September 9, 2026
In 2024, a reportable crash occurred every 57 seconds on Texas roads, according to the Texas Department of Transportation. About twenty percent, or 115,173, happened in Harris County, home to Houston, Pasadena, and Baytown.
Drivers who struggled to get insurance to cover the damage, or who had a bodily injury claim denied, aren’t alone. According to a new analysis by the Wall Street Journal, auto insurers closed 45 percent of their claims in 2025 without paying a dime. That rate is up from 35 percent in 2015.
As the WSJ notes, most American drivers are required to carry auto insurance. When a wreck happens, and insurance won’t pay, drivers are left struggling to cover unexpected bills. Medical costs, lost wages, and repair bills pile up quickly. For injured drivers in Pasadena, Pearland, League City, and across the Houston area, a denied car insurance claim can make those bills even harder to manage.
Insurers Closed 45 Percent of Car Accident Claims Without Payment in 2025
If you’re in a collision, will insurance pay for your losses? Motorists, pedestrians, and bicyclists are down to a “near flip-of-a-coin chance” the answer is yes, says the Wall Street Journal.
Overall, 45 percent of auto insurance claims were closed in 2025 with no payout. Some claims fared better than others, however. Insurers were more likely to pay auto damage claims. Last year, only about 25 percent of damage claims were closed with no payout.
*Disclaimer: Gustin Law Firm is not directly involved with any of the case examples mentioned in this article. However, our firm does represent clients injured in auto accidents throughout Houston.
Auto damage claims include both “collision” and “comprehensive” claims. Collision coverage protects drivers if their vehicle is hit by another vehicle in a crash. Comprehensive coverage addresses damage from other sources, including hitting a deer, fire, flood, theft, and vandalism.
Auto insurers also handle other claims. These include medical costs, bodily injury and property damage liability if their insured driver is found to be at fault, and uninsured/underinsured motorist coverage when their driver is hit by someone with insufficient insurance. Uninsured/underinsured coverage may also cover losses from a “hit and run” in which the other driver can’t be identified.
The Wall Street Journal analysis examined thousands of NAIC regulatory filings from 2016 to 2025 and compared each major insurer’s payout rates with its own historical track record over the past decade, and reported an industry-wide non-payment rate that rose from 35% to 45%.
Why Insurance Companies Deny or Delay Car Accident Injury Claims
Why are more claims being closed without payment now than in the past? There appear to be several answers to this question.
Several news reports across the US have recently featured drivers whose claims were denied because they failed to disclose every member of their household on their auto insurance applications.
The Wall Street Journal cited a California case, now part of a class action lawsuit, in which National General (an Allstate subsidiary) refused to pay a driver’s $5,000 liability claim after a minor accident because the policyholder had not listed his 15-year-old son on the insurance application. Notably, the son had no driver’s license and was not driving at the time of the accident.
A similar case in Michigan involved a family whose infant wasn’t listed on the insurance application. The infant hadn’t been born when the family applied for auto insurance. Some states are taking steps to clarify their insurance laws, hoping to prevent such denials from occurring again. Yet other factors can result in claims being denied.
Auto insurers note that some claims are closed without payment for good reasons. For example, an insurance company might close a claim without payment if costs were paid by the other driver’s insurer. Customers might withdraw claims, closing them. Claims for less than the insurance deductible usually aren’t paid by the insurance company, either.
Yet these “good reasons” don’t explain claims closed when an injured driver or passenger has real losses that haven’t been compensated. A denied bodily injury claim, or even substantial delays, can trigger a cascade of bills and expenses that can bury a struggling family.
What to Do If Insurance Denies Your Claim in Pasadena, Pearland, or League City
The best time to speak to a car accident attorney serving Houston, Pasadena, and Pearland is before you speak to an insurance company. The second-best time is now.
If insurance denies your claim, or if you suspect insurance is unnecessarily delaying, talk to a Houston-area law firm that handles car accident and denied insurance claims. An attorney can answer your questions and help you make informed decisions.
In the meantime, gather all your paperwork about the crash and keep it in a safe place. Make backup copies of photos, videos, or dashcam footage. If you have medical records or a copy of a police report, add these to your file. This information can help you and your attorney understand what happened – and fight for the benefits you deserve.
Talk to a Car Accident Lawyer About Your Denied Insurance Claim
To learn more, reach out to the team at Gustin Law today. We help injured drivers in Houston, Pasadena, Pearland, League City, and nearby communities. Call (713) 491-4792 or use our online contact form. Your consultation with us is free and confidential, and you don’t pay a fee unless we win your case.
Attorney Charlie Gustin is responsible for the content of this article.