Texas minimums are $30,000 per person and $60,000 per crash under Transportation Code section 601.072, which a serious injury exceeds quickly. The gap is usually filled by your own underinsured motorist coverage, other liable parties such as an employer, or, in some cases, the driver’s own assets.
Most Texas drivers who cause serious injuries carry less insurance than the injuries cost. The minimum liability coverage, 30/60/25, means $30,000 per injured person, $60,000 per crash, and $25,000 for property. A hospital stay or surgery can exceed that before you leave the hospital.
Your own underinsured motorist coverage is the most important backup. Insurance Code section 1952.101 requires insurers to offer it with every auto policy, and you have it unless you rejected it in writing. It pays the difference between the at-fault driver’s limits and your damages, up to your UIM limits. Get your insurer’s consent before settling with the at-fault driver, because many policies require it.
Look for other defendants. If the driver was working, the employer may be liable and insured. A vehicle owner who lent the car to an unsafe driver, a bar that overserved a drunk driver under Alcoholic Beverage Code chapter 2, or a company that maintained a dangerous road condition may share responsibility under Chapter 33 of the Civil Practice and Remedies Code.
The driver may have more coverage than the minimum, such as an umbrella policy or a household policy. When the insurer refuses a reasonable demand within the policy limits, Texas’s Stowers doctrine, dating to G.A. Stowers Furniture v. American Indemnity (1929), can make the insurer liable for a judgment above its limits. Lawyers use carefully drafted policy-limits demands to set that up.
Collecting directly from an individual is often difficult, so a realistic plan matters. Owsley Law Firm identifies every policy and defendant at the start, and works on contingency, so there is no fee unless it recovers.
What to do, step by step
- Get the at-fault driver’s policy limits in writing.
- Check your declarations page for UM and UIM limits.
- Identify any employer, vehicle owner, or business involvement.
- Notify your own insurer of a possible UIM claim.
- Get consent before accepting the at-fault driver’s limits.
Stacking several of your own policies is limited by policy language, so read every policy in the household; a relative’s policy may cover you as a resident relative.
If the driver was working, look at the employer’s commercial policy, which often has far higher limits than personal policies.
Medical expenses at settlement are limited to amounts actually paid or incurred under Civil Practice and Remedies Code section 41.0105, which can help a claim fit within limited coverage. A lawyer also negotiates liens and repayment claims so more of a small recovery goes to the injured person.
Several injured people may share one small policy. Insurers sometimes ask all claimants to agree on how to split the limits, and a lawyer can help reach a fair division or ask a court to decide it.
Your own policy’s medical payments or PIP coverage pays regardless of fault and sits alongside UIM. Together they can make a significant difference when the at-fault driver carries only the minimum.
Mistakes that cost people money
- Accepting the minimum limits without checking UIM coverage.
- Settling without your insurer’s consent.
- Overlooking an employer when the driver was on the job.
- Assuming you can collect a large judgment from an individual.
Related questions
How do I find out the other driver’s limits?
Insurers often disclose limits when asked in writing with supporting medical records, especially when a limits demand is made.
Does UIM pay after the at-fault driver pays?
Yes. It pays your damages above the at-fault driver’s limits, up to your UIM limits, once liability and damages are established.
What is a Stowers demand?
A reasonable offer to settle within the policy limits. If the insurer unreasonably refuses, it can become liable for a judgment above its limits.
Is it worth suing a driver with minimum coverage?
Sometimes, especially when there are other defendants or excess coverage. A lawyer can assess whether a suit adds value before filing.
Read next
