Texas Insurance Code § 1952.101 – Uninsured and Underinsured Motorist Coverage Requirements
Table of Contents
Statutory Text:
Sec. 1952.101. UNINSURED OR UNDERINSURED MOTORIST COVERAGE REQUIRED.
(a) In this section, “underinsured motor vehicle” means a motor vehicle with respect to the ownership, maintenance, or use of which the sum of the limits of liability under all bodily injury liability bonds and policies applicable at the time of the accident is:
(1) less than the total damages for bodily injury, sickness, or disease, including death, resulting from the accident; and
(2) insufficient to satisfy a judgment against the owner or operator of the underinsured motor vehicle.(b) No automobile liability insurance policy delivered or issued for delivery in this state, including a policy issued by a county mutual insurance company, may be delivered or issued for delivery unless the policy provides uninsured and underinsured motorist coverage.
(c) The coverage required under this section must:
(1) provide for payment to the insured, the insured’s family, or a permissive user of the insured vehicle for bodily injury, sickness, disease, or death; and
(2) protect the insured against loss from damages resulting from bodily injury caused by an accident involving the owner or operator of a motor vehicle:(A) for which financial responsibility is not established under Chapter 601, Transportation Code; or
(B) for which the liability limits are insufficient to cover the injured person’s total damages.
What Does This Law Mean for Injury Victims?
This statute requires Texas auto insurers to offer UIM (Underinsured Motorist) and UM (Uninsured Motorist) coverage. These coverages step in when the at-fault driver:
Has no insurance at all (UM)
Has insurance, but not enough to cover your medical bills or damages (UIM)
If you are injured in a crash, UIM/UM coverage can help you recover:
Medical bills
Lost wages
Pain and suffering
Wrongful death damages
Example Scenario
You are T-boned by a driver carrying only the Texas minimum liability limits ($30,000 per person). You suffer a spinal injury and accumulate $100,000 in medical bills. The at-fault driver’s policy pays the $30,000, and you file a claim under your UIM coverage for the remaining losses. If your insurer refuses to honor this, you may have a claim under § 1952.101.
When This Law Applies
This statute is triggered when:
You are hit by a driver with no insurance
The driver’s policy limits are too low to cover your losses
You are involved in a hit-and-run accident
Your own insurer fails to offer UIM/UM coverage or improperly denies a claim
Related Statutes
§ 1952.152 – Conditions for Providing UIM Coverage
§ 1952.158 – UIM Subrogation Rights
§ 1952.159 – Stacking of UIM Benefits
§ 541.060 – Bad Faith Insurance Conduct
§ 542.056 – 15-Day Deadline to Respond
§ 542.058 – Penalties for Delay in Payment
Texas Case Law Interpreting § 1952.101
Held that insurers have no obligation to pay UIM benefits until liability and damages are legally established.
Reinforced that UIM coverage is triggered when other policies are exhausted and losses remain.
Clarified that UIM must be offered on all Texas auto policies unless validly rejected.
Frequently Asked Questions About § 1952.101
Houston Personal Injury Lawyer - Joel A. Gordon
It must be offered by insurers, but you can reject it in writing. Most people have it without knowing.
It covers injury-related losses not paid by the at-fault driver, including medical bills, pain, lost wages, and more.
Yes. Hit-and-run crashes are treated like uninsured motorist claims under Texas law.
You may be able to sue for breach of contract, bad faith, and delayed payment violations under other statutes.