What is the property deductible for UM UIM coverage in Texas?

Under Texas's status as a "fault" car accident state, drivers are required to demonstrate their financial responsibility for any crash they might cause. Most Texas drivers do this by buying car insurance, and state law requires certain minimum amounts of coverage. We'll discuss those minimums in this article, plus a few other important Texas car insurance rules.

Texas is a "Fault" Car Accident State

Texas uses a "fault" system when it comes to liability for a car accident. In the words of the Texas Department of Insurance, a "fault" system is one that requires drivers to "pay for the accidents they cause."

After an accident occurs, an injured driver, passenger, or pedestrian may decide to file a claim with his or her own auto insurance carrier first, in what's known as a "first-party" claim. The injured person may also decide to seek compensation from the other driver's insurer, by filing what's known as a "third-party" claim. (The "second party" is always the insurance company.) Finally, an injured person may also choose to go to court and file a personal injury lawsuit against the at-fault driver, seeking compensation for medical bills, property damage, pain and suffering, and other losses related to the accident.

(By contrast, "no-fault" states usually require a policyholder's own insurer to pay for their medical bills, lost income, and other out-of-pocket losses—up to certain minimums—regardless of who caused the accident. In no-fault states, an injured person must meet certain threshold requirements in order to step outside the no-fault car insurance system and make a claim against the at-fault driver.)

Minimum Auto Insurance Requirements for Texas Drivers

As touched on above, Texas requires drivers to demonstrate their financial responsibility in case they cause a car accident on the state's roads and highways. Most vehicle owners choose to comply with this requirement by purchasing car insurance. If you're buying car insurance in Texas, the law requires you to have the following minimum amounts of liability car insurance coverage:

• $30,000 for bodily injury liability per person injured in an accident you cause
• $60,000 for total bodily injury liability when two or more people are injured in an accident you cause, and
• $25,000 for property damage per accident you cause.

This basic coverage—known as "30/60/25" coverage for short—pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

You'll need to carry your insurance card or proof of insurance in your vehicle with you, in case you are asked to present it to a law enforcement officer during a traffic stop. Failing to carry insurance or to provide proof of insurance when asked for it can result in fines and other penalties, especially if you're involved in an accident.

Finally, remember that the liability coverage we discussed here doesn't apply to your own injuries or vehicle damage after a car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses.

For example, in Texas, car insurance companies are required to offer personal injury protection (PIP) to policy purchasers. Customers are free to decline this coverage, but it can be used to get your car accident medical bills paid pretty quickly after an accident, before any fault determination is made (since it's no-fault coverage).

Collision coverage can pay for repairs to (or replacement of) your damaged vehicle after a car accident.

Uninsured/Underinsured Motorist Coverage in Texas

Texas does not require drivers to buy uninsured/underinsured motorist coverage, but it does require insurance companies to offer this kind of coverage, which can provide additional protection if you're in an accident with someone who has no car insurance, or whose coverage won't pay for your medical bills and other losses. In Texas, all uninsured/underinsured motorist coverage is subject to a $250 deductible, which you must pay before the insurance company will pick up the remaining bills up to coverage limits.

More Information on Auto Insurance in Texas

The Texas Department of Insurance website offers more information on auto insurance in Texas, including advice on choosing the right coverage.

If you've been involved in a car accident in Texas, it might make sense to discuss your options with a lawyer. You can use the chat tools on this page to connect with a car accident lawyer in your area, or learn more about how a car accident lawyer can help.

Not all states mandate uninsured motorist coverage, also known as UM coverage. However, even if UM coverage isn't required in your state, you take a serious risk if you drive without it. According to the Insurance Information Institute, nearly 13% of drivers countrywide don't have auto insurance. In some states, the number of uninsured drivers is over 20%.

Without uninsured motorist coverage, if you're injured or your vehicle is damaged in an accident with an uninsured or underinsured driver, you could end up paying for medical bills or vehicle repairs out of your own pocket. Even if you file a claim against your own policy, you may have a large collision deductible or not have enough medical payments/personal injury protection to cover injuries caused to you or your passengers.

In which states is uninsured/underinsured motorist coverage required?

While not all states mandate uninsured and underinsured motorist coverage (UM/UIM), around half require at least one of these coverages and some may only require you to purchase coverage for bodily injury. States that don't require uninsured and underinsured motorist coverage may still offer the option to purchase it if it's available.

For example, Illinois requires both uninsured and underinsured motorist coverage. In New Hampshire, car insurance is one of several ways to demonstrate financial responsibility, but if it's purchased, the state requires both uninsured and underinsured motorist coverage to be included on every policy. Other states, like Massachusetts and South Carolina, only require uninsured motorist coverage.

Learn about the car insurance requirements in your state.

What does uninsured motorist insurance cover?

Uninsured/underinsured motorist insurance covers your injuries, your passengers' injuries, and damage to your vehicle if you're hit by a driver who doesn't have enough or has no auto insurance coverage. Depending on your state, uninsured/underinsured motorist insurance may be separate, combined, or consist of up to four coverages:

If you're hit by a driver with no insurance…

• Uninsured motorist bodily injury (UMBI) may pay medical bills for both you and your passengers
• Uninsured motorist property damage (UMPD) may pay for damage to your vehicle

If you're hit by a driver with not enough insurance…

• Underinsured motorist bodily injury (UIMBI) may pay medical bills for both you and your passengers
• Underinsured motorist property damage (UIMPD) may pay for damage to your vehicle

Note that some states may require a deductible for UMPD/UIMPD, but UMBI/UIMBI generally doesn't include a deductible.

Does uninsured motorist insurance cover hit-and-run accidents?

Yes. If a driver hits your vehicle and flees, you can file a claim against your policy's uninsured motorist coverage. However, in some states, uninsured motorist coverage for property damage (UMPD) will not cover hit-and-run incidents. In this case, you would need collision coverage for your insurance to cover the damage to your vehicle from a hit-and-run driver.

Uninsured motorist property damage vs. collision coverage

Uninsured motorist coverage for property damage (UMPD) and collision coverage both pay for damage by a driver with no — or not enough — insurance. However, collision coverage will only pay for damages to your car, regardless of who is at fault, while UMPD – depending on your state – may cover damages to both your car and other property caused by an uninsured or underinsured driver.

Do I really need uninsured motorist bodily injury coverage if I have health insurance?

Your health insurance may overlap with UMBI and UIMBI coverage. In states where UMBI and UIMBI are optional, there are a few things to consider before passing on the coverages:

• Will your health insurance cover injuries sustained in an auto accident? Medicare and Medicaid may not pay out until other sources of insurance have been exhausted. If you have private health insurance, check with your health insurer to find out how medical expenses resulting from a car accident are covered.
• Does your health insurance have a deductible? Generally, there's no deductible with UMBI and UIMBI. If you have a deductible with your health insurance, and it's high, it may be beneficial to carry UMBI and UIMBI.
• Will there be passengers in your car that don't have their own health insurance? Your UMBI and UIMBI coverage will protect those passengers.
• Does your health insurance cover lost wages? Your UMBI and UIMBI sometimes will, as well as other types of damages not protected under some health insurance plans.

How much uninsured motorist coverage do I need?

You usually have the option of choosing the insurance limits of your coverage. For the bodily injury portion that covers your injuries, consider matching the amount of your liability coverage. Some states give you no other option but to choose identical limits.

Your UMPD limit is a different (and much easier) story. You can select a limit that closely mirrors the value of your vehicle. If your car is worth $20,000, and you don't carry collision coverage, then you should consider that much in UMPD coverage.

How to get UM/UIM coverage

New Progressive customers

Quote car insurance online or call 1-866-749-7436 to ensure you have the right coverage to protect against uninsured or underinsured drivers.

Current Progressive customers

Log in to your policy or call 1-866-749-7436 to add coverage or adjust your current coverage limits.