When involved in a car accident, a common practice is to negotiate with the other party or their insurance company to settle the damages and injuries incurred during the incident. Along with this, it is not uncommon for one party to offer cash to the other, particularly if they are at fault and wish to avoid having their insurance rates increase or legal action taken against them. However, the question arises as to whether it is legal to offer cash in Texas car accident law.

Texas Car Accident Law

According to Texas law, drivers involved in car accidents are required to stop immediately at the scene of the incident, render aid to those who have been hurt, and exchange information with the other driver, including their name, address, insurance information, and license plate number. If necessary, the police should also be contacted and informed of the accident.

Furthermore, Texas follows the “fault” rule in car accident cases, meaning that whoever is found to be at fault for the accident will be held liable for any resulting damages or injuries. However, this does not necessarily mean that the at-fault driver must pay out of pocket, as they may have insurance to cover such costs.

Offering Cash in Texas Car Accident Law

While offering cash to the other driver may seem like an easy solution to avoid involving insurance or legal action, it is important to consider the legality and potential consequences of doing so. In Texas, offering cash for damages or injuries sustained in a car accident is not illegal, but it can be risky.

Firstly, accepting cash instead of going through insurance or legal channels can result in a lack of documentation, making it difficult to come to a fair agreement regarding fault and settlement amounts. Additionally, the other driver may change their mind or demand more money after the fact, leaving the offering driver without any legal recourse.

Moreover, if the accident resulted in any injuries or damages over a certain dollar amount, offering cash without informing the appropriate authorities can be considered a criminal offense, particularly if the accident involved fatalities or serious injuries.

Legal Alternatives to Offering Cash

Rather than offering cash, it is recommended to follow proper procedures set forth by Texas law regarding car accidents. This includes contacting the police, exchanging information with the other driver, and contacting insurance providers if necessary. Additionally, if the other driver is at fault and does not have insurance or is underinsured, legal action may be necessary to obtain fair compensation for damages and injuries sustained.

It is also important to note that Texas law requires drivers to carry a minimum amount of liability insurance coverage, which includes bodily injury liability and property damage liability. If a driver is found to be without insurance or carrying inadequate coverage, they may face legal and financial consequences.


While offering cash may seem like an easy solution to resolving a car accident, it is important to recognize the potential legal and financial risks involved. In Texas, it is not illegal to offer cash, but it may result in a lack of documentation and potential legal issues down the line. Therefore, it is recommended to follow proper procedures set forth by Texas law and work with insurance providers or legal professionals to obtain fair compensation for damages and injuries sustained in a car accident.


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