Do I Need Uninsured / Underinsured Motorist Coverage in Texas?

Texas Auto Insurance

Do I Need Uninsured / Underinsured Motorist Coverage in Texas?

Yes, most Texas drivers should carry uninsured and underinsured motorist coverage. It is not required by law. Insurers must offer it, and you can reject it only in writing. The coverage matters because a large share of Texas vehicles still have no matching liability policy, and the state minimum of 30/60/25 often cannot pay a serious injury claim.

What UM and UIM Coverage Do in Texas

Uninsured motorist coverage, often shortened to UM, applies when the driver who caused the crash has no auto liability insurance. Underinsured motorist coverage, or UIM, applies when that driver has insurance, but the limits are too small to pay your damages. In Texas the two coverages are usually sold together as UM/UIM.

Texas Insurance Code §1952.101 requires every auto liability policy issued in the state to include UM/UIM unless a named insured rejects it in writing. A verbal “no thanks” on a phone quote is not enough. If there is no signed rejection, the coverage is supposed to attach. A rejection also stays in place on later renewals with the same insurer or an affiliate unless you ask for the coverage back in writing.

UM/UIM is first-party coverage. You claim against your own policy after an at-fault driver cannot pay. It is not a substitute for the liability Texas requires to register a vehicle.

How Common Are Uninsured Drivers in Texas?

The Texas Department of Insurance has warned that more than 2.4 million registered vehicles in the state were not matched to an insurance policy, about 12% of registered vehicles. Insurance Research Council estimates put Texas closer to 14% to 15% of drivers uninsured. Either figure is high enough that “the other person will have insurance” is not a safe plan.

Underinsurance is the quieter problem. A driver can be legal at 30/60/25 and still leave you with unpaid hospital bills after one emergency-room visit, one surgery, or one totaled late-model truck. UIM is the coverage that tries to fill that gap.

Does Your Regular Auto Policy Already Help?

Sometimes, but only in pieces. A standard Texas auto policy is a stack of different coverages, not one pot of money.

• Liability pays other people if you cause the crash. It does not pay your own injuries or your own car when someone else is at fault and uninsured.
• Collision can repair or total your vehicle after a crash, including many hit-and-runs, subject to your deductible. It does not pay medical bills, lost wages, or pain and suffering.
• PIP can pay limited medical bills and a portion of lost wages after a crash, even if fault is still being sorted out. Texas insurers must offer PIP, and it can also be rejected in writing.
• Health insurance may pay treatment, minus deductibles, copays, and exclusions. It usually will not pay vehicle damage, pain and suffering, or long-term wage loss.

That is why UM/UIM still has a job when you already have collision or a health plan. Collision is a vehicle-repair tool. UM/UIM is the coverage that can pay injury damages the other driver should have paid. The difference between a cheap liability-only policy and broader protection is explained in liability vs. full coverage in Texas and what liability-only auto insurance covers.

Who Needs This Coverage?

Anyone who drives or rides in Texas cars can need it. You do not control whether the next at-fault driver bought insurance, kept the policy in force, or carried more than the legal minimum.

UM/UIM is especially useful if:

• You drive in cities or corridors with higher unmatched-insurance rates
• You or your passengers would struggle to absorb medical bills and time off work
• Your car is worth more than the other driver’s $25,000 property-damage limit
• You walk, bike, or ride as a passenger and can still be an insured person under your policy
• You want hit-and-run protection that can include injury damages, not only a collision claim on the car

A paid-off older car can make collision optional. It does not make UMBI optional in the same way. The injury exposure stays even if the vehicle is inexpensive. For the full menu of Texas coverages, see the Texas auto insurance guide.

How Much UM/UIM Coverage Can You Buy?

Insurers must offer UM/UIM at least at the Texas liability minimum of 30/60/25 when the coverage is included. You can usually buy higher limits. A practical target is to match your own bodily injury liability limits. If you carry 100/300 liability, ask for 100/300 UMBI. Matching keeps one household from being better protected against the lawsuits it causes than against the injuries it suffers.

Property-damage UM should be high enough to replace the vehicles you drive, after the $250 UMPD deductible. A $25,000 UMPD limit is the statutory floor idea, not a good fit for a $45,000 SUV.

Texas generally does not let you multiply UM limits by the number of cars listed on one policy. Separate household policies can raise more complicated questions. Do not assume stacking. Read the policy and ask the agent what limit applies to one crash.

How Much Does Uninsured Motorist Coverage Cost in Texas?

UM/UIM is usually one of the cheaper parts of a Texas auto policy. The premium depends on ZIP code, driving record, chosen limits, household drivers, and the insurer. Published consumer estimates often land around $8 to $25 a month for basic limits, or roughly $40 to $80 a year for minimum UMBI, with higher limits costing more. National averages are not a Texas quote.

The cost should be compared with the risk: about one in eight registered Texas vehicles may have no matching policy, and many insured drivers carry only 30/60/25. Rejecting UM/UIM to save a small monthly amount leaves the injury claim resting on the other driver’s assets, your health plan, and any collision coverage you kept.

What Happens After a Claim?

If an uninsured or underinsured driver hits you, document the scene, call the police, get medical care, and report the loss to your insurer. A UM/UIM claim is made against your own company, so the file can feel more like a negotiation than a simple third-party claim. Keep the declarations page, the signed rejection or selection form, photos, the crash report, and medical records. The basic claim path is covered in the Texas car insurance claim process.

If you already rejected UM/UIM and want it back, request it in writing. The named insured has to ask. Adding it midterm or at renewal is usually simple. Waiting until after a hit-and-run is too late for that crash.

Frequently Asked Questions