Texas Insurance Code § 1952.158 – Insurer Subrogation Rights in UIM Claims
Table of Contents
Statutory Text:
Sec. 1952.158. SUBROGATION.
(a) An insurer that makes a payment to an insured for damages under uninsured or underinsured motorist coverage is subrogated to the rights of the insured against the person causing the injury, death, or damage to the extent of the payment. The insurer may recover that amount directly from the person causing the injury, death, or damage or join in a suit filed by the insured.
(b) The exercise of subrogation rights under this section does not affect the insured’s right to recover damages.
What Does This Law Mean for Injury Victims?
When your UIM insurer pays out a claim, they may step into your shoes and go after the at-fault driver to recover what they paid you. This is called subrogation.
But here’s what’s important: this law does NOT reduce your compensation. The insurer can only recover the exact amount it paid you, and it cannot interfere with your right to pursue full damages.
Subrogation protects the insurance system but ensures you don’t pay twice — or lose your claim because your insurer got involved.
Example Scenario
You’re hit by a driver with $30,000 in coverage. Your injuries are worth $75,000. You collect $30,000 from the at-fault insurer and $45,000 from your UIM policy. Your insurer may now seek to recover that $45,000 from the at-fault driver through subrogation under § 1952.158 but they cannot reduce or interfere with your injury recovery.
When This Law Applies
This law applies when:
You are injured by an uninsured or underinsured driver
Your insurer pays you under your UM/UIM policy
Your insurer then pursues the at-fault party for reimbursement
You or your attorney are negotiating a settlement, and the insurer wants to join the case
It’s also relevant when you are considering settlement offers from the other driver or their insurer. Subrogation rights must be considered before finalizing anything.
Related Statutes
§ 1952.101 – UIM Coverage Requirements
§ 1952.152 – Conditions for UIM Coverage
§ 541.060 – Bad Faith in Claim Handling
§ 542.056 – Claim Decision Deadlines
Texas Civil Practice & Remedies Code § 33.001 – Comparative Responsibility
Texas Case Law Interpreting § 1952.158
Held that UIM insurers may assert subrogation but cannot interfere with the insured’s injury claim or settlement.
Clarified that subrogation must follow the rules of equitable recovery and cannot unfairly burden the injured policyholder.
Emphasized that subrogation rights must be handled carefully to avoid double recovery or prejudicing the insured.
Frequently Asked Questions About § 1952.158
Houston Personal Injury Lawyer - Joel A. Gordon
Yes. That’s called subrogation. They can sue or join your lawsuit to recover what they paid you.
No. Subrogation only applies to what the insurer already paid. You still retain full rights to pursue the rest of your claim.
They may require notice or consent under your policy. If you settle without permission, you may affect their subrogation rights.
Not necessarily. But if they want to recover, they may join voluntarily. A personal injury lawyer can help coordinate this.