Texas requires insurers to offer UM/UIM coverage on every auto policy. About 14% of Texas drivers carry no insurance, and many more carry inadequate limits, so UM/UIM is often the only path to full recovery.
Filing the claim
Notice your own insurer in writing as soon as you know the other driver is uninsured or underinsured. Provide police report, scene photos, the other driver's information, and any verification of their coverage status.
Liability is your burden
In a UM/UIM claim, you must prove the other driver was at fault and that your damages exceed their coverage. This is essentially a lawsuit against your own insurer to prove what the other driver would owe if they had coverage.
Settlement against underinsured carrier first
If the at-fault driver has some coverage, settle with their carrier first — but only with your insurer's written consent. Settling without consent can void your UIM rights. Texas insurers cannot unreasonably withhold consent.
Stacking limits
Texas allows stacking of UM/UIM across multiple vehicles on the same policy. Two vehicles each with $100K UMBI may provide $200K combined under some policy forms.
Bad faith
Insurers must investigate and settle UM/UIM claims promptly. Bad-faith conduct under Chapter 541 triggers triple damages plus attorney fees.
Frequently asked questions
How do I file a UM/UIM claim in Texas?
Notify your own insurer in writing as soon as you know the other driver is uninsured or underinsured. Provide all crash documentation.
Do I have to prove the other driver was at fault?
Yes. In UM/UIM, you stand in the at-fault driver's shoes — your insurer is essentially the defendant.
Can I settle with the underinsured driver first?
Yes, but get your insurer's written consent first or you can lose UIM rights.
Can I stack multiple UM/UIM limits?
Often yes, depending on policy form. Confirm with your agent.
What if my own insurer denies the claim?
Same options as any denial: TDI complaint, demand letter, lawsuit. Bad-faith claims allow treble damages.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.