Can You Recover Compensation After a Vehicle Accident With an Uninsured/Underinsured Motorist?

Yes. In Texas, you can often recover compensation after a crash with an uninsured or underinsured driver, but the money usually comes from a different mix of sources than in an ordinary claim. Depending on your policy and the facts, those sources may include your own uninsured/underinsured motorist (UM/UIM) coverage, your personal injury protection (PIP), any liability insurance the other driver does carry, other responsible parties, and a lawsuit against the at-fault driver. The order in which you use them, and the steps you take before accepting any payment, can affect how much you ultimately recover.

The risk is real on Texas roads. The Texas Department of Motor Vehicles estimated that 11.87 percent of Texas drivers were uninsured as of September 2025, and many insured drivers carry only the state minimum. At the Law Firm of Chaile Allen, our car accident lawyers help West Texas drivers sort out which coverage applies after the crash and how to pursue each source. If you are still choosing coverage before anything has happened, our guide on what every Texan should know about uninsured motorist coverage covers that decision.

Texas Uninsured and Underinsured Insurance Coverage

According to the Texas Department of Insurance, Texas drivers must carry a minimum level of liability coverage, often called 30/60/25 coverage: $30,000 for injuries per person, up to $60,000 per accident, and $25,000 for property damage. A serious collision can exceed those limits quickly, which is where UM/UIM coverage matters.

Texas does not require you to buy UM/UIM coverage, but under Texas Insurance Code Section 1952.101, an auto liability policy must include it unless a named insured rejects it in writing. PIP works the same way under Section 1952.152, and the required PIP benefit is at least $2,500 per person unless you bought more. If you are not sure whether you rejected either coverage, request a copy of your declarations page and any signed rejection forms from your insurer.

How Recovery Works After the Crash

The right path depends on whether the other driver had no insurance, too little insurance, or could not be identified.

When the At-Fault Driver Had No Insurance

Your UM coverage can pay what you would have been legally entitled to recover from the uninsured driver, up to your policy limits. UM/UIM property damage coverage, if you have it, is subject to a $250 deductible under Section 1952.105. If you also carry collision coverage, you may be able to use it for vehicle repairs and let your insurer pursue the other driver.

When the At-Fault Driver Had Too Little Insurance

Underinsured motorist claims generally come after the at-fault driver’s liability coverage. Under Section 1952.106, UIM benefits are reduced by the amount recovered or recoverable from the other driver’s insurer. In practical terms, your UIM coverage is designed to pick up where the other driver’s limits stop, up to your own UIM limits.

When the Driver Fled the Scene

Hit-and-run crashes can be covered under UM, but Texas law requires actual physical contact between the unknown driver’s vehicle and you or your vehicle under Section 1952.104. A phantom vehicle that ran you off the road without touching your car usually does not meet that requirement, so photos of the contact damage and a prompt police report are especially important.

3 Options to Recover Compensation After an Accident Involving an Uninsured/Underinsured Driver

If an uninsured or underinsured driver causes you to suffer injuries in a collision, there are three main avenues for recovering damages:

• Insurance claims: PIP can pay medical bills and lost income regardless of fault, and your UM/UIM coverage can pay damages the at-fault driver cannot. Collision coverage may help with repairs, which is often important if you are financing or leasing your vehicle.
• Third-party compensation: Beyond the driver, responsibility may fall on another party, such as an employer whose employee was driving for work, a vehicle owner who lent the car, a manufacturer, or a business, depending on the circumstances.
• Legal action: Your car accident lawyer can file a lawsuit against the uninsured or underinsured driver, seeking the economic and non-economic damages you suffered. Whether this makes sense often depends on whether the driver has assets or income to satisfy a judgment.

To file a lawsuit against a liable driver in Texas, your car accident attorney must establish the driver’s negligence by showing they had a duty to avoid causing harm, breached that duty, and caused your injuries and resulting losses. In most cases, that lawsuit must be filed within two years of the crash. Our post on the Texas statute of limitations for injury cases explains those deadlines.

Why You May Have to Prove the Other Driver’s Fault to Your Own Insurer

A UM/UIM claim is a claim under your own policy, but the coverage pays what you are legally entitled to recover from the other driver. That means your insurer can evaluate the same questions the other driver’s insurer would: who caused the crash, how badly you were hurt, and what your damages are worth. In Brainard v. Trinity Universal Insurance Co. (2006), the Supreme Court of Texas held that a UIM insurer generally has no contractual duty to pay benefits until the other motorist’s liability and underinsured status are established. In Allstate Insurance Co. v. Irwin (2021), the court confirmed that an insured may establish those facts through a declaratory judgment action against the insurer.

Practically, this is why evidence gathered early, including the crash report, photographs, witness information, and complete medical records, matters as much in a UM/UIM claim as it does against another driver. It is also why you should not sign a release with the at-fault driver’s insurer without first checking your own policy’s requirements, since many auto policies require your insurer’s written consent before you settle with the other driver. Our post on how Chaile Allen protects clients in claims with their own insurer covers how to handle those communications.

At the Law Firm of Chaile Allen, we work to prove these elements by investigating the details of your case, gathering evidence, and communicating with insurance companies on your behalf.

Speak With the Car Accident Lawyer at the Law Firm of Chaile Allen Today

If you were injured in an accident caused by an uninsured or underinsured motorist, the Law Firm of Chaile Allen can help you identify every coverage that may apply and pursue them in the right order. Attorney Chaile Allen has more than 15 years of civil litigation experience and a practice rooted in West Texas, and she works directly with clients to build each case and connect them with the local resources they need.

You do not have to sort out these coverage questions alone. Let our car accident attorneys review your policy and your options, and request a free evaluation of your case through our contact form.

Frequently Asked Questions About Uninsured and Underinsured Motorist Claims