If the driver who hit you carries only Texas’s minimum liability insurance, their insurer will generally pay no more than $30,000 for your injuries, even if your medical bills and lost wages are far higher. The most common way to recover the rest is through your own underinsured motorist (UIM) coverage, along with personal injury protection (PIP) and any other policies that apply. Suing the driver personally is possible, but collecting more than the policy limit is often difficult in Texas.
Key takeaways
- Texas minimum liability coverage is $30,000 per injured person, $60,000 per crash for all injured people, and $25,000 for property damage.
- Your own underinsured motorist (UIM) coverage can pay damages above the at-fault driver’s limits, up to your UIM limit.
- PIP pays medical bills and lost income regardless of who caused the crash, unless you rejected it in writing.
- Look for every other source of coverage: an employer’s commercial policy, a vehicle owner’s policy, or another at-fault driver.
- Most Texas injury lawsuits must be filed within two years of the crash (Tex. Civ. Prac. & Rem. Code § 16.003).
What does “minimum insurance” mean in Texas?
Texas requires drivers to carry liability insurance, often called “30/60/25” coverage. Under Tex. Transp. Code § 601.072, the minimum policy must provide:
- $30,000 for bodily injury to or death of one person in one crash;
- $60,000 for bodily injury to or death of two or more people in one crash; and
- $25,000 for damage to other people’s property in one crash.
Those numbers are small compared with what a serious injury costs. An emergency room visit, imaging, surgery, physical therapy and several months of missed work can easily go past $30,000. And if several people are hurt in the same crash, they all share the $60,000 per-crash limit, so each person may get less than $30,000.
Will the at-fault driver’s insurance pay more than the limit?
Usually, no. A liability insurer’s contract obligation to pay your damages is capped at the policy limit. Once that limit is used up, the insurer generally has no further duty to pay you, no matter how badly you were hurt.
You still have a legal claim against the driver personally for the full amount of your damages. The practical problem is collection. Many drivers who carry minimum coverage do not have significant assets, and Texas law protects many kinds of property from creditors, including a homestead (Tex. Prop. Code ch. 41). A large judgment against someone with nothing to collect may not put money in your pocket. That is why your own coverage often matters more than the other driver’s.
How underinsured motorist (UIM) coverage fills the gap
Underinsured motorist coverage is part of your own auto policy. It protects you when the at-fault driver has insurance, but not enough to cover your damages.
Do I have UIM coverage?
Under Tex. Ins. Code § 1952.101, Texas auto insurers must include uninsured/underinsured motorist coverage in every auto liability policy unless a named insured rejects it in writing. If you never signed a written rejection, you may have UIM coverage even if you do not remember buying it. Check the declarations page of your policy, or ask your agent for a copy of any signed rejection form.
How much will UIM pay?
Texas law defines an underinsured vehicle as one whose liability limits are lower than the UIM limits on your policy (Tex. Ins. Code § 1952.103). Under Tex. Ins. Code § 1952.106, UIM pays the damages you are legally entitled to recover from the at-fault driver, up to your UIM limit, reduced by the amount paid or payable by the at-fault driver’s insurer.
For example, if your damages are $100,000, the other driver has a $30,000 limit, and you carry $100,000 in UIM coverage, the UIM claim would generally be for the remaining $70,000. Your own insurer can still dispute how much your injuries are worth, and it can raise the same fault arguments the other driver could.
Protect your UIM claim before you settle
Many auto policies require you to notify your insurer promptly and to get its consent before settling with the at-fault driver. Settling the liability claim without following your policy’s terms can put your UIM claim at risk. Read your policy, and talk to a lawyer before you sign any release.
PIP and other sources of money
Personal injury protection (PIP)
PIP is also part of your own policy. It covers reasonable medical expenses and lost income (or the cost of household services for people who don’t earn an income) arising from the crash and incurred within three years (Tex. Ins. Code § 1952.151). PIP is paid without regard to who was at fault (Tex. Ins. Code § 1952.155). Texas insurers must include PIP unless a named insured rejects it in writing (Tex. Ins. Code § 1952.152). The law does not require insurers to provide more than $2,500 per person in PIP benefits (Tex. Ins. Code § 1952.153), so check your policy’s limit; many insurers sell higher amounts.
Other insurance that may apply
- A commercial or employer policy. If the at-fault driver was working at the time, such as making deliveries or driving a company truck, the employer and its commercial policy may be responsible. Commercial policies often carry much higher limits.
- The vehicle owner’s policy. If the driver was using someone else’s car, the owner’s insurance may apply first.
- Rideshare coverage. If an Uber or Lyft driver was involved, the company’s insurance may apply depending on what the driver was doing at the time.
- Other at-fault parties. A second driver, a road contractor or a vehicle manufacturer may share responsibility.
- Health insurance. Your health plan may pay medical bills, though it may seek repayment from your settlement.
How limited insurance affects your settlement
When the money available is limited, how the settlement is divided matters as much as the total. A hospital that admitted you within 72 hours of the crash can assert a lien on your injury claim (Tex. Prop. Code § 55.002), and health plans often claim reimbursement. Texas law also limits recovery of medical expenses to the amounts actually paid or incurred (Tex. Civ. Prac. & Rem. Code § 41.0105). Negotiating these liens and bills down can make a real difference in what you take home.
Texas also uses a modified comparative fault rule. If you are found partly responsible, your recovery is reduced by your percentage of fault, and you recover nothing if you are more than 50% responsible (Tex. Civ. Prac. & Rem. Code §§ 33.001, 33.012).
Deadlines to keep in mind
The general deadline to file a personal injury lawsuit in Texas is two years from the date of the crash (Tex. Civ. Prac. & Rem. Code § 16.003(a)). For a wrongful death claim, it is generally two years from the date of death (§ 16.003(b)). Your auto policy may also require prompt notice of a claim, so contact your own insurer soon after the crash, even if you believe the other driver was at fault.
For more on how these claims work, see our car accident page, our page on hit-and-run and uninsured driver crashes, our page on car vs. truck accidents, and our Texas injury law guide.
Talk to a Texas injury lawyer
If the driver who hit you has only minimum coverage, a lawyer can help identify every policy that may apply, protect your UIM claim and deal with liens before you settle. Borunda & Fomby PLLC is based in Houston and represents injured people throughout Texas. Consultations are free, and there is no fee unless we win. Call (713) 930-4878, available 24/7, or contact us online. Se habla español.
This article is general information about Texas law, not legal advice, and reading it does not create an attorney-client relationship. Every case is different.