texas' auto insurance regulations:
Texas follows an at-fault system, meaning the driver responsible for the car accident is liable for damages. Drivers must carry liability insurance, which covers:
- $30,000 for bodily injury to one person
- $60,000 for bodily injury to multiple people
- $25,000 for property damage
Optional add-ons include:
- Collision coverage (for vehicle repairs)
- Comprehensive coverage (for non-collision events like theft)
- Uninsured/underinsured motorist protection (if the at-fault driver lacks sufficient coverage)
- Personal injury protection (PIP) (covers medical expenses and lost wages, regardless of fault)
Texas also uses a modified comparative fault rule, allowing the accident victim to recover damages if they are 50% or less at fault. However, the auto insurance adjuster will reduce the victim’s compensation based on the percentage of fault they assign to them.
For example, if you’re 20% at fault in a car accident with a $10,000 settlement, your compensation would be reduced to $8,000.
One thing to keep in mind — if you need to pursue legal action, you’ll have to sue the at-fault Texas driver directly.
2. How Long Does a Car Insurance Company Have to Pay a Claim in Texas?
In Texas, insurers are legally required to settle claims within 35 business days of receiving them.
This timeline includes three key deadlines:
- They must acknowledge the claim within 15 business days
- Decide to approve or deny it within 15 business days after receiving all required documentation
- Issue payment within 5 business days if the claim is approved.
Delays beyond these deadlines without valid reasons may indicate bad faith practices.
3. What Should I Do If the At-Fault Driver’s Insurance Doesn’t Fully Cover My Damages?
In Texas, if the at-fault driver's insurance doesn't fully cover your damages, you can file a claim under your own uninsured motorist/underinsured motorist coverage, if available.
While suing the driver directly is an option, Texas law provides substantial protections for personal assets, making it challenging to collect additional compensation.
For instance, Texas homestead laws protect a primary residence from forced sale to satisfy most debts and judgments.
Consulting a Texas car accident lawyer can help you assess your most realistic and viable options.
4. Will Insurance Cover a Hit-and-Run in Texas?
Yes, but it depends on the situation.
If the hit-and-run driver is never found or lacks liability coverage, your uninsured motorist insurance can cover your injuries, but you must report the auto accident to the police first.
Collision insurance coverage can also help with vehicle repairs, regardless of fault.
On the other hand, if the driver is identified and has liability insurance, you can file a claim against their insurer.
But if you believe it was a drunk driving accident, the case can become more complicated due to the need for additional evidence, potential punitive damages, and insurer pushback. In this situation, it’s best to notify the police and report your suspicion that the other driver was intoxicated, so that it’s on the record.
In all cases, a car accident attorney can help you navigate the claims process, gather necessary evidence, and handle insurance disputes.
When Insurers Stall, No Bull Law Accelerates Your Claim
Dealing with an insurer that won’t pay can feel like hitting a brick wall, but it doesn’t have to be a dead end.
In Texas, there’s a clear path forward, and with the right legal team, you can knock down those barriers with ease.
Let No Bull Law’s personal injury lawyers go head-to-head with the insurers, handling the legal challenges while you focus on getting your life back on track.
Sounds good?
Contact our personal injury law team today for a free consultation.
