By the Beverly Law legal team. Updated November 2026.
Hit by an uninsured driver in Texas?
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How UM/UIM coverage works in Texas
An insurer may not issue an auto liability policy in Texas without uninsured or underinsured motorist coverage. The coverage does not apply if any insured named in the policy rejects it in writing, and once rejected, the insurer need not add it back on renewal unless the named insured asks in writing (Ins. Code § 1952.101). The Texas Department of Insurance tells consumers the same thing: insurers must offer it, and you must refuse it in writing (TDI auto insurance guide).
- Injury and property. Unlike California’s, Texas coverage protects against bodily injury and property damage (§ 1952.101(a)). Property damage coverage carries a $250 deductible (§ 1952.105(b)). If you have collision coverage too, you choose which one to use, and if neither alone covers the loss you can use both, designating one as primary (§ 1952.107).
- Limits. Offered up to your liability limits and never below the state minimums of $30,000 per person, $60,000 per crash and $25,000 for property damage (§ 1952.105; Transp. Code § 601.072).
- An insolvent insurer. A car whose liability insurer cannot pay because it is insolvent is treated as uninsured (§ 1952.102(a)).
- Burden of proof. If you and your insurer dispute whether the other car was uninsured, the insurer has the burden of proof (§ 1952.109).
When the other driver has insurance, the claim starts there. See is Texas a no-fault state and our Texas car accident lawyer page.
Hit-and-run drivers and the physical-contact rule
When the owner or operator of the vehicle that caused the crash is unknown, the policy must require actual physical contact between that vehicle and you or your property before UM coverage pays (Ins. Code § 1952.104(3)). A driver who forced you off the road without touching your car does not meet that rule. TDI also warns that UM coverage will not pay for a hit-and-run you did not report to police (TDI).
Unidentified drivers are common in our Texas coverage. After an August 13, 2026 two-vehicle crash on West Slaughter Lane, Austin police asked for help identifying a driver in a dark SUV who left the scene; the victim had minor injuries and a reward of up to $1,000 was offered. Two weeks later, a pedestrian was killed on northbound I-35E near Oak Lawn Avenue in Dallas by a driver who did not stop and had not been identified. Our Texas hit-and-run accident lawyer page covers the criminal side and crime victims’ compensation.
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Underinsured drivers: the offset and who gets paid back
A vehicle is underinsured when its liability limits, at the start or after paying other claims from the same crash, are less than the limit stated in your underinsured coverage (Ins. Code § 1952.103). UIM pays what you are legally entitled to recover, up to your limit, “reduced by the amount recovered or recoverable from the insurer of the underinsured motor vehicle” (§ 1952.106).
- Example. The at-fault driver has the $30,000 minimum. You have $100,000 in UIM and damages of $150,000. After the $30,000 is paid, UIM can pay up to $70,000.
- “Recoverable” matters. Because the statute subtracts what was recoverable, settling with the other driver for less than the full limit can leave a gap that your UIM insurer does not fill.
- Your insurer’s right of recovery. An insurer that pays you UM/UIM benefits is entitled, to the extent of its payment, to the proceeds of any settlement or judgment you later get from the person responsible (§ 1952.108). Tell your insurer before you settle with the other driver.
- No stacking past the stated limit. The policy must provide that, regardless of how many vehicles, policies or claims are involved, one person’s total recovery may not exceed the stated limit (§ 1952.104(1)).
Our FAQ on making a UIM claim explains what to send the adjuster.
How a UIM claim gets resolved in Texas
Texas treats UIM claims differently from other first-party claims. In Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006), the Texas Supreme Court held that a UIM carrier “is under no contractual duty to pay benefits until the insured obtains a judgment establishing the liability and underinsured status of the other motorist.” You do not have to try the case against the at-fault driver; you can settle with that driver and litigate UIM coverage with your insurer. Under Brainard, attorney’s fees for breach of contract under Chapter 38 become available only if the insurer fails to pay within 30 days after the judgment (Brainard opinion; see also Allstate v. Irwin).
Declaratory judgment. In Allstate Ins. Co. v. Irwin, No. 19-0885 (Tex. May 21, 2021), the court held that an insured can use the Uniform Declaratory Judgments Act to establish the insurer’s liability for UIM benefits, and that a trial court may award reasonable and necessary attorney’s fees under that Act when equitable and just. Irwin had settled with the other driver for her $30,000 limit; Allstate offered $500 on his $50,000 UIM claim (opinion).
Where to sue. A suit over UM/UIM coverage may be brought only in the county where you lived at the time of the crash or where the crash happened (Ins. Code § 1952.110).
Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou.
Texas deadlines that affect a UM/UIM claim
| Step | Deadline | Source |
|---|---|---|
| Sue the at-fault driver for injury | 2 years from the crash | CPRC § 16.003 |
| Sue over a death | 2 years from the death | CPRC § 16.003(b) |
| Unfair claim practice suit | 2 years from the act, or from when you discovered it or should have | Ins. Code § 541.162 |
| Report a hit-and-run | No set number of days, but TDI says UM will not pay a hit-and-run you did not report to police | TDI |
TDI notes that most companies also set deadlines for reporting claims, so notify your insurer as soon as possible.
When your insurer handles the claim unfairly
Chapter 541 of the Insurance Code lists unfair settlement practices. They include failing to attempt in good faith a prompt, fair and equitable settlement of a claim once liability has become reasonably clear, failing to explain the basis for a denial or a compromise offer, and refusing to pay without a reasonable investigation (Ins. Code § 541.060). A person who suffers actual damages from those practices can sue (§ 541.151) and recover actual damages, court costs and reasonable attorney’s fees. If the trier of fact finds the insurer acted knowingly, it may award up to three times actual damages (§ 541.152).
The order of the case. In In re State Farm Mut. Auto. Ins. Co., No. 23-0755 (Tex. Apr. 25, 2025), the court held that bad-faith and other extracontractual claims tied to UIM benefits must be abated while the insured establishes entitlement to benefits, and that discovery into those claims is improper until then (opinion). In that case the insured had settled for the other driver’s $50,000 limit, and State Farm offered $689.58 on her $100,000 UIM policy.
If a UM claim takes months, our page on cash advances on uninsured motorist claims explains how those advances work.
How common uninsured drivers are in Texas
The Insurance Research Council estimates that 14.5% of Texas drivers were uninsured in 2023, ranking 19th among the states, just under the national rate of 15.4% (Insurance Information Institute). Local help: our Austin car accident page.
Texas, California and Washington compared
| State | Is the coverage on my policy? | What counts as underinsured | Driver unknown | Remedy for unreasonable handling |
|---|---|---|---|---|
| California | Yes, unless a named insured deleted or reduced it in a signed agreement (Ins. Code § 11580.2(a)) | The other car’s limits are lower than your UM limits (§ 11580.2(p)(2)) | Physical contact, police report within 24 hours, sworn statement to insurer within 30 days (§ 11580.2(b)) | Tort claim for breach of the implied covenant of good faith (Gruenberg v. Aetna) |
| Texas | Yes, unless an insured named in the policy rejected it in writing (Ins. Code § 1952.101) | The other car’s limits are less than your UIM limit (§ 1952.103) | Actual physical contact (§ 1952.104(3)) | Actual damages and fees; up to three times actual damages if done knowingly (Ins. Code § 541.152) |
| Washington | Yes, unless a named insured or spouse rejected it in writing (RCW 48.22.030(4)) | No insurance, or limits less than the damages you are entitled to recover (RCW 48.22.030(1)) | Hit-and-run covered; phantom vehicle needs independent corroboration and a police report within 72 hours (RCW 48.22.030(8)) | Actual damages, fees and costs; up to three times actual damages (RCW 48.30.015) |
Texas and Washington include damage to your car in the coverage the statute requires; California’s UM statute covers injuries only.
Related pages
- California uninsured motorist lawyer
- Washington uninsured motorist lawyer
- Texas hit-and-run accident lawyer
- Texas car accident lawyer
- Car and truck accident questions
- Areas we serve in Texas
Common questions
Do I have uninsured motorist coverage in Texas?
Probably, unless an insured named in your policy rejected it in writing. Texas insurers may not issue an auto liability policy without UM/UIM coverage absent that written rejection (Ins. Code § 1952.101). Check your declarations page.
Does Texas UM coverage pay for my car?
Yes. Texas UM/UIM covers property damage as well as injuries, with a $250 deductible for property damage (Ins. Code §§ 1952.101, 1952.105). You can choose between UM property damage and collision coverage (§ 1952.107).
A driver ran me off the road and kept going. Does UM pay?
Not if the driver is unknown and the car never touched you or your property. Texas requires actual physical contact for an unknown driver (Ins. Code § 1952.104(3)).
Why won’t my insurer pay my UIM claim right away?
Under Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006), the UIM insurer has no contractual duty to pay until a judgment establishes the other driver’s liability and underinsured status. You can get that judgment in a suit against your own insurer, including a declaratory judgment action (Allstate Ins. Co. v. Irwin, No. 19-0885 (Tex. 2021)).
Can I sue my insurer for bad faith?
Yes, under Insurance Code Chapter 541, for actual damages, costs and attorney’s fees, and up to three times actual damages if the insurer acted knowingly (§§ 541.151, 541.152). Courts abate those claims until you establish your right to UIM benefits (In re State Farm, No. 23-0755 (Tex. 2025)).
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Sources
- Tex. Ins. Code § 1952.101
- Tex. Ins. Code § 1952.102
- Tex. Ins. Code § 1952.103
- Tex. Ins. Code § 1952.104
- Tex. Ins. Code § 1952.105
- Tex. Ins. Code § 1952.106
- Tex. Ins. Code § 1952.107
- Tex. Ins. Code § 1952.108
- Tex. Ins. Code § 1952.109
- Tex. Ins. Code § 1952.110
- Tex. Ins. Code § 541.060
- Tex. Ins. Code § 541.151
- Tex. Ins. Code § 541.152
- Tex. Ins. Code § 541.162
- Tex. Transp. Code § 601.072
- Tex. Civ. Prac. & Rem. Code § 16.003
- Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006)
- Allstate Ins. Co. v. Irwin, No. 19-0885 (Tex. May 21, 2021)
- In re State Farm Mut. Auto. Ins. Co., No. 23-0755 (Tex. Apr. 25, 2025)
- Texas Department of Insurance, Auto insurance guide
- Insurance Information Institute, Facts + Statistics: Uninsured motorists (Insurance Research Council 2023 estimates)
Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 6, 2026.