Insurance Topic

Uninsured & Underinsured Motorist Coverage (UM/UIM) in Texas

Uninsured and underinsured motorist coverage is an auto insurance coverage that responds when a legally responsible driver has no liability insurance or carries liability limits insufficient to cover damages, as defined by Texas insurance statutes.

Definition

Uninsured and underinsured motorist coverage (UM/UIM) is a form of automobile insurance that provides protection to an insured party when bodily injury or property damage results from an accident caused by a driver who either has no applicable liability insurance or whose liability limits are inadequate under Texas law.

Structural Components

  • Uninsured motorist bodily injury (UMBI)
  • Uninsured motorist property damage (UMPD), where applicable
  • Underinsured motorist bodily injury (UIMBI)
  • Trigger based on absence or insufficiency of at-fault liability coverage
  • Policy limits defined within the insured’s auto policy

Parameters & Conditions

  • Applies only when the at-fault party is legally responsible for the loss
  • Coverage activation depends on verification of uninsured or underinsured status
  • Limits are subject to the insured’s elected UM/UIM policy limits
  • Texas law requires written rejection if coverage is declined

Topic Relationships

Exceptions, Limitations & Boundaries

  • Does not apply when the at-fault driver carries sufficient liability insurance
  • Coverage is limited to the policy limits selected by the insured
  • Certain exclusions may apply based on policy language and loss circumstances

Uninsured & Underinsured Motorist Coverage in Texas: Definitional FAQ

Is uninsured motorist coverage required in Texas?
Uninsured motorist coverage is not mandatory in Texas, but insurers must offer it and obtain a written rejection if it is declined.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault driver has no liability insurance, while underinsured motorist coverage applies when the at-fault driver’s liability limits are insufficient.
Does UM/UIM cover property damage in Texas?
Texas policies may include uninsured motorist property damage coverage, subject to statutory conditions and policy terms.
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