Third-Party Insurance Claim Denied in Texas? Here’s What You Need to Know

Introduction

When you’re involved in an accident caused by someone else, you usually expect their insurance company to cover your damages. This is known as a third-party insurance claim. However, in Texas, many of these claims are denied for various reasons. If your third-party insurance claim was denied, it’s important to know your rights and what steps you can take next.

This guide explains why third-party claims are denied, what you can do to challenge the denial, and how legal support—like the team at Louis Law Group—can help you recover the compensation you deserve.

Understanding Third-Party Insurance Claims in Texas

A third-party insurance claim is one you file against someone else’s insurance policy. For example, if you’re hit by another driver, you file a claim with their auto insurance company. That insurance provider is the “third party” in this situation.

Texas follows a “fault” system when it comes to auto accidents and liability. This means the person who caused the accident is responsible for covering the damages, typically through their insurance.

Common Reasons Third-Party Claims Are Denied in Texas

Insurance companies may deny third-party claims in Texas for several reasons, including:

• Disputed Liability: The insurer might argue their policyholder wasn’t at fault.

• Lack of Evidence: Insufficient documentation of the accident or injuries.

• Policy Exclusions: The at-fault party’s policy may not cover the incident type.

• Missed Deadlines: Failing to file the claim within the allowed timeframe.

• Contributory Negligence: Texas uses modified comparative negligence rules. If you're found to be 51% or more at fault, you may not recover any damages.

Each of these scenarios can be addressed, but they require a strong legal and factual foundation.

What To Do if Your Third-Party Claim Is Denied in Texas

Request a Written Explanation

Ask the insurance company to provide a written explanation of why your claim was denied. This will help you understand whether the denial was due to liability, paperwork, or a policy issue.

Review the Police Report and Evidence

Make sure all the evidence supports your version of events. Gather any photos, videos, medical reports, or witness statements.

Appeal the Denial

Most insurance companies have an internal appeal process. Use it. Be sure to submit any additional evidence that supports your claim.

File a Complaint with the Texas Department of Insurance (TDI)

If you believe the insurance company acted unfairly, you can file a complaint with TDI. They may investigate and provide mediation.

Hire a Texas Insurance Claim Attorney

If the insurer won’t budge or you’re unsure how to proceed, consulting a lawyer can make all the difference. An attorney can communicate directly with the insurer and, if necessary, file a lawsuit.

How Louis Law Group Can Help

At Louis Law Group, we help Texas residents stand up to insurance companies that deny valid third-party claims. We understand the tactics insurers use to avoid paying, and we know how to counter them.

If your third-party insurance claim was denied, our team will:

• Evaluate the reasons for the denial

• Collect and present stronger evidence

• Communicate directly with the insurer

• Take legal action if necessary to recover compensation

With experience and dedication on your side, you don’t have to fight this battle alone. Contact us today to discuss your situation and explore your legal options.

Preventing Future Denials: Proactive Steps

• Document Everything: Take photos at the scene, collect witness information, and save medical records.

• File Promptly: Report the accident and submit your claim quickly.

• Avoid Gaps in Treatment: Insurance companies use these as excuses to deny injury claims.

• Don't Give Recorded Statements: Without legal advice, these statements may be used against you.

Frequently Asked Questions (FAQs)

Can I sue if my third-party insurance claim is denied in Texas?

Yes. If the insurance company denies your claim without valid reason, you may file a lawsuit to seek damages.

How long do I have to file a third-party claim in Texas?

Texas has a two-year statute of limitations for personal injury claims. Act quickly to preserve your rights.

What if the at-fault driver doesn’t have insurance?

You may file a claim under your own uninsured/underinsured motorist (UM/UIM) coverage if you have it.

Do I need a lawyer for a denied third-party claim?

While not required, having a lawyer improves your chances of success, especially if liability is contested or the insurer is uncooperative.

Will my rates go up if I file a third-party claim?

No. Because you’re not using your own insurance policy, your premiums should not be affected.

Conclusion

Dealing with a denied third-party insurance claim in Texas can be frustrating and stressful. But you don’t have to accept the denial without a fight. With the right steps and legal support, you can challenge the decision and pursue the compensation you deserve.

Louis Law Group is here to support Texans facing unfair claim denials. With years of experience in insurance disputes, our team knows how to handle even the toughest cases. If your third-party claim was denied, let us help you navigate the process and protect your rights.

Are you ready to fight back after your third-party insurance claim was denied in Texas?

Contact Louis Law Group today for a free consultation. Call 833-657-4812 or submit a free case evaluation form to get started. Don’t wait—let us help you take the first step toward justice and financial recovery.