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Texas insurance glossary

Underinsured motorist

Underinsured motorist coverage pays the insured when the at-fault driver does carry liability insurance but does not carry enough of it to cover the loss.

Sources checked

It sits in the same subchapter as uninsured motorist coverage and is offered under the same rule in § 1952.101 — on the policy unless a named insured rejected it in writing. In Texas the two are usually sold together as UM/UIM.

It matters exactly where 30/60/25 stops. A driver carrying the state minimum can cause an injury that costs several times the per-person limit, and this is the coverage that answers for the remainder.

How much to buy is a household question rather than a definitional one, and it is on the auto insurance page.

Sources: Tex. Ins. Code § 1952.101 — uninsured and underinsured motorist coverage; TDI — automobile insurance guide (CB020). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Uninsured motorist Uninsured motorist coverage pays the insured for injury and damage caused by a driver who has no liability insurance, or by a hit-and-run driver who is never identified.
  • 30/60/25 30/60/25 is the shorthand for the minimum auto liability limits Texas requires: $30,000 for one injured person, $60,000 for a crash, and $25,000 for property damage.
  • Policy limits Policy limits are the most an insurer will pay under a given coverage, stated per person, per occurrence, or per policy period on the declarations page.
  • Bodily injury liability Bodily injury liability is the part of an auto policy that pays other people for injuries the insured driver causes, up to a limit per person and a larger limit per crash.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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