What If the Driver Who Hit You Was Uninsured or Underinsured?

When you’re hurt in a car accident and it wasn’t your fault, you expect the other driver’s insurance to pay for your medical bills, lost wages, pain and suffering, and vehicle repairs. Unfortunately, many Texans are hit by drivers who have no insurance or not enough insurance to cover the damages they cause.

According to state data, a significant portion of Texas drivers are either uninsured or carry only the state-minimum coverage. That means thousands of responsible drivers face financial hardship every year when they’re struck by someone who can’t pay.

Texas law recognizes this problem and provides certain protections—but only if you act quickly and understand your rights.

Texas Minimum Liability Requirements

Texas requires all drivers to carry a minimum amount of auto liability insurance, commonly referred to as 30/60/25 coverage:

• $30,000 for bodily injury per person
• $60,000 for bodily injury per accident
• $25,000 for property damage

These are the absolute minimums. While this coverage might handle a minor accident, it’s often far too low for crashes that cause serious injuries or total a vehicle. When damages exceed those limits—or when the at-fault driver has no insurance—you can be left holding the bill unless you have additional protection.

Uninsured and Underinsured Motorist (UM/UIM) Coverage in Texas

The best safeguard against uninsured or underinsured drivers is a type of insurance you purchase yourself: Uninsured/Underinsured Motorist (UM/UIM) coverage.

Under Texas Insurance Code §1952.101, every insurer must offer this coverage to anyone buying a personal auto policy. It is automatically included unless you reject it in writing. While not mandatory, it is one of the most valuable forms of protection you can have.

Here’s what these terms mean under Texas law:

• Uninsured Motorist (UM): Covers you when the at-fault driver has no liability insurance, or when the insurer is insolvent.
• Underinsured Motorist (UIM): Applies when the at-fault driver has insurance, but their policy limits are too low to cover all of your damages.

UM/UIM coverage can pay for medical bills, lost wages, pain and suffering, and property damage—up to your policy limits—when the at-fault driver’s insurance can’t.

When UM/UIM Coverage Applies

If you’re hit by an uninsured or underinsured driver in Texas, your UM/UIM policy can step in to pay what the other driver’s insurance doesn’t. Common examples include:

• The other driver has no insurance at all.
• The other driver’s liability limits are too low for the total damages.
• The crash involves a hit-and-run or unidentified driver who cannot be located.
• You’re a passenger in someone else’s car, and the at-fault driver is uninsured.

Both UM and UIM typically include coverage for bodily injury and property damage, though some policies may require a small deductible for property claims.

How UIM Claims Work in Texas

Texas law has specific rules for how UM/UIM claims are handled. According to Texas Insurance Code §1952.106, your UIM insurer must pay all damages you are “legally entitled to recover” from the at-fault driver—up to your policy limits, but reduced by whatever amount you recovered from the other driver’s insurer.

That means you must usually first collect whatever is available from the at-fault driver’s policy. Then, your own insurer pays the remaining damages up to your UIM limit.

For example, if your total damages are $80,000 and the other driver’s liability insurance pays $30,000, your UIM coverage could pay up to $50,000 (depending on your policy).

It’s also worth noting: Texas law does not allow “stacking” across policies in most cases unless explicitly permitted by your policy language. Always review your policy carefully or have an attorney evaluate it.

Steps to Take After an Accident with an Uninsured or Underinsured Driver

1. Call the police and file an accident report: This official record is essential, especially for uninsured or hit-and-run cases.
2. Gather evidence: Take photos, get witness contact information, and document all injuries and vehicle damage.
3. Exchange information: Ask the other driver for insurance details—if they refuse or claim not to have any, note this in your report.
4. Seek medical care immediately: Delays in treatment can hurt both your health and your claim.
5. Notify your insurance company: Texas policies often have strict deadlines for reporting potential UM/UIM claims.
6. Consult a personal injury lawyer: These cases can get complex quickly, especially when multiple insurers are involved.

Common Scenarios and How They Play Out

• Uninsured Driver: If the at-fault driver has no insurance, your UM coverage can pay for your medical expenses, lost wages, pain and suffering, and property damage up to your coverage limits.
• Underinsured Driver: If the other driver carries only the minimum $30,000 policy but your damages are much higher, your UIM coverage can make up the difference after their insurance is exhausted.
• Hit-and-Run: If a driver flees and can’t be identified, your UM coverage can apply. You must report the crash promptly and prove that another vehicle caused the collision.
• Minimal Property Coverage: If your vehicle repair costs exceed the at-fault driver’s $25,000 property damage limit, your UM/UIM property coverage can pay the remaining costs.

Pitfalls and Mistakes to Avoid

• Rejecting UM/UIM coverage: Many people waive this protection to save money on premiums, but doing so can cost far more in the long run.
• Missing deadlines: UM/UIM claims have both policy deadlines and the standard two-year Texas statute of limitations for personal injury claims.
• Assuming your coverage is automatic: You must have purchased UM/UIM or declined it in writing. Check your policy declarations page.
• Underestimating your damages: Insurance adjusters may undervalue claims. Keep detailed records of medical bills, lost income, and long-term effects.
• Believing you can always sue: You can sue the at-fault driver, but if they have no assets or income, collecting a judgment can be difficult or impossible.

What If You Don’t Have UM/UIM Coverage?

If you opted out of UM/UIM coverage, you still have options—but they are limited. You can:

• Sue the at-fault driver personally: Texas gives you two years from the date of the crash to file a lawsuit under Tex. Civ. Prac. & Rem. Code §16.003. However, if the driver has no assets, you may never recover payment.
• Use your health insurance: This can cover medical costs, though you’ll still be responsible for deductibles and copays.
• File a claim under collision coverage: This can repair or replace your vehicle but won’t pay for pain, suffering, or lost wages.

Without UM/UIM, you might have to rely entirely on your own resources and insurance, which is why this coverage is so critical for Texas drivers.

Why You Need a Lawyer for Uninsured/Underinsured Claims

Dealing with insurance companies—especially your own—can be frustrating. Even though UM/UIM coverage is designed to protect you, insurers often:

• Dispute liability or the extent of your injuries
• Delay payments while demanding unnecessary documentation
• Offer low settlements far below the true value of your claim

A personal injury lawyer can investigate the crash, gather evidence, calculate your damages, and negotiate with insurers to maximize your recovery. If the insurer acts in bad faith, your attorney can pursue additional damages under Texas Insurance Code §541.060.

Key Takeaways for Texas Drivers

• UM/UIM coverage is optional—but essential: It’s your best protection against irresponsible drivers.
• Check your policy: Unless you rejected UM/UIM in writing, it should be included.
• Act quickly: File claims promptly and preserve all documentation.
• Consult an attorney: A skilled Texas personal injury lawyer can help you navigate complex insurance rules and ensure your rights are protected.
• Consider higher limits: The cost difference between basic and higher UM/UIM coverage is often small compared to the financial safety it provides.

Guajardo Injury Law has extensive experience representing clients who have been injured by uninsured and underinsured drivers throughout Texas. The firm understands the financial stress and uncertainty that follow when the at-fault driver lacks sufficient insurance coverage. From medical bills and lost wages to long-term recovery costs, these accidents can leave victims struggling to rebuild their lives.

Attorney Mike Guajardo and his legal team are dedicated to standing up for injured Texans and holding insurance companies accountable. They know how to investigate coverage options, negotiate aggressively, and pursue every avenue of compensation available under Texas law.

Victims of crashes involving uninsured or underinsured drivers can turn to Guajardo Injury Law for trusted, experienced representation. The firm offers free consultations and works on a no-fee-unless-we-win basis, ensuring that every client has the opportunity to pursue justice and recover the compensation they deserve.