Yes, for benefits it owes under your policy, such as uninsured or underinsured motorist, PIP, or collision coverage, and for unreasonable claim handling under the Insurance Code. For UM and UIM claims, Texas law first requires proof of the other driver’s fault and your damages, so the suit is often against your insurer as a stand-in.
Your own policy is a contract, and your insurer owes you the benefits you paid for. Unlike the other driver’s carrier, it also owes you statutory duties in how it handles your claim.
The Insurance Code sets deadlines. Under Chapter 542, an insurer must acknowledge a claim and begin its investigation within 15 days of notice (section 542.055), accept or reject it in writing within 15 business days after receiving the items it requested (section 542.056), and pay within 5 business days after accepting (section 542.057). Section 542.060 adds interest at 18 percent a year plus attorney’s fees when an insurer liable for a claim violates those rules. Section 541.151 allows a suit for unfair or deceptive practices, and Texas courts have long recognized a duty of good faith to insureds.
Uninsured and underinsured motorist claims have their own order. Under Brainard v. Trinity Universal (2006), the insurer does not owe UIM benefits until the other driver’s liability and the amount of your damages are established. That is often done in a lawsuit against your insurer, which stands in the at-fault driver’s shoes, or by suing the driver first.
Read your policy’s conditions. Most require prompt notice, cooperation, and the insurer’s consent before you settle with the at-fault driver, and violating those terms can cost you the coverage.
Suing your own insurer does not usually raise your rates for that reason alone, but policies and rating rules vary. Owsley Law Firm handles UM, UIM, and PIP disputes on contingency, so there is no fee unless it recovers.
What to do, step by step
- Get a complete copy of your policy, including declarations and endorsements.
- Give prompt written notice of the claim.
- Provide the items the insurer requests and keep copies.
- Get written consent before settling with the at-fault driver.
- Track the insurer’s response dates under Chapter 542.
Claims for extra damages beyond the policy benefits, such as Insurance Code penalties, often depend first on proving the benefits were owed.
Insurers sometimes ask for an examination under oath in larger claims. Those are serious and you should have a lawyer present.
PIP claims are usually simpler. Insurance Code section 1952.155 says PIP benefits are paid without regard to fault, and section 1952.156 requires payment within 30 days after the insurer receives proof of the loss. If PIP is not being paid, ask the insurer in writing what it needs and when it received your proof.
An insurer that unreasonably delays or denies a claim it owes may also face a complaint to the Texas Department of Insurance. A complaint does not replace a lawsuit, but it creates a record and sometimes prompts a quicker answer.
Your insurer may ask you to sign authorizations or provide records. Provide what relates to the crash, but have a lawyer review broad requests that reach years of unrelated history.
Mistakes that cost people money
- Settling with the at-fault driver without UIM consent.
- Missing policy notice or cooperation requirements.
- Assuming a delay is a denial, or a denial is final.
- Giving your own insurer a recorded statement without understanding the coverage issues.
Related questions
Is suing my insurer bad faith on my part?
No. You are enforcing a contract you paid for, and Texas law provides that remedy.
Can I recover attorney’s fees from my insurer?
Section 542.060 allows reasonable attorney’s fees when an insurer liable for a claim violates the prompt payment rules.
Do I have to sue the other driver first for UIM?
Not always. You can establish liability and damages in a suit against your insurer, as Brainard allows.
Will my insurer cancel my policy if I sue?
Insurers have their own rules about renewals, and Texas regulates when policies can be cancelled. Ask your lawyer about your specific policy.
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