Who pays for my car repairs, rental car and lost value after a Texas crash?

Three ways to get your car paid for

The at-fault driver's liability insurance. This is the usual route when the other driver caused the crash. It pays without a deductible. Texas only requires $25,000 of property damage coverage per crash (Transp. Code § 601.072), which may not cover a newer car or a crash with several damaged vehicles.

Your own collision coverage, if you bought it. It pays faster when fault is disputed or the other insurer is slow, but you pay your deductible, and it does not pay for lost value (more on that below).

Your uninsured motorist property damage coverage, if the other driver had no insurance or not enough. Texas UM property damage coverage carries a $250 deductible (Ins. Code § 1952.105).

Which route is best depends on how clear fault is, how fast you need the car, and your deductible. We help you pick.

Can I choose my own body shop?

Yes. Under Insurance Code §§ 1952.301–.302, an insurer may not limit your choice of repair shop, may not require you to use a particular shop or pick from its list, and may not suggest that you have to use a certain shop for the repair to be covered. The Texas Department of Insurance says this applies to the insurer's own customers and to third-party claimants, meaning people claiming against someone else's insurer. Insurers must give a notice telling you that you can choose the shop. The insurer does not have to pay more than a reasonable amount, so get a written estimate from the shop you choose.

Who pays for a rental car?

The at-fault driver owes you for loss of use of your car. In J&D Towing, LLC v. American Alternative Insurance Corp. (Tex. 2016), the Texas Supreme Court confirmed that loss-of-use damages are available when a vehicle is damaged, and held they are available even when it is totaled, on top of the car's value.

There are limits. The period is the time reasonably needed to repair or replace the car, and the owner has to act diligently. A rental kept for months while nobody makes a decision will be challenged. The at-fault insurer may also hold off on paying for a rental until it decides who was at fault, which is a common reason to start with your own rental coverage. If you have rental reimbursement on your own policy, it can bridge the gap while the at-fault insurer accepts responsibility. Keep every receipt, including rides and transit you paid for while you had no car.

What if my car is totaled?

The measure is the car's fair market value immediately before the crash, plus loss of use for the time reasonably needed to get a replacement. Bring us anything that shows your car's condition and value: maintenance records, recent upgrades, new tires, photos from before the crash. Tell us right away if you still owe on a loan, and where the car is. Tow-yard storage fees add up every day, and moving the car quickly is part of protecting the claim.

Can I get paid for diminished value?

A car with a crash history is often worth less than the same car without one, even after good repairs. Whether you can recover that loss depends on whose insurance you are claiming against.

• Against the at-fault driver: yes. Texas measures damage to a repaired vehicle as the cost of repair with allowance for any difference between its value before the crash and its value after repairs, as the Supreme Court explained in J&D Towing. TDI's Bulletin B-0027-00 says a liability insurer may owe a third-party claimant loss of market value regardless of how complete the repair is.
• Under your own collision coverage: generally no. In American Manufacturers Mutual Insurance Co. v. Schaefer (Tex. 2003), the Supreme Court held the standard Texas policy does not pay diminished value when the car has been fully and adequately repaired. TDI takes the same position.
• Under your UM coverage: possibly. TDI's bulletin says uninsured/underinsured motorist coverage may owe loss of market value regardless of the repair.

Proving lost value usually takes an appraisal from someone who knows your type of vehicle and your market. Ask the shop for a full repair invoice. It is part of the proof.

Before you sign a property damage release

The insurer will often settle the car first and send a release to sign. Read every line. It should release property damage only, for this vehicle. Watch for words like “all claims,” “bodily injury,” or “any and all damages arising from the accident.” A release written that broadly can end your injury claim. We review any release before you sign it. Property adjusters also sometimes ask how you're feeling or want a recorded statement; see do I have to give a recorded statement.

We handle the injury claim, and the car alongside it

Our work is the injury claim: medical bills, lost wages and the harm the crash did to you. The property side is often handled alongside it, and once you hire us, we deal with the insurer on both, so you aren't trading calls with adjusters. Take photos of the car before repairs, keep every estimate and receipt, and get medical care for your injuries. You talk directly with Jimmy by phone, text, email or video call, and in person when needed, anywhere in Texas. For using your own policy for medical bills, see should I use my own insurance.

Other ways people ask this

Does the at-fault driver's insurance have to pay for my rental car?

It owes you for loss of use of your car for the time reasonably needed to repair or replace it. A rental is the usual way that is measured. Keep every receipt.

Can I get a rental if my car is totaled?

Yes. The Texas Supreme Court held in J&D Towing (2016) that loss-of-use damages are available even when a vehicle is totaled, for the time reasonably needed to get a replacement.

Does the insurance company get to choose the body shop?

No. Under Insurance Code § 1952.301 the insurer may not limit your choice or require a particular shop. It only has to pay a reasonable amount for the repair.

Will my own insurance pay diminished value?

Generally not under collision coverage, if the car was fully and adequately repaired (Schaefer, Tex. 2003). Diminished value is claimed against the at-fault driver's insurer, and possibly under your UM coverage.

How is diminished value proven?

Usually with an appraisal comparing your car's value before the crash to its value after repairs, along with the repair invoice and photos.

The adjuster sent me a release for the car. Is it safe to sign?

Only if it is limited to property damage for that vehicle. Any wording that releases 'all claims' or bodily injury can end your injury claim. Have us read it first.

What if the damage is more than the other driver's $25,000 property coverage?

The rest can come from your collision coverage or your uninsured/underinsured motorist property damage coverage, which has a $250 deductible in Texas.

Authority: J&D Towing, LLC v. American Alternative Ins. Corp. (Tex. 2016) · TDI Bulletin B-0027-00: Payment of diminished value · TDI Bulletin B-0026-11: Automobile repair facilities (Ins. Code §§ 1952.301-.302) · American Mfrs. Mut. Ins. Co. v. Schaefer, No. 02-0295 (Tex. 2003) · Tex. Transp. Code § 601.072 (minimum coverage) · Tex. Ins. Code § 1952.105 (UM property damage, $250 deductible)