Introduction
One in seven Texas drivers is uninsured. That means on any given drive across Texas, you’re statistically likely to encounter someone with no insurance.
If you’re in an accident with an uninsured driver and it’s their fault, you could be left to pay your own medical bills, vehicle repairs, and lost wages out of your own pocket—unless you have
Uninsured/Underinsured Motorist (UM/UIM) coverage.
Here’s the thing: Texas law requires insurers to offer UM/UIM, but it doesn’t automatically apply. You have to accept it. Many Texans don’t realize this, and they pay the price after an accident.
This guide explains how UM/UIM works in Texas, why you need it, and the specifics that matter.
The Texas Uninsured Driver Problem
14% of Texas drivers are uninsured. That’s higher than the national average of 12%.
In North Texas specifically, the problem is significant:
If you’re in an accident with any of these drivers and it’s their fault, your medical bills, vehicle damage, and lost wages become your problem—unless you have UM/UIM coverage.
How UM/UIM Coverage Works in Texas
Uninsured Motorist (UM) Coverage
This covers you if you’re hit by a driver with
zero insurance.
Scenario: You’re stopped at a red light in Dallas. An uninsured driver rear-ends you. You have whiplash, medical bills add up to $8,000, and your car needs $5,000 in repairs. The driver is at fault but has no insurance.
With UM coverage: Your insurance pays your medical bills and vehicle damage up to your UM limit.
Without UM coverage: You’re stuck. You pay your own medical bills and vehicle damage. You’d have to sue the driver personally (which is often impossible—they have no assets).
Underinsured Motorist (UIM) Coverage
This covers you if the at-fault driver
has insurance, but not enough to cover your damages.
Scenario: You’re hit by someone with the minimum Texas liability ($30,000). Your injuries require $60,000 in medical care. The at-fault driver’s insurance pays their $30,000 limit. You’re short $30,000.
With UIM coverage: Your insurance pays the additional $30,000 (up to your UIM limit).
Without UIM coverage: You’re short $30,000. You’d have to sue the driver personally or accept the shortfall.
Texas UM/UIM Rules (What You Must Know)
Rule #1: Insurers Must Offer It
Texas law requires every auto insurer to offer UM/UIM coverage. Your insurer can’t opt out.
Rule #2: It Doesn’t Automatically Apply
This is critical: Just because insurers must offer it doesn’t mean you have it. You must accept UM/UIM coverage. If you decline it in writing, you don’t have protection.
What this means: If you told your agent "no UM/UIM" and then hit an uninsured driver, you’re unprotected. It’s your choice, and the insurer fulfilled their obligation.
Rule #3: Coverage Applies Unless Rejected in Writing
If you DON’T actively reject UM/UIM in writing, it’s automatically included in your policy. This is actually pro-consumer—most people have it without realizing.
Check your policy. If you don’t see "Uninsured/Underinsured Motorist" listed with a limit, ask your agent. You might have it and not know.
Rule #4: Texas Is at-Fault (Not No-Fault)
This matters because your own fault percentage determines coverage.
At-fault state rule: You can only use UM/UIM if the other driver is
more than 50% at fault for the accident. If the accident is your fault (or 50/50), UM/UIM doesn’t apply.
Example: You pull into an uninsured driver’s lane. The accident is 70% your fault, 30% theirs. UM/UIM doesn’t cover you because you’re mostly at fault. You’d file a claim on your own collision coverage instead.
Rule #5: No Stacking Across Multiple Vehicles
If you own multiple vehicles,
UM/UIM doesn’t "stack." Your total coverage is your limit, not your limit times the number of vehicles.
Example: You have two cars, each with $50,000 UIM coverage. You’re hit by an underinsured driver. Your total UIM payout is $50,000, not $100,000.
UM/UIM Coverage Limits
Your UM/UIM limit is typically the same as your liability limit, but you can set them differently.
Common Limit Scenarios
Texas minimum liability: 30/60/25
Recommended liability: 50/100/50 or higher
Higher limits available: 100/300/100, 250/500/100, $1,000,000+
Why Your Limit Matters
If you’re hit by an uninsured driver and suffer $150,000 in injuries, but your UM limit is only $50,000:
Higher limits = better protection. The cost difference between $50K and $100K UM is usually just $10–20/month.
What UM/UIM Coverage Includes
Medical Expenses
Lost Wages
Pain and Suffering
Vehicle Damage
What It Doesn’t Include
UM/UIM in Practice: Real Scenarios
Scenario 1: Clear-Cut Uninsured Driver Accident
What happened: You’re hit by an uninsured driver in a parking lot. No question—it’s their fault. You have neck pain and need physical therapy costing $8,000. Your car needs $5,000 in repairs.
Your UM coverage: Pays $8,000 medical + $5,000 vehicle damage (up to your limit)
Outcome: You recover without out-of-pocket cost (minus your deductible)
Scenario 2: Underinsured Driver Accident
What happened: You’re hit by a driver with minimum liability ($30,000). Your injuries require $80,000 in medical care and lost wages. Their insurance pays their $30,000 limit.
Your UIM coverage: Pays an additional $50,000 (up to your UIM limit of $80,000 or higher)
Outcome: You’re fully covered (if your UIM limit is high enough)
Scenario 3: Hit-and-Run
What happened: Someone hits you and leaves. You have no way to identify the driver.
Your UM coverage: Can apply even though you never identified the other driver. You report the accident to police and your insurer.
Outcome: You’re covered under UM, with police report as proof
Scenario 4: Partially Your Fault
What happened: You merge into an uninsured driver’s lane. The accident is 60% your fault, 40% theirs.
Your UM coverage: Doesn’t apply because you’re more than 50% at fault in Texas.
What covers you: Your own collision or comprehensive coverage instead
Outcome: You’re covered, but through different coverage, and you may have a higher deductible
UM/UIM vs. Collision Coverage: Key Difference
These are different coverages. UM/UIM covers damage caused by uninsured/underinsured drivers when it’s their fault. Collision covers any collision damage whether it’s your fault or not. You need both: UM/UIM covers the gap when an underinsured driver causes damage, and collision covers damage you cause or damage to your car if the other driver is uninsured and unidentified.
Texas UM/UIM Cost
UM/UIM coverage is relatively inexpensive—usually $10–30/month for standard limits.
Cost varies by:
Cost comparison:
Is it worth it? Absolutely. The potential payout (if you’re hit by an uninsured driver) far exceeds the cost. One accident with serious injury could mean $50,000–$150,000+ in damages. Paying $20/month for coverage is a no-brainer.
How to Accept or Decline UM/UIM in Texas
Check Your Policy
Look at your auto insurance declarations page. You should see a line item for "Uninsured/Underinsured Motorist." It will have a limit (like $50,000 or $100,000).
If You Want It (Recommended)
Do nothing if it’s already on your policy. If it’s not:
If You Want to Decline (Not Recommended)
You must decline in writing. This is important—verbal declination doesn’t count in Texas.
Warning: Declining UM/UIM is risky. You’re betting you’ll never be in an accident with an uninsured driver. That’s not a good bet in Texas.
Special Cases & Texas Rules
If You Have Multiple Vehicles
Each vehicle has its own UM/UIM limit, but coverage doesn’t "stack" (total across vehicles). Your coverage per accident is your per-accident limit, regardless of how many cars you own.
If Someone Else Hits Your Car
UM/UIM applies if the at-fault driver is uninsured/underinsured. It doesn’t matter if they were visiting Texas or live here. If they have no insurance (or not enough), you’re covered.
If You’re Hit by a Commercial Vehicle
UM/UIM applies to commercial vehicles, too. If a commercial truck (lacking proper coverage) hits you, UM/UIM covers the gap.
If You’re Hit in Another State
Your UM/UIM follows you. If you’re driving in Oklahoma, Louisiana, or any state and are hit by an uninsured driver, your Texas UM/UIM policy applies.
Action Steps: Ensure You’re Protected
When to File a UM/UIM Claim
You’d file a UM/UIM claim if:
How to file:
Why TAP Insurance Recommends UM/UIM
At TAP Insurance Agency, we recommend UM/UIM to every client—especially in North Texas where uninsured drivers are prevalent.
The cost is minimal. The protection is massive. In an at-fault state like Texas where uninsured drivers roam, UM/UIM is essential.
Your next step: Make sure you have it. If you don’t,
call (800) 666-2254 or text (817) 646-6700. We’ll review your coverage and add UM/UIM if needed.
One accident with an uninsured driver could cost you $50,000–$150,000+. Coverage costs less than $30/month. That’s the best insurance deal you’ll find.
Related Resources
TAP Insurance Agency — Rhome, TX | (800) 666-2254 | agent@tapinsuretx.com |
www.tapinsuretx.com
