By Andrew K. Gardner, founding attorney, A. K. Gardner Law, PLLC
You probably picked your car insurance by looking at the monthly price. When you signed up, the agent may have asked whether you wanted “uninsured/underinsured motorist coverage.” Plenty of Texans say no to save a few dollars, or sign a rejection form without reading it. But what is uninsured or underinsured motorist coverage, and is it worth saving a few dollars? As a Houston car crash lawyer, I see where that decision leads. Someone gets badly hurt by a driver with no insurance, or with a bare-minimum policy, and finds out the only coverage that could have paid for their injuries is the coverage they turned down.
So, is UM/UIM insurance worth it? For most Houston drivers, yes, and it isn’t close. This post explains what the coverage does, what Texas law says about it, and how to tell whether you have enough. If you’ve already been hurt in a crash, see our Houston car accident lawyer page for how we handle these cases.
What Is UM/UIM Coverage?
In Texas, everyone is required by law to carry a certain amount of motor vehicle insurance. What some people may not realize is that the insurance you’re required by law to have is actually insurance that protects other drivers from your fault in a crash. The basic, minimum level insurance you can carry doesn’t actually protect you. Uninsured Motorist and Underinsured Motorist (UM/UIM) coverage is the insurance that protects you.
UM/UIM are two related coverages sold together on a Texas auto policy:
- Uninsured motorist (UM) coverage pays when the at-fault driver has no liability insurance at all. In Texas, it can also cover hit-and-run crashes.
- Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to cover your damages.
The key point is that UM/UIM protects you, not the other driver. Your liability coverage pays for damage you cause to others. UM/UIM steps in when someone else causes the crash and can’t pay for the damage they did to you.
What UM/UIM Can Pay For When you Have a Houston Car Crash Lawyer
Depending on your policy, UM/UIM bodily injury coverage can pay for:
- Medical bills, in the past and in the future
- Lost wages and lost earning capacity
- Pain and suffering and mental anguish
- Physical impairment and disfigurement
Many of these losses are easy to underestimate. We break them down in the hidden costs of a serious injury and how to recover them.
Your insurance company is required to offer you UM/UIM coverage, but you are permitted to reject this insurance when you sign up. UM/UIM is an extra fee, so many people reject the UM/UIM to save a few dollars every month, not realizing the risk they are taking on.
When you get in a crash caused by someone with too little insurance or no insurance at all, a Houston car crash lawyer can get your UM/UIM insurance to help cover more medical treatment or put more money in your pocket for pain and suffering.
Why a Houston Car crash Lawyer Says Texas Drivers Need UM/UIM Coverage
Too Many Drivers Carry No Insurance
Texas law requires drivers to carry liability insurance. Plenty don’t. The Insurance Research Council estimates that about 15.4% of U.S. drivers were uninsured in 2023, roughly one in seven. Texas estimates vary by source, from about 14% to as high as 20%.
In a metro area the size of Houston, with heavy traffic on I-45, I-10, 610, and Beltway 8, that means you share the road with a lot of drivers who couldn’t pay for a single ER visit. If one of those drivers causes a crash, you’re stuck with the bill.
The State Minimum Is Not Much Money
Even drivers who follow the law may only carry Texas’s minimum liability limits, often called 30/60/25:
| Coverage | Texas Minimum |
|---|---|
| Bodily injury, per person | $30,000 |
| Bodily injury, per accident | $60,000 |
| Property damage, per accident | $25,000 |
The Texas Department of Insurance’s auto insurance guide explains these minimums and the optional coverages you can add.
These numbers may seem like a lot, but $30,000 goes fast. One ambulance ride, an ER workup, and an MRI can eat a large share of it before you’ve seen an orthopedic surgeon. If you need surgery, miss months of work, or have lasting pain, $30,000 may cover only a small part of what you’ve lost.
That’s where underinsured coverage matters. In Texas, if the at-fault driver’s policy isn’t enough to cover your damages, your UIM coverage can pay the rest, up to your own UIM limit.
Hit-and-Run Crashes
When a driver hits you and flees, there’s no one to make a claim against. Texas UM coverage can apply to hit-and-run crashes, but the statute has a strict rule. Under Texas Insurance Code § 1952.104, actual physical contact must have occurred between the unknown driver’s vehicle and you or your property. If a car ran you off the road without touching you, talk to a lawyer before you assume you’re covered. For more, read what to do after a hit-and-run and the warning signs you need a hit-and-run lawyer.
What Texas Law Says About UM/UIM from a Houston Car Crash Lawyer
Under Texas Insurance Code § 1952.101, an insurer can’t issue an auto liability policy in Texas without UM/UIM coverage unless a named insured rejects it in writing.
This has three practical consequences:
- You have to opt out. If you never signed a written rejection, you may have UM/UIM coverage even if you don’t remember buying it.
- A rejection carries forward. If you rejected UM/UIM once, your insurer doesn’t have to add it back when the policy renews. It stays off until you ask for it in writing.
- Check your paperwork. If an agent had you sign a stack of forms, one of them may have been a rejection. Your declarations page shows what you actually have.
Texas insurers must also offer Personal Injury Protection (PIP), which pays medical bills and lost wages no matter who caused the crash. Like UM/UIM, you get it unless you reject it in writing, and it works well alongside UM/UIM.
Is UM/UIM Worth the Cost?
The Cost Is Usually Small
UM/UIM is usually one of the cheaper parts of an auto policy. The exact premium depends on your insurer, your driving record, your ZIP code, and the limits you pick. Ask your agent to quote it at several limits so you can compare.
The Risk Is Large
Compare that with what happens when you don’t carry it. Here’s a realistic Houston example:
You’re stopped at a red light on Westheimer when a driver rear-ends you at speed. You need neck surgery and miss three months of work. Your damages come to $180,000. The at-fault driver has a 30/60/25 policy.
| Scenario | What You Can Recover from Insurance |
|---|---|
| No UM/UIM | $30,000 from the at-fault driver’s policy. The rest depends on whether the driver personally has assets you can collect from, and most don’t. |
| $100,000 UIM | $30,000 from the at-fault driver, plus up to $100,000 from your own UIM. |
| $250,000 UIM | $30,000 from the at-fault driver, plus your remaining damages from UIM, up to $250,000. |
Illustration only. Actual results depend on the facts, the policy language, and the evidence.
Even if you take an under or uninsured driver to court and get a trial verdict, if the driver doesn’t have substantial assets, then there won’t be a way to collect on the judgment. You’ll still be out of luck.
How Much UM/UIM Should You Carry?
A good rule of thumb: match your UM/UIM limits to your liability limits. If you carry 100/300 liability, carry 100/300 UM/UIM. You picked those liability limits to protect other people from you. Your own family deserves at least the same protection.
Here at A. K. Gardner Law, we recommend not carrying just the minimum policy. The minimum limits are often not enough, and you don’t want to be left in a bind after a serious crash. At a minimum, carry at least 50/100 in both liability and UM/UIM. That gives you a little more peace of mind if the worst happens.
If you have significant assets or income, ask your agent whether an umbrella policy can include UM/UIM coverage. Many don’t by default.
What to Know Before You File a UM/UIM Claim with a Houston Car Crash Laweyer
A UM/UIM claim is a claim against your own insurance company, but that doesn’t make it friendly. In a UM/UIM claim, your insurer stands in the at-fault driver’s shoes and can dispute fault, question your treatment, and argue that your injuries are worth less.
A few things catch people off guard:
- Your insurer doesn’t have to pay just because you asked. The Texas Supreme Court held in Brainard v. Trinity Universal Insurance Co. (2006) that a UIM insurer generally has no duty to pay until the at-fault driver’s liability and your damages are established. Sometimes that means filing a lawsuit against your own insurer.
- Deadlines and notice requirements apply. Your policy likely requires prompt notice of the crash and cooperation with the investigation. Don’t wait.
- Recorded statements matter. Your insurer may ask for one, and what you say can be used to reduce your claim. See the top 10 mistakes to avoid after a car crash.
Insurers sometimes deny claims outright even when they clearly should pay. In one recent Harris County case, an insurer denied a hit-and-run victim’s claim entirely. After we filed suit and deposed the at-fault driver, the insurer paid the full $250,000 policy limit. Every case is different, and past results do not guarantee a similar outcome.
An experienced Houston car crash lawyer can identify every available policy, handle the consent-to-settle process, and push back when your own insurer lowballs you.
How to Check Your UM/UIM Coverage Today
It takes about five minutes:
- Find your declarations page. It’s usually in your insurer’s app or online account.
- Look for “Uninsured/Underinsured Motorist.” Note the bodily injury limits (for example, 100/300) and any property damage limit.
- Compare them with your liability limits. If UM/UIM is lower, or missing, call your agent.
- Ask about PIP if you don’t see it.
- Ask for a quote to raise your UM/UIM to match your liability limits. If you rejected it before, make the request in writing.
Talk to a Houston Car Crash Lawyer About Your UM/UIM Claim
UM/UIM coverage is one of the best values in auto insurance. It’s usually inexpensive, and it protects you from one of the most common problems in Houston car crash cases: an at-fault driver who can’t pay.
If you’ve been hurt by an uninsured or underinsured driver, or your own insurer is giving you the runaround on a UM/UIM claim, A. K. Gardner Law, PLLC can help. The consultation is free, and you pay no fee unless we win.
- Call: (832) 598-1339
- Email: contact@akgardner.com
- Book online: Schedule a free consultation or use our contact form
- Office: 5600 NW Central Dr. #100B, Houston, TX 77092
This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every case and policy is different.