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How Texas Law Shapes a Car Accident Claim

A plain-language overview of the Texas rules that affect what a car accident claim can recover, and why no online calculator can put a number on yours.

10 min readPublished October 20, 2026Last updated October 22, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas law gives no formula for turning an injury into an amount. It sorts compensatory damages into economic and noneconomic damages (CPRC §41.001), limits recovery of medical expenses to the amount actually paid or incurred (§41.0105), and bars recovery by an injured person found more than 50 percent responsible, reducing it by the person's own percentage otherwise (§§33.001, 33.012). The insurance involved, including the at-fault driver's liability coverage and your own PIP and UM/UIM, also shapes a claim, which is why InjuryClaimGuide does not estimate what any claim could recover.

Introduction

People who are hurt in a car accident often want to know what their claim might bring. That is a reasonable question, and online tools that offer a quick number can be tempting. This guide does something different. It explains the Texas rules that shape what a car accident claim can recover, so you can understand why the answer depends on facts that only the people handling your claim can review.

InjuryClaimGuide does not estimate, range, or predict what any claim could recover, and we do not analyze the merits of any potential claim. This article provides general informational guidance and is not legal advice.

Two Kinds of Compensatory Damages

Texas law sorts compensatory damages into two groups.

  • Economic damages compensate for "actual economic or pecuniary loss" (CPRC §41.001(4)). In a car accident claim this commonly includes medical expenses and lost earnings.
  • Noneconomic damages compensate for losses that are not financial, which the statute lists as physical pain and suffering, mental or emotional pain or anguish, loss of consortium, disfigurement, physical impairment, loss of companionship and society, inconvenience, loss of enjoyment of life, injury to reputation, and other nonpecuniary losses (CPRC §41.001(12)).

The statute defines these categories. It does not supply a formula for converting an injury into an amount. When a case goes to trial, the judge or jury decides the amount from the evidence, and the economic portion must be found separately from the other compensatory damages (CPRC §41.008(a)).

Medical Expenses: "Actually Paid or Incurred"

One Texas rule matters a great deal for medical bills. Under CPRC §41.0105, "recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant."

In practice, the amount on a hospital or clinic bill is not always the amount that is paid. When a health insurer or another payer has a contract with the provider, the provider may adjust the charge and accept a smaller amount as full payment.

The Supreme Court of Texas addressed this in Haygood v. De Escabedo, No. 09-0377, decided July 1, 2011. The court held that section 41.0105 "limits a claimant's recovery of medical expenses to those which have been or must be paid by or for the claimant," and that "only evidence of recoverable medical expenses is admissible at trial." The court also noted that the jury should not be told that the expenses will be covered by insurance, or that a provider adjusted its charges because of insurance.

This is one reason a number built from billed charges can be misleading. The billed amount and the recoverable amount can be different numbers, and which one applies depends on how each bill was actually paid or is owed.

Proving Medical Costs: Section 18.001 Affidavits

Medical expenses have to be proved, not just listed. CPRC §18.001 lets a party use a sworn affidavit, made by the provider or the person in charge of its records and including an itemized statement, to show that a charge was reasonable and that the service was necessary.

Some points about how this works:

  • If no one serves a counteraffidavit, the affidavit is sufficient evidence to support a finding that the charge was reasonable or the service was necessary.
  • The other side can contest it with a counteraffidavit from a qualified person, served within the deadlines the statute sets.
  • The affidavit is not evidence that the accident caused the injury. Causation still has to be proved separately.

These steps happen inside a lawsuit, on deadlines tied to the case. They are part of why the medical-expense portion of a claim is something an attorney works through with the actual records.

Shared Fault: Proportionate Responsibility and the 51% Bar

Texas uses a system called proportionate responsibility, set out in CPRC chapter 33.

  • The judge or jury assigns a percentage of responsibility, in whole numbers, to each of the following for causing or contributing to the harm: the injured person, each defendant, each person who settled, and each designated responsible third party (§33.003).
  • An injured person whose percentage is greater than 50 percent may not recover damages (§33.001). Because percentages are whole numbers, this is often described as the 51% bar.
  • If the injured person is not barred, the recoverable damages are reduced by that person's own percentage of responsibility, and further reduced by the dollar amounts of any settlements with others (§33.012).

Fault percentages are decided from the evidence: the crash report, witness accounts, photos, video, and the arguments of each side. A dropdown menu cannot decide them in advance.

Exemplary (Punitive) Damages

Exemplary damages are awarded "as a penalty or by way of punishment," not to compensate (CPRC §41.001(5)). They require a higher showing than ordinary negligence and have their own rules.

  • The injured person must prove by clear and convincing evidence that the harm resulted from fraud, malice, or gross negligence. Ordinary negligence is not enough (§41.003(a)-(b)).
  • The jury must be unanimous on both liability for and the amount of exemplary damages (§41.003(d)).
  • The amount is capped by a formula in §41.008(b) that is tied to the economic and noneconomic damages found by the jury, with a fixed statutory floor. The jury is not told about the cap (§41.008(e)).
  • The cap does not apply to certain conduct described as felonies in the Penal Code. That list includes intoxication assault and intoxication manslaughter (§41.008(c)).

A Contrast: The Medical-Negligence Cap

People sometimes hear that Texas "caps" injury damages. One well-known limit is in CPRC §74.301, which sets a fixed dollar limit on noneconomic damages in a health care liability claim against physicians and health care providers.

That limit is specific to health care liability claims. It is not the rule for a typical crash between private drivers. Claims against a Texas governmental unit are different again: the Texas Tort Claims Act sets its own limits on the amount of liability (CPRC §101.023). Which rules apply depends on who was involved.

Insurance Coverage

The At-Fault Driver's Liability Insurance

Texas requires drivers to establish financial responsibility, usually through liability insurance (Transp. Code §601.051). The minimum policy amounts are set by Transp. Code §601.072:

  • $30,000 for bodily injury to or death of one person in one collision;
  • $60,000 for bodily injury to or death of two or more persons in one collision; and
  • $25,000 for damage to property of others in one collision.

These are the minimums a policy must carry. They are not a measure of any injury or claim. A driver may carry higher limits, and some drivers carry no insurance at all.

Your Own Policy: PIP and UM/UIM

Texas Insurance Code chapter 1952 covers two kinds of protection that may be part of your own auto policy.

  • Personal injury protection (PIP) pays reasonable medical expenses and, for an income producer, lost income arising from the accident and incurred within three years (Ins. Code §1952.151). PIP benefits are payable without regard to who was at fault (§1952.155). Insurers must include it unless an insured named in the policy rejects it in writing (§1952.152). The law does not require an insurer to provide more than $2,500 in PIP per person (§1952.153); a policy can carry a higher limit.
  • Uninsured/underinsured motorist (UM/UIM) coverage protects you when the at-fault driver has no insurance or not enough. Insurers must include it unless an insured named in the policy rejects it in writing (§1952.101). Underinsured motorist coverage pays what you are legally entitled to recover from the underinsured driver, up to your policy limit, reduced by the amount recovered or recoverable from that driver's insurer (§1952.106).

Whether you have PIP or UM/UIM, and at what limits, is written on your declarations page. Your insurer can tell you what your policy includes.

Damages Awarded and Money Collected

The damages the law allows and the money that can actually be collected are two separate questions. When the damages found are greater than the insurance coverage available, the remainder has to be collected from the at-fault person directly, which is a separate process and is not always possible.

That is why the available policies (the at-fault driver's liability limits, any other responsible party's coverage, and your own UM/UIM) can affect what can actually be collected. None of those limits is something an online form can look up for you.

The Deadline

In Texas, a personal injury lawsuit generally must be filed not later than two years after the day the cause of action accrues. For a death, the two years run from the date of death (CPRC §16.003). The statute lists exceptions, and other rules can change the date.

Some deadlines are much shorter. A claim against a Texas governmental unit generally requires notice of the claim not later than six months after the day of the incident, and a city's charter can set its own notice period (CPRC §101.101). An attorney can tell you which deadlines apply to your situation.

Why No Online Calculator Can Put a Number on a Texas Claim

Many online calculators for car accident claims work the same way: they take medical bills and lost wages, multiply them by a number tied to how serious the injury seems, and show a dollar range. That approach is a rule of thumb. It is not how Texas law determines damages. Here is how the rules above differ from that kind of math:

  • The starting number may be the wrong one. Section 41.0105 and Haygood limit medical expenses to what was actually paid or incurred, which can differ from the billed amount a calculator asks for.
  • There is no formula for noneconomic damages. Texas law defines the categories, and a judge or jury decides the amount from the evidence in each case.
  • Fault is decided, not selected. Responsibility is divided in whole percentages among the parties, settling persons and designated responsible third parties, and more than 50 percent bars recovery entirely.
  • Medical costs have to be proved. Section 18.001 affidavits can be contested, and causation is always proved separately.
  • Coverage matters. The policies that apply, and their limits, can limit what can be collected.
  • Punitive damages follow different rules. They require clear and convincing proof of fraud, malice, or gross negligence, a unanimous jury, and a statutory cap with exceptions.

For these reasons, InjuryClaimGuide does not offer a calculator of this kind and does not put a number on any claim. A licensed Texas attorney who reviews your actual records, bills, insurance information, and the facts of the crash is the person who can advise you about your specific claim.

What You Can Gather

While you think about your next steps, it can help to keep these in one place:

  • Medical bills and the explanation-of-benefits statements that show what was actually paid
  • Records of missed work and pay
  • The crash report and any photos, video, or witness names
  • Your own auto policy's declarations page, showing whether you have PIP and UM/UIM
  • Any letters or claim numbers from insurers

About InjuryClaimGuide

InjuryClaimGuide is a legal advertising service. We are not a law firm and do not provide legal advice. We do not recommend or endorse any attorney, and we do not analyze the merits of any potential claim. Routing to participating firms is based on geography, practice area, language, and firm capacity.

Frequently Asked Questions

Can InjuryClaimGuide tell me what my claim could bring?

No. InjuryClaimGuide is a legal advertising service, and we do not put a number on, estimate, or evaluate any claim. If you choose to submit an intake, your information is forwarded to participating firms, and any discussion of your claim happens with an attorney.

Does Texas cap damages in a car accident case?

Texas caps exemplary (punitive) damages by formula under CPRC §41.008, with exceptions. The fixed noneconomic-damages limit in CPRC §74.301 applies to health care liability claims, not to a typical crash between private drivers. Claims against a Texas governmental unit have separate limits under the Tort Claims Act.

If I was partly at fault, can I still recover?

Under CPRC chapter 33, an injured person whose share of responsibility is greater than 50 percent may not recover. Below that, recoverable damages are reduced by the injured person's percentage. The percentages are decided from the evidence in each case.

Why does the amount my insurer paid matter if the bill was higher?

Under CPRC §41.0105, as the Supreme Court of Texas explained in Haygood v. De Escabedo, recovery of medical expenses is limited to the amount actually paid or incurred by or on behalf of the injured person, which can be less than the full billed charge.

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