Uninsured Motorist Coverage in Texas: What to Know
Texas doesn’t require drivers to carry uninsured motorist coverage. But the state requires insurers to offer it, so you’ll need to opt out if you don’t want the extra coverage.
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Written byNick Dauk
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6+ years writing about insurance, travel, and personal finances
Contributor to brands like Credible
In addition to insurance, Nick specializes in writing about business, entrepreneurship, personal finance, and travel. He’s been featured in myriad web publications, including Fox Business.
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Edited bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Updated September 13, 2024
Reading time: 4 minutes
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Texas doesn’t require drivers to carry uninsured motorist coverage. Instead, Texas drivers need to have a minimum amount of liability coverage, which pays for any injuries or damages you cause in an accident. Driving without this minimum insurance is illegal.
Unfortunately, nearly 14% of Texas drivers are uninsured, according to data from the Insurance Research Council.[1] But the Texas Department of Motor Vehicles estimates that amount is closer to 20%.[2]
If an uninsured driver hits you, you could be responsible for paying for your own medical expenses and damages, unless you have uninsured motorist coverage. Learn more about how this coverage works and when you might need it.
Good to Know
Texas insurers must offer UM/UIM coverage when you purchase a new car insurance policy. You must provide a refusal of coverage in writing if you don’t want uninsured motorist insurance.
Does Texas require uninsured motorist coverage?
Texas is an at-fault state and doesn’t require uninsured motorist coverage for drivers. The state’s minimum liability coverage requirement is $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage.[3]
Adding uninsured coverage to your insurance policy is still a good idea, even if the state doesn’t require it. Even if you carry additional protections — like collision coverage, personal injury protection (PIP), or medical payments coverage (MedPay) — you might still not be completely covered if an uninsured driver hits you.
If you have MedPay or PIP, these coverages pay for your medical bills.[4] Texas requires insurance companies to offer at least $2,500 of PIP coverage when you buy a policy, but you can decline it in writing.
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What is uninsured motorist coverage?
Uninsured motorist (UM) coverage provides financial protection if you’re involved in an accident with a driver who doesn’t have adequate insurance. It’s typically paired with underinsured motorist (UIM) coverage and known as UM/UIM.
Drivers often purchase uninsured motorist coverage in addition to a full-coverage policy or liability-only policy. Generally, insurers recommend matching your uninsured motorist limits to your liability limits.[5]
Uninsured vs. underinsured motorist coverage
Uninsured coverage applies when the at-fault driver has no coverage. Underinsured coverage applies when an at-fault driver has liability coverage but your damages or injuries exceed their policy limits.
Some states require you to carry uninsured motorist coverage or both uninsured motorist coverage and underinsured motorist coverage. And in states where UM/UIM isn’t mandatory, insurers may still be required by law to offer the coverage.
What does uninsured motorist coverage include?
Uninsured motorist coverage only applies when another driver is at fault and has no insurance. For example, you can use uninsured motorist insurance if you’re in a hit-and-run accident or an accident where the other driver has no insurance. Uninsured motorist insurance includes two types of coverage:
Uninsured motorist bodily injury: UMBI covers medical bills for you and your passengers, pain and suffering costs, and long-term care needs resulting from the accident.
Uninsured motorist property damage: UMPD covers car repairs, the diminished value of your vehicle following the accident, and rental car expenses.
Your UM coverage also usually includes UIM. But each insurer may define UM/UIM differently, which means it may not cover expenses like lost wages from missing work or rental car expenses.
Check with your insurance company or agent to understand your coverage and ask about additional coverage options, including rental car reimbursement, PIP, MedPay, and collision coverage.
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How to file an uninsured motorist coverage claim in Texas
After an accident, make sure you, your passengers, and others involved in the accident are safe and don’t have serious injuries. Then, if you learn the other driver doesn’t have insurance, has fled the scene, or may not have enough coverage, follow these steps to file a claim:
Exchange insurance information. Get the at-fault driver’s insurance information and personal details, including their name, address, phone number, and license plate number. (If they don’t show you their insurance card, the Texas Department of Insurance recommends calling the police.)
Contact the police. Even if no one is seriously hurt, it’s important to have the police come out to file an accident report. Your insurer will likely require a police report at the scene in the event of a hit-and-run.
Document damage. Write down the time, date, and location of the accident and take photos. Note the weather or any other factors, and get the names and contact information of any witnesses.
Contact your insurer. Get in contact with your insurance company or agent as soon as possible to let them know you’ve been in an accident. You can usually call, use the mobile app, or go online to begin the claims process.
Uninsured motorist coverage in Texas FAQs
Texas doesn’t require uninsured motorist insurance coverage, yet Lone Star State drivers still spend nearly $900 million each year for added protection on Texas roads. Here’s some additional information about uninsured motorist coverage that can help you decide if you need this optional coverage.
Who needs uninsured motorist coverage?
State-required liability insurance doesn’t cover damage from uninsured drivers, who amount to at least 12% of Texas’ registered vehicles. UM/UIM coverage is beneficial for any driver who wants extra financial protection.
How much uninsured motorist coverage should you buy?
The Texas Department of Insurance suggests that all drivers purchase enough uninsured motorist coverage to replace their vehicle if it’s totaled in a car accident. But at the minimum, experts recommend matching your uninsured motorist limits to your liability limits.
Which states require uninsured/underinsured motorist coverage?
Only 17 states require drivers to hold uninsured/underinsured motorist coverage: Connecticut, Illinois, Kentucky, Maine, Maryland, Minnesota, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, and West Virginia.[6]
What are the pros and cons of uninsured motorist coverage?
The benefits of uninsured motorist coverage often include financial compensation for medical expenses, car repairs, and rental car costs. But UM coverage typically increases your premiums, and coverage varies by insurer.
When can you use your uninsured motorist coverage?
You can use uninsured motorist coverage in a variety of circumstances, like when police can’t identify a hit-and-run driver who damaged your car or when an at-fault driver doesn’t have any insurance. If the other driver doesn’t have enough insurance, you’ll also need to have underinsured coverage to help cover your costs.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sources
- Insurance Information Institute. "Facts + Statistics: Uninsured motorists."
- Texas Department of Motor Vehicles. "TexasSure - Insurance Verification."
- Texas Department of Insurance. "Auto insurance guide."
- Texas Department of Insurance. "What is uninsured motorist coverage, and do I really need it?."
- Insurance Information Institute. "Protect yourself against uninsured motorists."
- Insurance Information Institute. "Automobile Financial Responsibility Laws By State."
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Nick Dauk
Nick Dauk is a freelance writer specializing in business, entrepreneurship, personal finance, and travel. His work has been featured in Fox Business, BBC, The Edge, Business Insider, and Bisnow. Nick is a first-generation college graduate, having majored in Interdisciplinary Studies at the University of Central Florida. His eclectic coursework, combined with previous managerial roles in the retail and broadcast television industries, have helped him develop an interdisciplinary approach to writing.
For nearly a decade, Nick has created content for mom-and-pop businesses and global corporations. As a travel writer, his global adventures have also been featured on Inside Hook, Houston Chronicle, Culture Trip, and Matador. When he's not traveling, Nick can be found in Orlando spending time with his wife and toddler.
Edited bySarah Archambault
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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