Uninsured/Underinsured Motorist Coverage (UM/UIM)
Definition: Uninsured/underinsured motorist coverage is optional auto insurance that pays your own injury damages when the at-fault driver has no insurance or too little. Texas insurers must offer UM/UIM on every auto policy, and a rejection must be in writing under Insurance Code § 1952.101.
Also called: UM/UIM, UIM coverage, uninsured motorist coverage
What UM/UIM coverage means in Texas
Uninsured/underinsured motorist coverage is first-party insurance you buy on your own auto policy to cover the gap left by other drivers. Uninsured motorist coverage applies when the at-fault driver has no liability insurance or cannot be identified, as in a hit and run. Underinsured motorist coverage applies when the at-fault driver has insurance, but the policy limits are less than your damages.
Insurance Code § 1952.101 requires every Texas auto insurer to offer UM/UIM, and the coverage is part of the policy unless the named insured rejects it in writing. Section 1952.106 defines an underinsured vehicle as one whose liability coverage is less than the amount of damages the insured is legally entitled to recover.
How it works in practice
UIM pays the difference between what the at-fault driver’s insurer paid and your actual damages, up to your UIM limit. If your damages are $150,000, the other driver pays $30,000 limits, and you carry $100,000 in UIM, your insurer owes $100,000. The at-fault payment is credited against your damages, not against your UIM limit.
Collecting is not automatic. Under Brainard v. Trinity Universal Insurance Co., the insurer’s duty to pay UIM benefits does not arise until the insured establishes the other driver’s liability and the amount of damages, typically through a judgment or an agreement. Many carriers now require the insured to file suit or obtain a declaratory judgment before paying, and the insured’s own insurer is entitled to contest both fault and damages.
Why it matters in your case
UM/UIM is frequently the largest source of recovery in a serious Austin crash, because so many at-fault drivers carry minimum limits. It also carries a trap: most policies require the insurer’s written consent before you settle with the at-fault driver, or the UIM claim can be lost. A deeper explanation of the process, including consent-to-settle letters, is in our underinsured motorist claim guide linked below.
Frequently asked questions
Will my rates go up if I make a UM/UIM claim in Texas?
Texas insurance rate rules generally prohibit an insurer from surcharging or canceling a policy because the insured made a claim for an accident that was not the insured's fault. A UM/UIM claim arising from another driver's negligence falls in that category. Check the specific policy language and ask the agent directly.
Why will my own insurance company fight my UIM claim?
Because under Brainard your insurer owes nothing until you prove the other driver was at fault and prove your damages. Your insurer steps into the at-fault driver's shoes and can argue comparative fault, dispute medical causation, and challenge the value of your injuries. The relationship becomes adversarial once the claim is made.
Does UM/UIM cover a hit and run in Texas?
Yes, under the uninsured motorist portion, as long as the policy conditions are met. Most Texas policies require that the unidentified vehicle made actual physical contact with you or your car, and that the incident be reported to police promptly. A phantom vehicle that caused a crash without contact may not be covered.
Cite or link to this definition
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Citation
"Uninsured/Underinsured Motorist Coverage (UM/UIM)." Texas Legal Glossary, SMB Law, PC, law-smb.com/legal-glossary/uninsured-underinsured-motorist-coverage/. Updated October 2026.Link HTML
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This entry explains Texas law in general terms and is not legal advice for any specific situation. Statutes and case law change; the date above reflects the last review.