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Automobile Insurance Subrogation: In All 50 States - Hardcover
Automobile Insurance Subrogation: In All 50 States - Electronic
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§ 4.44 TEXAS
§ 4.44[1] Subrogation Rights
Texas recognizes both equitable and contractual subrogation.1
"Equitable subrogation"2 arises as a result of the equities between the
parties and is awarded as a matter of equity, not by right.3
"Contractual subrogation"4 arises by virtue of an agreement between
the parties and is awarded under that agreement. It is usually, but not
always, subject to the dictates of equity.5 Under contractual
subrogation, which is governed by the terms of the insurance policy,
no balancing of equities is required in order to determine whether an
insurer has a right to recover at all.6 However, while the insurance
contract providing expressly for subrogation may be able to remove
from the realm of equity the question of whether the insurer has a
right to subrogation, it cannot answer the question of whether an
insurer is actually entitled to subrogation or how much it should
receive.7 Therefore, Texas is guilty of blurring the fundamental
distinction between equitable and contractual subrogation.
Texas appears to allow a right of reimbursement under an
insurance policy which contains appropriate reimbursement
language.8 Such a right of reimbursement, allowed from an insured
that has been fully compensated by the tortfeasor, is not barred
because of a mere failure to intervene into the insured’s action
against a tortfeasor.
§ 4.44[2] Automobile Insurance Coverage
In Texas, a person may not operate a motor vehicle unless
financial responsibility is established through an insurance policy,
surety bond,9 a deposit,10 or self-insurance under § 601.124.11
Liability Insurance Coverage. Minimum amounts of liability
insurance coverage are required as follows:
Effective April 1, 2008, $25,000 for bodily injury to or death of
one person, $50,000 for bodily injury of death of two or more person
in any one accident, and $25,000 for damage to or destruction of
property of others in one accident; and
Effective January 1, 2011, $30,000 for bodily injury to or death of
one person, $60,000 for bodily injury of death of two or more person
in any one accident, and $25,000 for damage to or destruction of
property of others in one accident.12
