Uninsured/underinsured motorist (UM/UIM) coverage is the part of your own auto policy that pays when the driver who hit you has no insurance, or too little to cover what you lost. You need it because Texas lets drivers carry fairly low liability limits, and a serious crash can cost more than the at-fault driver’s policy will pay.
What Does UM/UIM Coverage Pay For?
Under Section 1952.101 of the Texas Insurance Code, UM/UIM coverage protects insured people who are legally entitled to recover damages from the owner or operator of an uninsured or underinsured vehicle, meaning that driver would owe those damages under Texas law. The coverage must be written in at least the minimum limits Texas sets for liability insurance, and depending on the policy, it can reach these losses:
- Bodily injury, sickness, or disease: Medical bills and lost wages for someone covered by the policy.
- Death: Losses that follow when a crash kills someone covered by the policy.
- Property damage: Vehicle repairs and damage to other property.
Is UM/UIM Coverage Required in Texas?
No. Texas requires insurers to offer it, not drivers to carry it. An insurer cannot issue an auto liability policy in Texas without including UM/UIM coverage, and the coverage comes off only if a named insured, meaning a person listed by name on the policy, rejects it in writing.
A written rejection also carries forward. Once a named insured rejects the coverage, the insurer does not have to add it back to a renewal or reinstated policy from the same or an affiliated insurer unless the named insured asks for it in writing.
Why Texas’s Minimum Insurance Limits Often Aren’t Enough
Under Section 601.072(a-1) of the Texas Transportation Code, the minimum liability coverage Texas has required since January 1, 2011, is:
- $30,000 for bodily injury to or death of one person in one collision
- $60,000 for bodily injury to or death of two or more people in one collision
- $25,000 for damage to other people’s property in one collision
When an at-fault driver carries only these minimums and the injured person’s damages run higher, that driver’s insurer stops paying at the limit. Underinsured motorist coverage exists for that gap.
How Does Underinsured Motorist Coverage Work If the Other Driver Has Some Insurance?
Under Section 1952.106 of the Texas Insurance Code, underinsured motorist coverage pays the amounts the insured is legally entitled to recover from the underinsured driver for bodily injury or property damage. The payment cannot exceed the policy’s own limit, and it is reduced by the amount recovered or recoverable from the at-fault driver’s insurer.
For example, suppose a crash causes $80,000 in damages, the at-fault driver’s insurer pays its $30,000 limit, and the injured driver carries $100,000 in UIM coverage. In that illustration, the UIM coverage would pay the remaining $50,000. The exact payout depends on the policy wording and the facts of the crash.
What If the Other Driver Fled the Scene?
A hit-and-run, where the at-fault driver is unknown, can still be covered by uninsured motorist coverage, but only if there was actual physical contact between the unknown driver’s vehicle and the insured person or their property. Section 1952.104 of the Texas Insurance Code builds that physical-contact condition into every UM policy form.
Records that help show the contact happened include:
- A police report of the crash
- Photos of the damage to the vehicle
- A note of where the vehicles made contact
How Much UM/UIM Coverage Should You Carry?
The right amount depends on what a serious crash could cost, because your UM/UIM limit is the most your own insurer will pay. A limit at the state minimum leaves the same gap that an at-fault driver’s minimum policy does. An agent can quote what UM/UIM limits matching your own liability limits would cost.
Get Help With an Uninsured/Underinsured Motorist Claim From Sharma Injury Law
Being hit by a driver with no insurance, or too little, can leave you paying for someone else’s mistake while your own insurer decides what it owes. Sharma Injury Law is a multi-generational family firm: Bash Sharma founded it in 1994, and he now practices alongside his daughters, attorneys Sharda, Mala, and Anjali Sharma. We handle car accident claims for injured Houston-area drivers, including claims under UM/UIM coverage, and when you call, you talk directly with an attorney, one on one.
Contact us today or call 281-893-8644 to talk through your uninsured/underinsured motorist coverage and what it may pay.
Speak to a Houston Car Accident Lawyer Today
Were you hurt in an accident due to someone else’s negligence? Contact the legal team at Sharma Injury Law at 281-893-8644 to schedule your consultation with a Houston car accident lawyer who will take over the process, and fight to maximize your recovery.
Houston Office Location
14411 Cornerstone Village Dr,
Houston, TX 77014, United States
Tel: 281-893-8644
