How Does a Car Accident Settlement Work?

How Does a Car Accident Settlement Work?

If you’ve been involved in a car accident in Texas, it’s important to understand the settlement process and timeline. This blog post will provide an overview of the key steps involved in getting a car accident settlement in Texas.

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Reporting a Car Accident in Texas

Texas law requires drivers to file a Crash Report, Form CR-2, within ten days when a police officer does not investigate the accident and it results in injury, death, or property damage greater than $1,000. Once you’ve determined everyone is safe, you should exchange personal, vehicle, and insurance information with the other drivers and get the names and contact info for any witnesses.

Car Accident Settlement Process in Texas

The car accident settlement process in Texas typically involves the following steps.

Filing an Insurance Claim 

Following a vehicular accident, the individuals involved usually lodge insurance claims with their respective insurers. These insurance firms then engage in a negotiation process to reach a settlement agreement.

This agreement takes into account various factors, such as the cost of fixing or replacing the damaged property, medical bills, lost income, and other losses that have been incurred as a result of the accident.

Negotiating a Settlement 

Like most types of settlements, the willingness to settle and the amount offered after a car accident will depend heavily on the evidence supporting your case. It’s important to gather all relevant evidence, such as police reports, medical records, and witness statements, to support your claim.

Settlement Agreement 

If both parties agree to a settlement, a settlement agreement will be drafted, outlining the terms and conditions of the settlement. It’s crucial to review the agreement carefully and consult with an attorney if needed before signing it.

Release of Claims

Once the settlement agreement is signed, the injured party will typically be required to sign a release of claims, waiving their right to pursue further legal action against the at-fault party. It’s important to carefully review the release and ensure you are satisfied with the total settlement before signing it.

do not accept an accident settlement before your lawyer negotiates it

Applicable Laws and Statutes

When it comes to car accident settlements in Texas, several laws and statutes may come into play. Here are a few key ones to be aware of:

Statute of Limitations 

Texas law gives you two years after an accident to file a lawsuit. This is known as the statute of limitations. It’s important to initiate the settlement process as soon as possible to avoid any potential delays or complications.

Comparative Negligence 

In Texas, a modified comparative negligence rule is applied. This implies that if you are deemed to have a certain percentage of responsibility for the accident, your total compensation could be decreased accordingly. If you are 30% liable for the accident and your total damages amount to $50,000, your compensation would be reduced to $35,000.

Minimum Insurance Requirements

Texas law requires drivers to carry a minimum amount of liability insurance coverage. As of 2022, the minimum requirements are $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for property damage.

Timeframe for Car Accident Settlements in Texas

The timeframe for car accident settlements in Texas can vary depending on the complexity of the case and the willingness of the parties to negotiate. It’s important to note that Texas law gives you two years after an accident to either settle your claim or file a lawsuit. However, it’s generally advisable to initiate the settlement process as soon as possible to avoid any potential delays or complications.

Contact Our Lawyers for a Free Case Review!

Navigating the car accident settlement process in Texas can be complex, but understanding the key steps involved can help you make informed decisions. If you’ve been involved in a car accident, it’s important to consult with an experienced attorney at Brent Coon & Associates who can guide you through the process and protect your rights.

Contact us at 409-222-2222 for your free case review.


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  • Beaumont Office

    215 Orleans St.
    Beaumont, TX 77701

  • Houston Office

    300 Fannin St.
    Suite 300
    Houston, TX 77002

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    4111 W. Alameda Avenue
    Suite 611
    Burbank, California 91505

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    Denver, CO 80210-2500

  • Philadelphia Office

    1500 Walnut Street
    Suite 2000
    Philadelphia, PA 19102

  • Nashville Office

    1102 17th Avenue, South
    Suite 305
    Nashville, TN 37212


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