Understanding Uninsured and Underinsured Motorist Coverage in Texas

The Problem of Uninsured Drivers on Texas Roads

Texas requires every driver to carry minimum liability insurance of $30,000 per person, $60,000 per accident for bodily injury, and $25,000 for property damage. These minimums are often referred to as 30/60/25 coverage. Despite this legal requirement, the Insurance Research Council estimates that approximately 14 to 20 percent of Texas drivers are uninsured at any given time.

That means every time you get behind the wheel, there is roughly a one in five chance that the other drivers around you have no insurance at all. And even drivers who do carry insurance often carry only the state minimum, which is far too low to cover the costs of a serious accident. A single emergency room visit, surgery, and follow-up care can easily exceed $100,000. The $30,000 per person minimum is simply not enough.

What Is UM/UIM Coverage

Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance at all. Underinsured motorist (UIM) coverage protects you when the at-fault driver has insurance, but not enough to cover your damages.

Under Texas Insurance Code Section 1952.101, every auto insurance company in Texas must offer UM/UIM coverage to its policyholders. The coverage is automatically included unless you specifically reject it in writing. If your insurer failed to obtain a valid written rejection from you, you may have UM/UIM coverage even if you do not realize it.

How UM Coverage Works in Texas

If an uninsured driver causes an accident and injures you, you can file a claim under your own UM policy. Your insurance company steps into the shoes of the at-fault driver's insurer and pays your claim up to your policy limits.

You must still prove that the other driver was at fault. The UM claim is not automatic simply because the other driver had no insurance. You need evidence of negligence, just as you would in any personal injury claim. Police reports, witness statements, photos, and medical records all play a role in establishing liability.

One important distinction under Texas law is that UM claims are resolved through the legal system, not through internal insurance arbitration, unless your policy specifically includes an enforceable arbitration clause. The Texas Supreme Court has held that UM disputes are essentially tort claims and the insured has the right to a jury trial [*Brainard v. Trinity Universal Insurance Co.*, 216 S.W.3d 809 (Tex. 2006)].

How UIM Coverage Works in Texas

UIM coverage fills the gap between the at-fault driver's policy limits and your actual damages. For example, if the at-fault driver has $30,000 in liability coverage but your damages total $150,000, your UIM policy can cover the remaining $120,000 up to your UIM limits.

Under Texas law, the UIM carrier is entitled to a credit for the amount paid by the at-fault driver's liability carrier. This means your UIM insurer only pays the difference between what the at-fault driver's insurance paid and your total damages, capped at your UIM policy limit [*Brainard v. Trinity Universal Insurance Co.*, 216 S.W.3d 809 (Tex. 2006)].

This is why it is important to carry UIM limits that are high enough to meaningfully protect you. If you carry only $30,000 in UIM coverage and the at-fault driver also has $30,000, there is no gap for your UIM policy to fill. Higher limits give you a real safety net.

Stacking UM/UIM Coverage

Texas law permits "stacking" of UM/UIM coverage in certain situations. Stacking means combining the coverage limits from multiple vehicles on the same policy to increase the total amount available.

Under Texas Insurance Code Section 1952.106, if you have multiple vehicles on a single policy, you may be entitled to stack the UM/UIM limits from each vehicle. For example, if you have $100,000 in UM coverage on each of three vehicles, stacking could give you $300,000 in total UM coverage.

However, many insurance companies include anti-stacking provisions in their policies. Whether these provisions are enforceable depends on the specific policy language and circumstances. An experienced attorney can review your policy and determine whether stacking applies in your case.

Hit and Run Accidents and UM Coverage

If you are the victim of a hit and run accident in Texas, your UM coverage may apply even though the at-fault driver was never identified. Under most Texas UM policies, a hit and run qualifies as an "uninsured motorist" situation because the unknown driver effectively has no insurance available to you.

To make a UM claim for a hit and run, you generally need independent evidence that another vehicle was involved. This can include witness testimony, paint transfer on your vehicle, surveillance footage, or a police report documenting the incident. Texas courts have consistently required some corroborating evidence beyond the claimant's own testimony to establish that the phantom vehicle existed.

Common Mistakes That Hurt UM/UIM Claims

Rejecting UM/UIM coverage to save money on premiums. Many Texans decline this coverage without understanding what they are giving up. The cost of UM/UIM coverage is modest compared to the financial devastation of being hit by an uninsured driver.

Settling with the at-fault driver's insurance before notifying your UIM carrier. Under most UIM policies, you must give your own insurer notice and an opportunity to consent before settling with the at-fault party. Failing to do so can jeopardize your UIM claim.

Assuming your insurance company will treat your UM/UIM claim fairly. Even though you are filing a claim under your own policy, your insurer has the same financial incentive to minimize the payout. UM/UIM claims are adversarial, and you need an attorney to protect your interests.

Protect Your Rights After Being Hit by an Uninsured Driver

If an uninsured or underinsured driver has injured you in Texas, do not assume you have no options. Your own UM/UIM coverage may provide the compensation you need for medical bills, lost wages, and pain and suffering.

Contact Medina and Medina at (512) 883-0012 for a free consultation. We will review your insurance policies, evaluate your claim, and fight to get you the full compensation you deserve. You pay nothing unless we recover for you.