Texas Insurance Code section 1952.101 requires every auto liability policy to include uninsured and underinsured motorist coverage unless a named insured rejects it in writing. It protects you when the at-fault driver has no insurance or not enough. Many Texans have it without knowing. Owsley Law Firm handles UM/UIM claims and charges no fee unless we win.
About one in seven Texas drivers is uninsured, according to the Insurance Research Council’s 2023 estimate. Many others carry only the 30/60/25 minimum. Uninsured and underinsured motorist coverage is often the difference between a full recovery and an unpaid hospital bill.
Because the coverage is required unless rejected in writing, the first step after a crash is to check whether a written rejection exists. This page explains how UM/UIM works and the rules that shape these claims.
Is uninsured motorist coverage required in Texas?
Insurers must include it in every auto liability policy, but a named insured can reject it in writing.
A written rejection must be signed by a named insured, and insurers keep the form in their files. If the insurer cannot produce a valid rejection, the coverage applies. That is why one of the first requests in a serious uninsured or underinsured claim is a copy of the policy, the declarations page, and any rejection form the insurer relies on.
If there is no written rejection, the coverage applies. Once rejected, the insurer does not have to add it to renewals unless the named insured requests it in writing. The coverage must be at least the limits required by Chapter 601 of the Transportation Code.
What does underinsured motorist coverage pay?
What you are legally entitled to recover from the underinsured driver, up to your policy limit, reduced by the amount recovered or recoverable from that driver’s insurer.
Insurance Code section 1952.106 sets that formula. If your damages are $100,000, the at-fault driver has $30,000, and you have $50,000 in UIM coverage, UIM can pay up to $50,000 toward the remaining $70,000.
Does UM coverage apply to hit-and-run crashes?
Yes, if there was actual physical contact between the unknown vehicle and you or your property.
Section 1952.104 requires actual physical contact when the at-fault driver is unknown. A phantom driver who forced you off the road without touching your vehicle may not qualify.
When does the insurer have to pay UIM benefits?
Under Brainard v. Trinity Universal Insurance Co., the insurer’s duty to pay generally arises once liability and the amount of damages are established.
This means a UIM claim can require proving the at-fault driver’s fault and your damages against your own insurer. Many policies also require the insurer’s consent before you settle with the at-fault driver, so coverage terms should be checked first.
- Confirm no written rejection exists
- Notify your insurer promptly
- Check consent-to-settle terms before accepting limits
- Document all damages beyond the other policy
Does UM/UIM cover property damage?
It can. Texas UM/UIM coverage protects against bodily injury and property damage caused by uninsured or underinsured drivers, subject to policy terms and deductibles.
Section 1952.101 defines the coverage to include property damage from the ownership, maintenance, or use of a motor vehicle. Policies often apply a deductible to the property damage portion. Bodily injury and property damage limits are listed separately on the declarations page.
If you have collision coverage, it may be simpler to use it for the vehicle and pursue UM for injuries. The best path depends on deductibles and limits.
What should you do to make a UM/UIM claim?
Get your declarations page, notify your insurer, and avoid settling with the at-fault driver before checking consent requirements.
Your own insurer becomes an adversary in a UIM claim. It will evaluate fault and damages like any other insurer. Treat recorded statements with the same care.
How it is proven after a crash
- Your policy declarations page
- Any written rejection form
- The at-fault driver’s policy limits
- Medical bills and income records
- Proof of physical contact in hit-and-run cases
Mistakes that cost people money
- Assuming you rejected UM coverage without checking
- Settling with the other driver without your insurer’s consent
- Giving your own insurer a careless recorded statement
- Waiting to report a hit-and-run
Frequently asked questions
Will my rates go up if I use UM coverage?
Rate decisions depend on your insurer and policy terms, so ask your insurer directly before assuming either way.
Do I have UM coverage?
Probably, unless a named insured rejected it in writing. Check your declarations page.
Can I use UIM if the other driver had the minimum?
Yes, UIM can pay the difference up to your limit, reduced by the other driver’s coverage.
Does UM cover me as a pedestrian?
Many policies cover the insured as a pedestrian. The policy language controls.
How long do I have to file?
Generally two years from the crash under section 16.003, plus your policy’s notice terms.
This page is general information about Texas law and is not legal or medical advice. Every case depends on its own facts. Contact the firm for a free review of yours.
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