Hit by an Uninsured or Underinsured Driver in Texas

The problem

Texas requires only 30/60/25 liability coverage, and a large share of drivers carry none at all. When the at-fault driver has no insurance or too little, the claim does not end. It shifts to other sources of coverage.

Your own uninsured/underinsured motorist coverage

Texas Insurance Code section 1952.101 requires insurers to offer uninsured/underinsured motorist coverage, called UM/UIM, with every auto policy. It is part of your policy unless you rejected it in writing. UM/UIM pays what the at-fault driver should have paid, up to your limits, and it covers you as a driver, a passenger, and a pedestrian.

Your premium cannot be raised for making a UM/UIM claim after a crash that was not your fault.

Personal injury protection

Texas insurers must also offer personal injury protection, usually $2,500, which pays medical bills and lost wages regardless of fault (section 1952.152). It is paid quickly and does not reduce what you recover from the at-fault driver.

Other policies that may apply

The firm looks beyond the driver.

• A policy on the vehicle, if the driver borrowed it
• An employer’s policy, if the driver was working
• A resident relative’s policy that covers you as a household member
• A rideshare company’s policy if either driver was logged in
• A dram shop claim against a bar or restaurant that overserved a drunk driver (Alcoholic Beverage Code Chapter 2)

What to do

Report the crash to your own insurer promptly, because UM/UIM claims have contractual notice requirements. Get the police report; it records the other driver’s insurance status. Then call the firm. UM/UIM claims are still adversarial, and your insurer will evaluate them the way any insurer does.

Uninsured and underinsured are different problems

An uninsured driver has no liability coverage at all. An underinsured driver has coverage, but not enough to pay for the harm caused. In Texas the second problem is more common than people expect, because Transportation Code section 601.072 sets the minimum limits at 30,000 dollars per person, 60,000 per accident, and 25,000 for property damage.

A hospital stay, a surgery, or a few months away from work can use up 30,000 dollars very quickly. When the injury is serious, the other driver's policy is often the smaller part of the answer.

How uninsured and underinsured motorist coverage works

Insurance Code section 1952.101 requires Texas auto insurers to offer uninsured and underinsured motorist coverage, usually called UM/UIM. It is included in the policy unless the policyholder rejected it in writing. If you do not remember rejecting it, check the policy before assuming it is not there.

UM/UIM steps into the shoes of the at-fault driver. It pays what that driver would owe you if they had adequate insurance, up to your limits. With underinsured coverage, the insurer generally pays the damages above what the at-fault driver's policy provides, up to your UIM limit. It does not stack on top of the full amount in most cases, so it is important to know what your limits are.

You still have to prove the claim

UM/UIM claims are not automatic. The Texas Supreme Court has held that an insurer generally has no duty to pay UM/UIM benefits until the other driver's fault and the amount of damages have been established, either by a judgment or by agreement. That means you are proving the same claim you would have made against the at-fault driver, but your own insurer is now the party on the other side.

Your insurer owes you a contract, but it will still evaluate the claim the way any insurer does. It may dispute fault, argue that your injuries were pre-existing, or question the need for treatment. Documentation from the beginning is what makes the claim hard to dispute.

Do not release the at-fault driver before you talk to your insurer

If the at-fault driver has a small policy and their insurer offers the limits, the offer can look attractive. Many UM/UIM policies contain a consent-to-settle provision. Signing a release with the at-fault driver without your own insurer's consent can put the UIM claim at risk, because the release can affect the insurer's right to pursue the driver.

The safe order is to notify your insurer, get its position in writing, and only then finalize a settlement with the driver. This is one of the most common and most expensive mistakes in underinsured motorist claims.

Personal injury protection and medical payments

Insurers must also offer personal injury protection under Insurance Code section 1952.152, with a minimum of 2,500 dollars, unless it is rejected in writing. PIP pays medical bills and a portion of lost income regardless of who was at fault, and using it does not reduce what you can recover from the at-fault party.

Some policies carry medical payments coverage, which is a separate optional benefit that pays medical bills without regard to fault. Check the declarations page of your policy for both, because you may have coverage you have not used.

Repairing the car when the other driver has no insurance

Your collision coverage pays for your vehicle's damage after your deductible, whoever caused the crash. Texas also has uninsured motorist property damage coverage, which is subject to a deductible set by statute and may be a lower-cost route for vehicle damage in an uninsured driver crash.

Collision coverage and UM property damage each have their own rules, so ask your insurer which one applies and what your out-of-pocket cost will be before you authorize repairs.

Other sources of recovery beyond the driver

The at-fault driver's policy is not always the only place to look. A thorough review asks who else may be responsible and what other coverage exists.

• The vehicle owner, if the driver had permission to use a borrowed or company car
• The driver's employer, if the driver was working at the time
• A household member's policy that covers you as a resident relative
• A rideshare company's policy, if either driver was logged into the app
• A bar or restaurant that overserved an intoxicated driver, under Alcoholic Beverage Code Chapter 2

Suing the uninsured driver directly

You can sue an uninsured driver personally and win a judgment, but collecting is often difficult if the person has few assets. Texas Transportation Code Chapter 601 provides that a driver's license and vehicle registration can be suspended if a judgment from a crash goes unpaid, which is leverage but not a guaranteed path to payment.

That is why a person's own UM/UIM coverage is often the most realistic source of recovery. The claim against the driver and the claim against your insurer can sometimes be handled together, and how they are coordinated matters.

Common questions

Common questions