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8+ years writing for major outlets, including MarketWatch and Business Insider
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Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.
Updated August 26, 2024
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Texas law requires car insurance, but some drivers still drive uninsured. Texas is an at-fault state that recommends but doesn’t require drivers to carry uninsured/underinsured motorist (UM/UIM) coverage.
When you’re in a car accident with an uninsured driver, your insurance company will typically try to sue the driver or their insurance company for the cost of your repairs and medical bills. Your insurance company handles most of the logistics.
Your insurance coverage has the biggest effect on how the claims process works for you. Depending on your coverage, your insurer might cover none of or all the costs from the accident. If you have UM/UIM coverage, you can file a claim through your insurance company to help pay for repairs.
It’s important to understand your coverage options — especially if you have uninsured motorist coverage — and how it affects accidents with other drivers. Here’s everything you need to know.
Minimum-coverage policies start as low as $16/mo. for safe drivers
Texas mandates a minimum of liability-only coverage, which helps pay for repairs and injuries for the other driver when you cause an accident. The state recommends that drivers carry UM/UIM coverage, but you can opt out of this by notifying your insurer in writing. Texas is also an at-fault state, meaning the driver who caused an accident is responsible for bodily injury and property damage costs.
For example, if you get into an accident with an uninsured driver and file a claim through your UM/UIM coverage, your insurer will pay out your claim. Your insurer also has the right to pursue the uninsured at-fault driver for claims reimbursement.
If you don’t have UM/UIM coverage and only have state-mandated liability insurance, you’ll likely have to pay out of pocket for all repairs and bills. You could sue the uninsured driver, but even if you win your case they may not have the money to pay. It’s often not worth the time and effort to sue an uninsured driver.[1]
In Texas, 13.8% of drivers don’t have insurance coverage, so you’ll likely encounter an uninsured driver at some point. Here’s what to expect if that happens.[2]
If an uninsured driver causes a crash and damages your car, your insurance coverage determines how the situation proceeds. Here are the possible scenarios:
You have uninsured motorist coverage. In most states, uninsured motorist coverage is an optional insurance policy. This insurance covers your vehicle repairs and medical expenses when an uninsured driver causes an accident. You can file a claim with your insurer to start the process.
You have full coverage but not uninsured motorist coverage. Full-coverage car insurance usually includes comprehensive, collision, and liability coverage. Collision coverage will help pay for your vehicle repairs, regardless of who’s at fault. But full coverage doesn’t include medical coverage, so you might have to pay out of pocket if you need medical care.
You only have basic liability insurance. Liability-only coverage doesn’t cover your vehicle repairs or medical expenses. It helps pay for repairs and medical costs for the other driver when you cause an accident. But if an uninsured driver causes the accident, your liability-only policy won’t help.
In Texas, when you’re at fault for an accident and the other driver doesn’t have insurance, you’re responsible for the costs. You can also expect your insurance prices to increase. Here’s how it works based on your insurance coverage:
You have full-coverage car insurance. Full-coverage car insurance pays for your repairs and other driver’s repairs when you cause an accident. It also covers medical expenses for the other driver, regardless of their insurance coverage.
You only have basic liability coverage. Liability-only insurance covers the cost of vehicle repairs and medical expenses for the other driver when you cause an accident. It typically doesn’t matter whether the other driver has coverage in this scenario in Texas because it’s an at-fault state.
You have uninsured motorist coverage. Uninsured motorist coverage doesn’t apply if you cause the accident. The policy only provides coverage if the driver who causes the accident doesn’t have insurance.
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When an uninsured driver causes an accident, your insurance company will likely take legal action against the other driver’s insurance company to recoup some of the costs. Your insurer will handle the logistics and legal process so that it won’t affect your daily life.
How much you pay for repairs and medical care will depend on the type of coverage you have and which driver caused the accident.
Subrogation is when your insurance company tries to get compensation for your claim from the other driver’s insurance company. It’s a legal process that your insurance company handles.[3]
The at-fault driver’s insurance policy must cover your vehicle repairs and medical expenses. But your insurer can’t pursue subrogation if the other driver has no coverage.
Subrogation is a legal process that occurs between two insurance companies. It’s not something that involves the drivers. You can sue the at-fault driver for damages, but it can be a long and expensive process. Sometimes, the at-fault driver can’t afford to pay for the repairs, so even if you’re successful in court, you won’t see any additional money.
Because of the hassle and cost, suing the driver isn’t usually worth it. It typically makes more sense to file a claim with your insurance company.
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Underinsured/uninsured motorist coverage is an optional insurance policy that helps pay for car repairs, medical expenses, a temporary rental car, and diminished-value costs when an uninsured driver causes an accident. The policy covers your costs if the at-fault driver doesn’t have enough coverage. It also includes coverage for pedestrians and hit-and-runs.[4]
The deductible for UM/UIM in Texas is $250, which is more affordable than deductibles for other policies. Texas insurers must offer the coverage. If you don’t want it, you have to decline the policy in writing.
The average cost of uninsured/underinsured motorist coverage is about $110 per year. The low price makes it an accessible option for most drivers. The cost of not having coverage is much higher, so UM/UIM coverage is worth the small cost.
Different types of optional coverage can help pay for repairs, medical expenses, and car replacement after an accident with an uninsured driver. Here’s how to file a claim depending on your coverage.
A collision policy helps cover the cost of your vehicle repairs, regardless of who’s at fault. If you have collision coverage, you can file a claim after an accident.
If damage is due to theft or hitting an object, you can use your comprehensive coverage to file a claim for property damage.
This policy covers the difference between what you owe on your car and what it’s worth. If an uninsured driver totals your car, you can use gap insurance to pay off your car loan.
Medical payments coverage helps pay for healthcare expenses for you and your passengers and is available in at-fault states like Texas.
Getting in an accident with an uninsured driver can be stressful, but preparation makes it easier to navigate. Here are answers to common questions about uninsured motorists.
No. Your insurance won’t go up after you file an uninsured motorist claim. Insurance prices increase if you’re at fault for an accident, but you won’t have an increase if another driver is at fault. Your insurance company won’t drop coverage or cancel your policy, either.[5]
Usually, yes. Insurance companies typically pursue subrogation to regain some costs after an uninsured/underinsured claim. Subrogation is when one insurance company tries to get another insurance company to pay for repairs or medical expenses.
Some car insurance companies offer an insured driver promise, which states that the driver can still use a no-claims discount after filing a claim due to an uninsured driver. Because you’re not at fault for the accident, your insurer won’t hold the claim against you.
Yes, but it may not be worth it. You can sue an uninsured driver, but it’s usually a long and expensive process due to attorney fees. Even if the judge rules in your favor, you might not receive any funds if the uninsured driver doesn’t have money.
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Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.
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