Here's a sobering thought: every time you drive in Texas, there's a good chance you're sharing the road with someone who has no auto insurance. The numbers are stark—about 14% of Texas drivers are uninsured, according to the Insurance Research Council. Some estimates put that figure closer to 20%. That's roughly 1 in 7 drivers who won't have coverage if they cause an accident.
This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes critical. Even though Texas doesn't require you to carry this coverage, it's one of the smartest additions you can make to your auto insurance policy. Think of it as your safety net when someone else drops the ball.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage isn't a standalone policy—it's an add-on to your existing auto insurance. It steps in to pay for your injuries and damages when you're hit by a driver who either has no insurance or whose insurance isn't enough to cover your expenses.
There are two main types of UM/UIM coverage in Texas:
Uninsured Motorist Bodily Injury (UMBI) covers your medical expenses, lost wages, and pain and suffering when an uninsured driver injures you. It also kicks in for hit-and-run accidents where the other driver can't be found.
Uninsured Motorist Property Damage (UMPD) pays to repair or replace your vehicle when an uninsured driver damages it. In Texas, the deductible for this coverage is typically $250, making it relatively affordable.
Underinsured motorist coverage (UIM) is the companion to UM. It protects you when the at-fault driver has insurance, but their policy limits aren't high enough to cover all your damages. Remember, Texas only requires drivers to carry 30/60/25 coverage—that's $30,000 per person for bodily injury, $60,000 per accident, and $25,000 for property damage. If you're seriously injured or your vehicle is totaled, those minimums won't come close to covering everything.
Why Texas Drivers Need UM/UIM Coverage
The reality is that medical bills and car repairs add up fast. A broken bone can easily cost $10,000 or more in emergency room visits, surgeries, and physical therapy. A totaled newer vehicle might represent $30,000 to $50,000 in losses. If the driver who hits you is uninsured or only carries the state minimum, you could be left holding a massive financial burden.
You might think you can sue the at-fault driver personally, and you can—but most uninsured drivers don't have significant assets. Even if you win a judgment, collecting on it is another story entirely. UM/UIM coverage ensures you get compensated regardless of the other driver's financial situation.
Hit-and-run accidents are another major concern. If someone damages your car in a parking lot and drives away, or if you're struck by a driver who flees the scene, your UM coverage treats it like an uninsured driver accident. Without this coverage, you're relying on your collision coverage (which has its own deductible) or paying out of pocket.
How UM/UIM Coverage Works in Practice
When you're in an accident with an uninsured or underinsured driver, here's what happens: First, contact the police immediately and get a police report. This documentation is crucial for your claim. Then, notify your insurance company as soon as possible, even if you're not sure whether you'll need to file a UM/UIM claim.
Your insurance company will investigate the claim, which typically includes sending an adjuster to examine your vehicle, reviewing the police report, and gathering evidence about the other driver's insurance status. You'll need to cooperate fully—provide any information they request, answer questions truthfully, and allow them to inspect damage.
For underinsured motorist claims, the process works a bit differently. The at-fault driver's insurance pays first, up to their policy limits. If your damages exceed those limits, your UIM coverage kicks in to make up the difference. For example, if you have $50,000 in medical bills but the at-fault driver only has $30,000 in coverage, your UIM would cover the remaining $20,000 (assuming you have sufficient UIM limits).
One important note: be careful what you say to your insurance adjuster. While you need to be honest and cooperative, remember that insurance companies are businesses looking to minimize payouts. Stick to the facts, don't speculate about fault, and consider consulting with an attorney if your injuries are serious or the claim is complex.
Choosing Your Coverage Limits
When you buy auto insurance in Texas, your insurer must offer you UM/UIM coverage equal to your liability limits. You can accept it, reject it in writing, or choose lower limits. Most insurance professionals recommend carrying UM/UIM coverage that matches your liability coverage.
Common coverage options include 30/60 (the state minimum), 50/100, 100/300, or 250/500. The first number represents the maximum payout per person injured, and the second is the maximum per accident. Higher limits mean better protection but slightly higher premiums.
Here's a practical way to think about it: Consider your assets, your earning potential, and your family's financial situation. If you have significant savings, own a home, or have a high income, you want enough UM/UIM coverage to protect those assets. A serious accident could wipe out years of financial progress if you're underinsured.
Some policies also offer stacking, which means if you insure multiple vehicles, you can combine the UM/UIM limits across all vehicles. This can significantly increase your available coverage, though not all insurers offer this option in Texas.
Getting Started with UM/UIM Coverage
Adding UM/UIM coverage to your policy is straightforward. If you're shopping for new insurance, your agent will present the option when you're selecting coverage. If you already have a policy, call your insurance company or agent and ask to add it. The cost is typically modest—often just a few dollars per month for substantial coverage.
Review your current policy to see what you have. Many Texans unknowingly declined UM/UIM coverage when they bought their policy, either because they didn't understand its importance or were trying to save money. Given the high rate of uninsured drivers in Texas, this is one area where skimping on coverage can come back to haunt you.
The peace of mind that comes with UM/UIM coverage is worth the small additional premium. You're protecting yourself against a very real risk—being injured or having your car damaged by someone who can't pay for the harm they've caused. In a state where 1 in 7 drivers has no insurance, that protection isn't optional. It's essential.
