Did You Know That Even if You Have a Not-At-Fault Automotive Insurance Claim in Texas Your Rates Can Still Go Up? By Nexus Claim Services LLC

Here’s a hard truth for Texas drivers: even if you're in an accident and it's clearly not your fault, your insurance rates can still increase. Sounds ridiculous, right? But welcome to the Lone Star loophole—Texas has no consumer protection law in place to stop insurers from hiking your premiums after a not-at-fault claim.

Let’s break it down so you don’t get blindsided.

The Illusion of “Going Through the Other Person’s Insurance”

Most people assume, “It wasn’t my fault, so I’ll just go through the other driver’s insurance.” Sounds reasonable. But here's the kicker:

You don’t have a contract with their insurer. They don’t owe you anything beyond what they choose to pay. They don’t have to prioritize your best interests.

You’re a third party in their eyes. This means they can delay, deny, or underpay your claim with little recourse unless you lawyer up or take them to court. And good luck getting them to budge quickly.

Why You SHOULD File Through Your Own Insurance Company

It feels backwards—why file with your own company if it wasn’t your fault? Here's why it might actually be the smarter move in Texas:

1. Contractual Agreement: You have a contractual agreement with your insurer. They are legally obligated to handle your claim fairly and in a timely manner.

   
   

2. Appraisal Clause: If they undervalue your vehicle (like in a total loss), you can invoke your Appraisal Clause to fight back.

   
   

Starting January 1, 2026, every auto policy in Texas will be required to include the Appraisal Clause—your built-in dispute resolution tool. This means you’ll have the legal right to challenge lowball settlements.

Total Loss? Appraisal Clause to the Rescue

If your vehicle is declared a total loss and the offer from your insurance feels off (spoiler: it probably is), you’re not stuck.

Invoke the Appraisal Clause to bring in an independent appraiser to determine your vehicle’s true pre-loss value. No more take-it-or-leave-it offers. You regain control of your claim.

Short-Pay Repairs? You’ve Got Firepower

If your shop of choice isn't being fully paid by the insurer, you’re not forced to eat the cost or find a cheaper shop. Again, you can invoke the Appraisal Clause.

This forces the insurer to engage in a formal dispute resolution process. Now there’s a shot at getting full payment for all necessary repairs to return your vehicle to pre-loss condition—OEM procedures, calibration, teardown, and all.

Subrogation: How You Get Your Deductible Back

Here’s the part nobody explains: When you go through your insurance, they will pay the claim upfront, then go after the at-fault driver's insurer for reimbursement. This is called subrogation.

Your carrier gets reimbursed. You get your deductible back once fault is accepted. You avoid the “third-party runaround” with the other insurance company.

It’s cleaner. It’s faster. It’s contractually bound.

What About Diminished Value? Here’s How It Works

Once your insurer subrogates and the at-fault party’s insurance accepts liability, you can file a Diminished Value claim—if you meet certain requirements:

• You were not at fault.

• The vehicle is not leased and has a clean title.

• The damage impacted market value.

  
  

That means if your car is repaired but its value tanks on the resale market, you have a right to recover that lost value.

The Importance of Understanding Your Rights

In Texas, the system isn’t designed to protect you—it’s designed to protect the insurers. But knowing your rights and using the tools available (like the Appraisal Clause) flips the script.

Don’t let the “not-at-fault” label lull you into a false sense of security. Don’t rely on the other person’s insurance to do right by you. Take the wheel—use your own policy and enforce your rights.

Navigating the Claims Process

Navigating the claims process can feel overwhelming. It’s crucial to stay informed and proactive. Here are some steps to consider:

1. Document Everything: Keep detailed records of the accident, including photos, police reports, and witness statements.

   
   

2. Communicate Clearly: When dealing with your insurer, be clear and concise. Provide all necessary documentation promptly.

   
   

3. Seek Professional Help: If you feel lost, don’t hesitate to reach out for assistance. Experts can guide you through the process.

   
   
   
   

Bottom Line: Knowledge is Power

At Nexus Claim Services, we fight for fair outcomes—every time. Need help navigating the chaos? That’s what we do.

Want a free claim review or have questions about your situation? Call us at 254-441-7826 or visit nexus-claims.com.

Because in Texas, fair isn’t automatic—but it is possible.