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Texas UM/UIM coverage, Insurance Code §1952.101: the statute text explained

The official text of the Texas law on uninsured and underinsured motorist coverage, including the written-rejection rule, explained in plain language.

7 min readPublished October 27, 2026Last updated October 27, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Texas Insurance Code §1952.101 says an insurer may not issue an automobile liability insurance policy in Texas unless it provides uninsured or underinsured motorist (UM/UIM) coverage, and that the coverage "does not apply if any insured named in the insurance policy rejects the coverage in writing" (Ins. Code §1952.101). The same subchapter defines an underinsured vehicle, sets rules the policy form must contain, including a physical-contact rule when the other driver is unknown, and says how underinsured coverage is reduced by what is recovered from the other driver's insurer. The policy itself states its terms. An attorney can tell you how these rules apply to a specific situation.

This entry provides general informational guidance and is not legal advice.

Key facts (as of 2026-10-27)

  • Included unless rejected in writing. An insurer must provide UM/UIM coverage in or supplemental to an auto liability policy, unless an insured named in the policy rejects it in writing (§1952.101(b)-(c)).
  • A rejection carries over to renewals. Unless the named insured requests it in writing, the insurer is not required to provide the coverage in a renewal or reinstated policy if the named insured rejected it before (§1952.101(c)).
  • At least the Chapter 601 limits. The coverage is defined as coverage "in at least the limits prescribed by Chapter 601, Transportation Code" (§1952.101(a)).
  • Unknown driver: physical contact. To recover under uninsured motorist coverage when the other vehicle's owner or operator is unknown, actual physical contact must have occurred (§1952.104(3)).
  • Underinsured coverage is reduced by the other insurer's payment. It pays up to the policy limit, reduced by the amount recovered or recoverable from the other vehicle's insurer (§1952.106).
  • Last amended in 2007. The history line for §1952.101 lists Acts 2007, 80th Leg., R.S., chs. 730 and 921 as its most recent amendments.

What does §1952.101 say?

The official text of Tex. Ins. Code §1952.101, as published by the Texas Legislature:

Sec. 1952.101. UNINSURED OR UNDERINSURED MOTORIST COVERAGE REQUIRED. (a) In this section, "uninsured or underinsured motorist coverage" means the provisions of an automobile liability insurance policy that provide for coverage in at least the limits prescribed by Chapter 601, Transportation Code, that protects insureds who are legally entitled to recover from owners or operators of uninsured or underinsured motor vehicles damages for bodily injury, sickness, disease, or death, or property damage resulting from the ownership, maintenance, or use of any motor vehicle.

(b) An insurer may not deliver or issue for delivery in this state an automobile liability insurance policy, including a policy provided through the Texas Automobile Insurance Plan Association under Chapter 2151, that covers liability arising out of the ownership, maintenance, or use of any motor vehicle unless the insurer provides uninsured or underinsured motorist coverage in the policy or supplemental to the policy.

(c) The coverage required by this subchapter does not apply if any insured named in the insurance policy rejects the coverage in writing. Unless the named insured requests in writing the coverage required by this subchapter, the insurer is not required to provide that coverage in or supplemental to a reinstated insurance policy or renewal insurance policy if the named insured rejected the coverage in connection with that insurance policy or an insurance policy previously issued to the insured by the same insurer or by an affiliated insurer.

Source: Tex. Ins. Code §1952.101, statutes.capitol.texas.gov. Text last checked October 27, 2026.

What does it mean in plain language?

  • It protects the people insured under the policy. The coverage is for insureds who are "legally entitled to recover" from the owner or operator of an uninsured or underinsured vehicle. It is the policyholder's own coverage, not the other driver's.
  • The written-rejection rule. The coverage is part of a Texas auto liability policy unless an insured named in the policy rejects it in writing. A spoken rejection is not what the statute describes.
  • Renewals follow the earlier choice. After a written rejection, the insurer does not have to add the coverage back to a renewal or reinstated policy from the same or an affiliated insurer unless the named insured asks for it in writing.
  • It can cover property damage too. The definition includes bodily injury, sickness, disease, death and property damage.
  • The declarations page shows what a policy has. The Texas Department of Insurance (TDI) says the first page of a policy, the declaration page, has a summary of the policy, including coverages, dollar limits and deductibles (TDI, Auto insurance guide).

What else does the subchapter say?

Uninsured and underinsured vehicles

The official text of §1952.102(a) and §1952.103:

(a) For purposes of the coverage required by this subchapter, "uninsured motor vehicle," subject to the terms of the coverage, is considered to include an insured motor vehicle as to which the insurer providing liability insurance is unable because of insolvency to make payment with respect to the legal liability of the insured within the limits specified in the insurance.

Sec. 1952.103. UNDERINSURED MOTOR VEHICLE. For purposes of the coverage required by this subchapter, "underinsured motor vehicle" means an insured motor vehicle on which there is collectible liability insurance coverage with limits of liability for the owner or operator that were originally lower than, or have been reduced by payment of claims arising from the same accident to, an amount less than the limit of liability stated in the underinsured coverage of the insured's policy.

Source: Tex. Ins. Code §§1952.102-.103. In plain language: a vehicle whose insurer is insolvent can count as uninsured, and a vehicle is underinsured when its liability limits are lower than the underinsured limit on the insured's own policy, either from the start or after paying other claims from the same accident. Section 1952.102(b) lets policy forms exclude certain vehicles from the definition of "uninsured motor vehicle".

When the other driver is unknown

The official text of §1952.104(3), one of the provisions the policy form must contain:

(3) require that, for the insured to recover under the uninsured motorist coverage if the owner or operator of any motor vehicle that causes bodily injury or property damage to the insured is unknown, actual physical contact must have occurred between the motor vehicle owned or operated by the unknown person and the person or property of the insured.

Source: Tex. Ins. Code §1952.104. TDI adds a practical point in its consumer guide: "Your uninsured motorist coverage won’t pay for a hit-and-run accident if you didn’t report it to police" (TDI, Auto insurance guide). Section 1952.104 also requires the policy to provide that total recovery may not exceed the per-person and per-occurrence limits stated in the policy, and to exclude damages resulting from the insured's intentional acts.

How underinsured coverage is reduced

The official text of §1952.106:

Sec. 1952.106. RECOVERY UNDER UNDERINSURED MOTORIST COVERAGE. Underinsured motorist coverage must provide for payment to the insured of all amounts that the insured is legally entitled to recover as damages from owners or operators of underinsured motor vehicles because of bodily injury or property damage, not to exceed the limit specified in the insurance policy, and reduced by the amount recovered or recoverable from the insurer of the underinsured motor vehicle.

Source: Tex. Ins. Code §1952.106. In plain language: underinsured coverage pays no more than the policy limit, and the amount the other driver's insurer pays or must pay is subtracted.

Other rules in the subchapter

  • Limits offered. Bodily injury limits must be offered in the amounts the insured wants, but not above the policy's bodily injury liability limits and not below the Chapter 601 amounts; property damage coverage is subject to a $250 deductible (§1952.105).
  • Collision or UM property damage. An insured with both collision coverage and uninsured or underinsured property damage coverage may recover under the coverage the insured chooses, with rules for using both (§1952.107).
  • The insurer's right of recovery. An insurer that makes a payment under this coverage is entitled, to the extent of the payment, to the proceeds of a judgment or an agreed resolution of the paid person's right of recovery against a person legally responsible for the injury (§1952.108).
  • Burden of proof. "The insurer has the burden of proof in a dispute as to whether a motor vehicle is uninsured" (§1952.109).
  • Where a suit is filed. An action against an insurer about this coverage may be brought only in the county where the policyholder or beneficiary lived at the time of the accident or where the accident occurred (§1952.110).

When was this checked, and can it change?

The text above was last checked on October 27, 2026, against the official text published by the Texas Legislature. The Legislature can amend a statute in any session. It convenes in regular session on the second Tuesday in January of each odd-numbered year (Gov't Code §301.001), so the next regular session begins on January 12, 2027. This entry is scheduled to be rechecked against the official text by April 2027 and again after the 2027 regular session ends.

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Frequently asked questions

Is uninsured/underinsured motorist coverage required in Texas?
Under Tex. Ins. Code §1952.101(b), an insurer may not deliver or issue for delivery in Texas an automobile liability insurance policy unless the insurer provides uninsured or underinsured motorist coverage in the policy or supplemental to the policy. Under §1952.101(c), the coverage does not apply if any insured named in the policy rejects it in writing.
What is an "underinsured motor vehicle" under Texas law?
Section 1952.103 defines it as an insured motor vehicle whose collectible liability coverage limits were originally lower than, or have been reduced by payment of claims from the same accident to, an amount less than the limit stated in the underinsured coverage of the insured's policy.
Does the statute say anything about a hit-and-run driver?
Yes. Section 1952.104(3) says that if the owner or operator of the vehicle that causes the injury or damage is unknown, actual physical contact must have occurred between that vehicle and the person or property of the insured for the insured to recover under the uninsured motorist coverage.
Can InjuryClaimGuide tell me whether my policy covers my crash?
No. InjuryClaimGuide is a legal advertising service. We do not apply the law or a policy to anyone's situation and do not evaluate any claim. Your policy states its own terms, and an attorney can advise you about your specific situation.

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