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Uninsured and underinsured motorist (UM/UIM) coverage in Texas

What Texas law says about uninsured and underinsured motorist coverage, the part of your own auto policy that can apply when the at-fault driver has no insurance or not enough, with official sources as of October 2026.

7 min readPublished October 20, 2026Last updated October 22, 2026Edited by Joseph Budzinski, CTO, InjuryClaimGuide

The short answer

Uninsured and underinsured motorist coverage (UM/UIM) is part of your own Texas auto policy. It can apply when the driver who caused a crash has no liability insurance, or less than your own UM/UIM limit. Texas insurers must include it unless an insured named in the policy rejects it in writing (Ins. Code §1952.101). Underinsured coverage is measured by what the law entitles you to recover from the other driver, capped at your limit and reduced by what that driver's insurer pays or owes (§1952.106).

This guide explains those rules in general terms, with the official text linked for each one. It is general informational guidance and is not legal advice. The terms of your own policy control what it covers, and your insurer can tell you what your policy includes.

Key facts (as of 2026-10-22)

  • Included unless rejected in writing. UM/UIM must be in every Texas auto liability policy unless an insured named in the policy rejects it in writing (Ins. Code §1952.101(b)-(c)).
  • Minimum limits. UM/UIM may not be offered below the Transportation Code chapter 601 minimums (§1952.105(c)): $30,000 for bodily injury to one person, $60,000 for two or more people and $25,000 for property damage in one collision (Transp. Code §601.072).
  • $250 property damage deductible. UM/UIM property damage coverage is offered subject to a $250 deductible (§1952.105(b)).
  • Unknown driver: physical contact. If the driver who caused the crash is unknown, the policy must require actual physical contact between that vehicle and the insured or the insured's property (§1952.104(3)).
  • Police report for a hit-and-run. The Texas Department of Insurance (TDI) says 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).
  • Where a UM/UIM lawsuit is filed. An action against an insurer over UM/UIM 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).

What is UM/UIM coverage in Texas?

Under Ins. Code §1952.101(a), UM/UIM coverage is the part of an auto liability policy that protects insureds who are legally entitled to recover from owners or operators of uninsured or underinsured motor vehicles for bodily injury, sickness, disease or death, or for property damage. The coverage must be in at least the limits prescribed by Transportation Code chapter 601.

Those chapter 601 minimums are $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 persons in one collision, and $25,000 for damage to property of others in one collision (Transp. Code §601.072). These are the minimum limits a policy must carry. They are not a measure of any injury or claim. Our guide to Texas minimum auto insurance requirements covers those limits in more detail.

TDI describes UM/UIM as coverage that pays if you are hit by someone who did not have insurance or did not have enough to pay your medical and car repair bills, and says insurance companies must offer it to you (TDI, Auto insurance guide).

Can you turn down UM/UIM coverage?

Yes, in writing. An insurer may not deliver or issue an auto liability policy in Texas unless it provides UM/UIM coverage in the policy or supplemental to it (§1952.101(b)).

The coverage does not apply if any insured named in the policy rejects it in writing. After a named insured has rejected UM/UIM, the insurer is not required to provide it in a renewal or reinstated policy from the same insurer or an affiliated insurer unless the named insured requests it in writing (§1952.101(c)).

Whether your policy includes UM/UIM, and at what limits, is shown on your declarations page.

How are UM/UIM limits chosen?

The Insurance Code says how UM/UIM limits are offered:

  • Bodily injury limits must be offered in the amounts the insured wants, but not greater than the bodily injury liability limits of the insured's own policy (§1952.105(a)).
  • Property damage coverage must be offered in the amounts the insured wants, subject to a $250 deductible, but not greater than the property damage liability limits of the insured's own policy (§1952.105(b)).
  • Neither may be offered in amounts less than the chapter 601 minimums (§1952.105(c)).

What counts as uninsured or underinsured?

  • Uninsured motor vehicle. Subject to the terms of the coverage, this includes an insured vehicle whose liability insurer cannot pay because it is insolvent (§1952.102(a)). In a dispute over whether a vehicle was uninsured, the insurer has the burden of proof (§1952.109).
  • Underinsured motor vehicle. This is an insured vehicle with collectible liability coverage whose limits were originally lower than, or have been reduced by payment of other claims from the same accident to less than, the limit of the underinsured coverage in your own policy (§1952.103).

How is an underinsured motorist claim measured?

Underinsured motorist coverage must pay the insured all amounts the insured is legally entitled to recover as damages from the owner or operator of the underinsured vehicle because of bodily injury or property damage. That payment may not exceed the limit in the policy, and it is reduced by the amount recovered or recoverable from the underinsured vehicle's insurer (§1952.106).

Put another way, the statute measures UIM by three things: what the law entitles you to recover from the other driver, your own UIM limit, and what is recovered or recoverable from the other driver's insurer. Each of those depends on the facts of the crash and on the policies involved.

What limits and exclusions must a UM/UIM policy contain?

The policy form for UM/UIM coverage must:

  • provide that, however many persons, policies, vehicles or claims are involved, the total limit for any one person who is injured or whose property is damaged in a single occurrence may not exceed the limit stated in the policy, and the total for all claimants may not exceed the per-occurrence limit stated in the policy;
  • exclude recovery for bodily injury or property damage resulting from the insured's own intentional acts; and
  • require, for an uninsured motorist claim where the owner or operator of the vehicle that caused the injury or damage is unknown, that there was actual physical contact between that vehicle and the insured or the insured's property (§1952.104).

Our hit-and-run guide covers the duties of drivers at the scene and how a crash with an unknown driver is reported.

Can you use collision coverage and UM/UIM for car damage?

If you have both collision coverage and uninsured or underinsured property damage coverage, you may recover under the coverage you choose. If neither is enough on its own to cover all the damage from a single occurrence, you may recover under both. In that case you designate one as primary, pay that coverage's deductible, and the primary coverage must be exhausted before anything is paid under the secondary coverage. You may not recover more than your actual damages under the two together (§1952.107). The statute also sets rules for the secondary coverage's deductible.

Does your insurer get paid back after a UM/UIM payment?

An insurer that pays under UM/UIM coverage is entitled, to the extent of its payment, to the proceeds of any judgment, or of any agreement resolving the claim, that comes from the paid person's right of recovery against whoever is legally responsible for the bodily injury, sickness, disease or death (§1952.108(a)).

Where is a UM/UIM lawsuit filed?

An action against an insurer in relation to UM/UIM coverage, including an action to enforce that coverage, may be brought only in the county in which the policyholder or beneficiary bringing the action lived at the time of the accident, or in which the accident occurred (§1952.110).

UM/UIM after a Houston crash

The same Insurance Code rules apply everywhere in Texas, including Houston and Harris County. For local information:

What you can gather

While you think about your next steps, it can help to keep these in one place:

  • Your auto policy's declarations page, showing whether you have UM/UIM and at what limits
  • Any written rejection of UM/UIM you or another named insured signed
  • The crash report, and any information about the other driver's insurance
  • Photos or video of the vehicles, and any witness names
  • Medical bills and records, and records of missed work and pay
  • Letters or claim numbers from any insurer

About InjuryClaimGuide

InjuryClaimGuide is a legal advertising service. We are not a law firm and do not provide legal advice. We do not recommend or endorse any attorney, and we do not analyze the merits of any potential claim. Routing to participating firms is based on geography, practice area, language, and firm capacity.

Frequently asked questions

Is uninsured motorist coverage required in Texas?
An insurer may not issue a Texas auto liability policy unless it provides uninsured or underinsured motorist coverage in the policy or supplemental to it, but the coverage does not apply if any insured named in the policy rejects it in writing (Ins. Code §1952.101). The Texas Department of Insurance says that if you do not want it, you must tell the company in writing.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault vehicle has no liability insurance; by statute it also includes an insured vehicle whose insurer cannot pay because it is insolvent (Ins. Code §1952.102). Underinsured motorist coverage applies when the at-fault vehicle's liability limits are lower than the underinsured limit in your own policy, or have been reduced below it by other claims from the same accident (§1952.103).
Does UM/UIM coverage apply to a hit-and-run in Texas?
When the owner or operator of the vehicle that caused the injury or damage is unknown, Ins. Code §1952.104(3) requires the policy to call for actual physical contact between that vehicle and the insured or the insured's property. The Texas Department of Insurance also says your uninsured motorist coverage won't pay for a hit-and-run accident if you didn't report it to police. Your policy states its own terms.
How is underinsured motorist coverage measured in Texas?
Under Ins. Code §1952.106, it pays the amounts the insured is legally entitled to recover as damages from the underinsured driver because of bodily injury or property damage, up to the policy limit, reduced by the amount recovered or recoverable from that driver's insurer.
Can InjuryClaimGuide tell me what my UM/UIM claim could bring?
No. InjuryClaimGuide is a legal advertising service, and we do not evaluate any claim. Your insurer can explain your policy, and an attorney can advise you about your specific situation.

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