Is Uninsured/Underinsured Motorist Insurance (UM/UIM) Required in Texas? 

Reg Reinoso

Author

No one expects to be in a car accident, but the reality is that it can happen to even the most alert drivers. What’s even more concerning is the risk of being involved in a crash with a driver who doesn’t have insurance or doesn’t have enough coverage. 

In Texas, more than 2.6 million state-registered vehicles are not matched to an insurance policy, which accounts for 20% of the state’s registered vehicles, according to the Texas Department of Motor Vehicles. This means a significant number of drivers on Texas roads are uninsured or underinsured, leaving innocent drivers and passengers vulnerable to extreme financial loss in the event of an accident.

To protect yourself and your family, you want to make sure your auto insurance policy includes Uninsured/Underinsured Motorist (UM/UIM) insurance. UM/UIM insurance can be the financial safety net you need if you’re hit by someone who lacks sufficient coverage. 

UM/UIM Insurance: What the Texas Law Actually Says

Under Texas law, insurance companies are required to offer Uninsured/Underinsured Motorist (UM/UIM) coverage in every auto insurance policy they issue, unless the policyholder explicitly rejects it. Section 1952.101(b) of the Texas Insurance Code mandates that UM/UIM coverage must be included in the policy or as a supplement to it. This means that, by default, if you purchase auto insurance in Texas, you will be offered coverage for accidents involving uninsured or underinsured drivers when you sign up.

However, Section 1952.101(c) provides a critical loophole: a policyholder can choose to reject this coverage in writing. In practice, this means that if you don’t want UM/UIM insurance, you can decline it by signing a form or checking a box during the insurance application process. While the law requires insurers to offer the coverage, it does not obligate drivers to accept it.

In the real world, many people go through the insurance-buying process online or through an app, often with little thought beyond reducing their premium costs. It’s common for drivers to simply check boxes that lower the overall cost of their policy without fully understanding the long-term financial risks of not having UM/UIM coverage. While this might seem like a good way to save money in the short term, it can leave drivers exposed to significant expenses in the event of an accident with an uninsured or underinsured driver.

The Cost vs. Benefit of UM/UIM Insurance

While opting in for UM/UIM insurance may slightly increase your premium, the added cost is relatively minor compared to the financial fallout of being in an accident with an uninsured or underinsured driver. Even a modest UM/UIM policy can make a significant difference in covering medical bills, lost wages, and other damages. Without it, you could be left paying out of pocket for expenses that far exceed what the at-fault driver’s insurance can cover, especially if they have no insurance at all.

As car accident lawyers, we often see cases where injured individuals are unable to collect the compensation they deserve due to uninsured drivers. Ensuring your policy includes UM/UIM coverage can help mitigate these financial losses at a time when you may need it most.

This information is for informational purposes only and is not a substitute for legal advice.