Uninsured and Underinsured Motorist Claims in Texas — What You Need to Know

The Texas Uninsured Driver Problem

Texas consistently ranks among the states with the highest percentage of uninsured drivers. Studies estimate that approximately 1 in 7 Texas drivers — roughly 14% — are uninsured at any given time. On certain roads and in certain areas, the rate is significantly higher.

Even insured drivers frequently carry only the state minimum of $30,000 per person — which is grossly inadequate for serious injuries. A hospitalization, surgery, and recovery for a moderate injury can easily exceed $100,000. A seriously injured accident victim whose damages exceed the at-fault driver’s policy limits faces a significant gap that only UM/UIM coverage — or suing the driver personally — can fill.

UM vs. UIM — What’s the Difference?

In Texas, UM and UIM coverage are typically sold together as a combined policy provision. Check your declarations page to confirm your coverage amounts.

How UM/UIM Coverage Works in Texas

In Texas, insurance companies are required to offer UM/UIM coverage to policyholders. You can reject it in writing, but if you have not signed a written rejection, you should have it on your policy (Tex. Ins. Code §1952.101 et seq.).

UIM coverage pays the difference between:

• Your total damages (economic + non-economic)
• The amount recovered from the at-fault driver’s liability insurance

Up to your UIM policy limit. For example: $200,000 in damages, $30,000 collected from at-fault driver, $100,000 UIM limit = UIM pays $100,000, leaving a $70,000 uncovered gap (which would require suing the at-fault driver personally to recover).

Filing a UM/UIM Claim in Texas

To file a UIM claim in Texas, you must first exhaust the at-fault driver’s liability coverage — or demonstrate that the at-fault driver is uninsured. You then notify your own insurance company of the UIM claim.

Key procedural requirements:

• Notify your insurer promptly — most policies require timely notice. Do not wait.
• Do not settle with the at-fault driver’s insurer without your insurer’s consent — settling and releasing the at-fault driver before notifying your UIM carrier may waive your UIM claim
• Cooperate with your own insurer’s investigation — but do so with legal guidance; your own insurer is not necessarily on your side in a UIM dispute
• The two-year statute applies to UIM claims — from the date of the accident

Dealing With Your Own Insurance Company

One of the most surprising aspects of UM/UIM claims is that your own insurance company will often fight to minimize what it pays you — just as aggressively as the at-fault driver’s insurer would. Your insurer has a financial interest in paying as little as possible on your UIM claim.

Common tactics your own insurer may use to minimize a UIM claim:

• Disputing the severity of your injuries
• Arguing that some of your injuries preexisted the accident
• Claiming that the at-fault driver’s policy limits were adequate for your damages
• Delaying the claim to pressure you toward a low settlement
• Requesting an independent medical examination by a physician they select

Hit-and-Run Accidents in Texas

In a hit-and-run accident where the at-fault driver flees and cannot be identified, your UM coverage is your primary source of recovery. Texas UM coverage covers hit-and-run accidents as long as:

• The accident is reported to law enforcement
• The bodily injury or death results from physical contact with the unidentified vehicle (in most policies — check your specific policy language)
• You notify your insurer promptly

After a hit-and-run, document everything immediately — photographs of the scene, your vehicle damage, your injuries, any witnesses, and any surveillance cameras nearby. File a police report as soon as possible.