You were in a wreck. Maybe it was a tap in a parking lot, maybe it was worse. Once everyone is safe, the questions start: whose insurance pays, will my rate go up, and for how long? It is stressful, and the answers you find online often contradict each other.
We are an independent agency in Friendswood, and we help clients through this regularly. This guide walks through what Texas law actually says, from the scene to the renewal notice, with each rule linked to its source. It's the companion to our complete guide to Texas auto coverage.
The first hour: what Texas law asks of you at the scene
The short answer: Stop, help anyone who is hurt, move off a freeway if the cars still drive safely, and exchange names, addresses, registration and insurance details, because Texas law requires each of those steps.
Texas spells out the basics in Transportation Code chapter 550. Under §550.022, a driver in a crash that damages another attended vehicle must stop at or near the scene and stay until the information exchange is done.
There's a freeway exception worth knowing. Under §550.022(b), if the crash is on a freeway main lane, ramp or shoulder in a metro area and every car can be driven safely, each driver must move to the frontage road, a cross street or another safe spot first. In plain English: get out of traffic, then talk.
Under §550.023, you must give your name, address, vehicle registration number and insurance company, show your license if asked, and provide reasonable help to anyone injured, including arranging a ride to medical care when it's clearly needed. If you hit a parked car with nobody around, §550.024 requires you to find the owner or leave a written note with your information.
The Texas Department of Insurance's wreck tips (updated September 2025) add the practical part: call police if someone is injured or the other driver leaves, photograph the cars, plates, damage and street signs, and photograph the other driver's insurance card and license.
Crash reports: the CR-3, and what happened to the "blue form"
Under §550.062, an officer who investigates a crash that causes injury, death or at least $1,000 in damage to one person's property must file a written report within 10 days. That officer's report is the CR-3, and TxDOT sells copies through its online purchase system for $6, or $8 certified.
Many people remember the driver's "blue form," the CR-2. TxDOT says the retention period for all CR-2 forms expired January 1, 2019, and it no longer keeps them or provides the form. If police don't come to a minor crash, your photos, notes and witness names become your record.
How fault works in Texas, and why it decides whose insurer pays
The short answer: Texas is an at-fault state, so the driver responsible pays through their liability coverage, and you can recover from the other side as long as you are 50% or less at fault, minus your share.
Texas uses proportionate responsibility. Under Civil Practice and Remedies Code §33.001, a claimant can't recover damages if their percentage of responsibility is greater than 50 percent. In plain English: at 50% or less, you can still recover, reduced by your share. At 51%, you recover nothing from the other side.
Who decides the percentages? In a claim, the insurance companies do, based on the report, photos, statements and damage. TDI's complaint page is clear that the department doesn't determine fault in accidents. If you disagree with a fault decision, give the adjuster more evidence, and talk to an attorney if injuries or large amounts are involved.
Timing matters too. Under Civil Practice and Remedies Code §16.003, a lawsuit for personal injury or property damage generally must be filed within two years after the cause of action accrues. Most claims settle long before that, but the clock is real.
Your insurer or theirs? Choosing where to file
The short answer: If the other driver caused the crash, their liability insurer should pay your repairs, medical bills and a rental, but filing with your own collision, PIP or UM/UIM coverage is often faster when they stall or dispute fault.
TDI's auto insurance FAQ puts it simply: if the other driver was at fault, their insurance should pay for your repairs. If that company refuses because it doesn't agree its driver was at fault, you can file with your own company, but only if you carry collision. Your company will usually pursue the other insurer, and if it collects, you'll probably get your deductible back.
| Question | Other driver's liability insurer | Your own policy |
|---|---|---|
| Who decides? | Their company, which owes its duty to its own policyholder. | Your company, under your contract. |
| Deductible? | None if they accept fault. | Collision deductible applies; often refunded if your insurer recovers it. |
| Chapter 542 deadlines? | No. Those clocks cover first-party claims. | Yes. 15 days to acknowledge, 15 business days to decide, 5 business days to pay. |
| Medical bills? | Through their bodily injury liability, usually at settlement. | PIP pays without regard to fault, within 30 days of proof. |
| If they're uninsured or flee? | Nothing to claim. | UM/UIM, if you didn't reject it in writing. |
Here's why that third row matters. Insurance Code chapter 542 defines a "claim" as a first-party claim by an insured.
Your own company must acknowledge your claim and start investigating within 15 days (§542.055), accept or reject it within 15 business days after receiving what it needs (§542.056, with up to 45 more days if it explains why), and pay within five business days of approval (§542.057). Late payment can cost the insurer 18% a year in interest plus attorney's fees (§542.060).
In plain English: those deadlines protect you against your own insurer, not the other driver's. That's one reason PIP matters. Under Insurance Code §1952.155 and §1952.156, PIP benefits are payable regardless of fault and are due within 30 days of satisfactory proof. TDI also notes that uninsured motorist coverage pays for hit-and-run crashes.
Repairs, rentals and the value your car loses
The short answer: You choose the repair shop, your own policy generally doesn't pay for diminished value on a properly repaired car, and a loss-of-value claim belongs in a liability claim against the at-fault driver's insurer.
You don't have to use the insurer's preferred shop. TDI's wreck tips say a company may give you a list of body shops, but you can take your car to any shop you choose. A rental is paid by the at-fault driver's insurer, or by your own policy only if you bought rental reimbursement coverage.
Diminished value is the loss in resale value a car suffers once it has a crash history, even after a good repair. In American Manufacturers Mutual Insurance Co. v. Schaefer (October 17, 2003), the Texas Supreme Court held that the Texas standard personal auto policy doesn't require your insurer to pay diminished value when your car has been damaged but adequately repaired.
The same opinion quotes the Texas Insurance Commissioner's position that an insurer may be obligated to pay a third-party claimant for loss of market value in a liability claim. In plain English: ask the at-fault driver's insurer, not your own. Document the pre-crash condition and get a written valuation if the amount is significant.
How an accident affects your premium, and what Texas law limits
The short answer: Texas lets insurers price your claims history, and each company decides how much and how long an at-fault accident counts, but state rules block rate changes based solely on unpaid claims and limit nonrenewals for not-at-fault accidents.
TDI lists your claims history among the factors that set auto prices on its cost factors page (updated September 2026). Each insurer files its rates and rating manuals with the department under Insurance Code §2251.101. We are not aware of a Texas statute that sets one look-back period for accident surcharges, so how long an accident counts varies by company.
Here's what Texas does limit:
Unpaid claims
Under Insurance Code §1953.051(b), a personal auto rating plan can't raise your premium solely because of a claim that isn't paid or payable under your policy.
Not-at-fault accidents
Under 28 TAC §5.7016, a not-at-fault accident can't be the sole reason for a nonrenewal unless you have two or more in a 12-month period.
Weather and animals
The same rule bars nonrenewal based solely on non-collision weather claims like hail or flood, or on hitting an animal.
After 60 days
TDI's consumer bill of rights says a policy in force 60 days or more can only be canceled for listed reasons, like nonpayment or fraud.
Notice what's missing. These rules limit nonrenewals and unpaid-claim surcharges; we haven't found a Texas rule that flatly bars an insurer from pricing a not-at-fault accident it paid on. The cleanest summary is in TDI's personal auto consumer bill of rights, which says your company can't change your premium solely because of a claim that isn't paid or payable.
For contrast, the one surcharge Texas mandates by length is for intoxication offenses: §1953.052 requires a surcharge for up to three years after a DWI-type conviction. And TDI's FAQ offers some comfort on renewals: companies probably won't drop you after a first wreck.
Should you report a small accident at all? Tell your insurer promptly. TDI's auto insurance guide notes most companies have deadlines for filing claims, and a late report can complicate a claim that turns out bigger than it looked. Reporting isn't the same as collecting, and an unpaid claim can't on its own raise your rate.
Accident forgiveness: what it is and what it isn't
The short answer: Accident forgiveness is an optional feature some carriers offer that keeps a first at-fault accident from raising your rate with that company, but it isn't required by Texas law and doesn't follow you to a new insurer.
Every company that offers it writes its own terms. Before you count on it, ask these questions:
- Is it included or extra? Some versions are earned after years claim-free; others are sold as an add-on.
- Which accidents qualify? Usually the first at-fault accident in a set period, sometimes with a dollar limit.
- Who on the policy is covered? Ask how it treats a newly licensed teen driver.
- What happens if you switch? Forgiveness is a promise from the company that wrote your policy. A new company will weigh the accident by its own rules.
That last point is why forgiveness and re-shopping can pull in opposite directions. If your current company forgave the accident, its renewal may already be the best number available. We can check that before you move anything.
Re-shopping after an accident: how carriers soften the landing
The short answer: Because each carrier weighs the same accident differently, comparing the field before your renewal is often the most effective way to soften a surcharge without cutting the coverage that protects you.
In our experience, one at-fault accident can barely move the price at one carrier and surcharge heavily at another. That spread is exactly where an independent agency earns its keep. We compare Geico, Progressive, Liberty Mutual and Safeco at identical limits, and we re-confirm which carriers can write your policy before every quote.
To make the comparison fast and honest, have these ready:
- The crash report or claim number, plus the date of the accident.
- The fault decision, if your insurer has made one, and what was paid.
- Your current declarations page, so we compare the same limits.
- Your renewal notice, ideally a few weeks before it takes effect.
Be complete on applications. Every carrier asks about recent accidents, and leaving one out can unwind a policy later. And don't offset a surcharge by cutting the coverage that protects you: dropping to 30/60/25, rejecting UM/UIM or PIP, or removing comprehensive mostly lowers what you have. Our guide to the 30/60/25 minimum explains why.
When we re-shop coverage for clients, they save on average about $500 a year. Statewide pricing patterns, including how a recent accident shifts a profile, are in our Texas rates by driver profile page. For more levers, see our 2026 guide to lowering Texas auto rates and our list of savings that keep your protection intact.
If the accident involved a new driver in your household, our guide to insuring a teen driver in Texas covers how carriers treat young drivers. League City commuters can also read our League City car insurance guide for the I-45 side of things, and our auto insurance page explains how a quote with us works.
The bottom line
An accident is stressful, but it doesn't have to define your premium for years. At the scene, follow the Texas steps and document everything. Afterward, know whose insurer owes what, use your own collision, PIP or UM/UIM when the other side stalls, and remember that chapter 542's deadlines apply to your own company.
On the premium side, Texas lets insurers price an at-fault accident, but it limits unpaid-claim surcharges and not-at-fault nonrenewals, and every carrier weighs the same accident differently. That makes the renewal after an accident the right time to compare. Our car insurance in Friendswood explains how we run that comparison locally.
Send us your renewal notice and declarations page, and we'll show you how each carrier we represent prices your record. (832) 703-1289.
Last reviewed by the Watson Insurance team on October 2, 2026. Statutes and TDI guidance are re-verified before every update, and this page is refreshed quarterly. Educational only, not personalized insurance or legal advice.
