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Texas Car Insurance Claim Laws

How long insurers have to handle your car insurance claim in Texas, when a car counts as a total loss, and what to do if the insurer falls behind.

Last reviewed October 24, 2026 by Ali Ahmad, MyAutoTriage editor.

Short answer

In Texas an insurer must acknowledge your claim within 15 calendar days, accept or deny it within 15 business days after final proof of loss, and pay within 5 business days after the insurer says it will pay. Total loss rule: repairs cost 100% or more of the car's actual cash value. Deadline to file an injury lawsuit: 2 years.

Claim-handling deadlines in Texas

Acknowledge your claim15 calendar days
Accept or deny it15 business days after final proof of loss
Pay after agreement5 business days after the insurer says it will pay

Rule: Tex. Ins. Code §§ 542.055, 542.056, 542.057, 542.058.

The decision clock usually starts once the insurer has the proof of loss it asked for, not on the day of the accident. Ask the adjuster in writing what they still need, and keep a dated log of everything you send.

When a car is totaled in Texas

Repairs cost 100% or more of the car's actual cash value.

Example: for a car worth $15,000, a repair estimate of $15,000 or more (100%) makes it a total loss.

Rule: Tex. Transp. Code § 501.091(15)(A).

If the insurer misses a deadline or lowballs you

  1. Send a short written follow-up that names the deadline and asks for a decision by a specific date.
  2. If the offer is low, answer with evidence: repair estimates, comparable cars for sale, receipts.
  3. Still stuck? File a free complaint with the Texas Department of Insurance.

If you have to sue the other driver in Texas

Most claims settle without a lawsuit, but these rules decide how much leverage you have when you claim against the at-fault driver's insurer.

If you were partly at faultModified comparative fault (51% bar)
Deadline to sue for injuries2 years
Deadline to sue for car damage2 years
Small claims court limit$20,000 (in justice court)

Your recovery is cut by your share of the fault, and you get nothing if you are more at fault than the other side (51% or more).

The lawsuit deadline (statute of limitations) usually runs from the accident date, and an open insurance claim does not pause it.

Small claims court is a cheap way to recover a deductible, a rental bill or diminished value without a lawyer, as long as the amount fits under the limit.

Rules: Tex. Civ. Prac. & Rem. Code § 33.001; Tex. Civ. Prac. & Rem. Code § 16.003; Tex. Gov't Code § 27.031.

Sales tax and fees on a total loss in Texas

No rule requires it; under an "actual cash value" policy, taxes and fees aren't part of the value (Singleton v. Elephant Ins. Co., 5th Cir. 2020).

Total loss tax and fee rules in every state

Diminished value in Texas

  • From the at-fault driver's insurer: Yes, if you can prove it. TDI Bulletin B-0027-00 says a liability insurer may owe a third-party claimant the loss of market value even after a complete repair; courts allow repair cost or value loss without double recovery.
  • From your own insurer: No, under standard "repair or replace" wording. American Mfrs. Mut. Ins. Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003); TDI Bulletin B-0027-00.

Diminished value rules in every state

Claim laws in nearby states

If the accident happened in another state, or the other driver is insured there, these rules may matter too:

  • Oklahoma: 60% of value; decision within 60 days after proof of loss
  • Louisiana: 75% of value; decision within 30 days after proof of loss (written offer)
  • New Mexico: Insurer decides (no fixed %); decision with no fixed deadline (a reasonable time)

Free tools for your claim

Not legal, financial, or insurance advice. This page summarises rules and data for general education only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. Some of these rules apply only to certain claim types.

Frequently asked questions

How long does an insurance company have to pay a claim in Texas?

In Texas the insurer must accept or deny the claim within 15 business days after final proof of loss, and pay within 5 business days after the insurer says it will pay. The clock generally starts once the insurer has the proof of loss it asked for, so keep a dated record of what you sent.

When is a car considered totaled in Texas?

In Texas: repairs cost 100% or more of the car's actual cash value. You can challenge the actual cash value the insurer uses.

How long do I have to sue after a car accident in Texas?

In Texas you generally have 2 years from the accident to file an injury lawsuit and 2 years to sue for damage to your car. An insurance claim does not pause this deadline, so if talks drag on, check the date and speak to a lawyer well before it passes.

Can I recover if I was partly at fault in Texas?

Texas follows modified comparative fault (51% bar). Your recovery is cut by your share of the fault, and you get nothing if you are more at fault than the other side (51% or more).

What can I do if my insurer misses a deadline in Texas?

Send a written follow-up citing the rule and asking for a decision by a specific date. If that fails, file a free complaint with the Texas Department of Insurance; a pattern of missed deadlines can also support a bad-faith claim.

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