When this happens, you may have a couple of options, including filing a claim with your own policy or pursuing an individual lawsuit.
However, if these are not viable options, you may find yourself responsible for the remaining damages out of pocket.
Minimum Policy Limits for Texas Drivers
Every car insurance policy provides coverage up to a certain amount. In Texas, car insurance is required to legally drive a vehicle.
Drivers are required to carry minimum liability coverage of $30,000 for bodily injury per person, up to $60,000 per accident and $25,000 for property damage.
This means the policy should pay out damages up to that amount in a covered incident.
Some Policy Limits May Be Beyond Your Control
Texas is an at-fault accident state when it comes to insurance1. This means that the party that caused the accident is responsible for covering damages.
The benefit of this is that you do not have to file a claim on your own insurance for an accident, but you may also be limited to what you can recover based on the other driver’s insurance choices.
Why Your Accident May Exceed Limits
There are several ways that the value of your claim may exceed the other driver’s insurance limits, especially if multiple vehicles were involved in the accident and need to split the same per accident caps.
When More Than One Person is Injured
The coverage limits for the minimum liability policy are only $60,000 per accident.
If you were injured in an accident with three other people in the car, that only allows $15,000 per person.
Something like a CT scan or broken bone can easily push injured parties over this limit.
When Your Injuries are Catastrophic
If the accident causes you significant injury, you may find that the medical bills quickly exceed the insurance limit, leaving you on your own to cover the costs of that excess. This may include surgical interventions, rehabilitative treatments, or other long-term medical needs.
When Your Vehicle is a Total Loss
Suppose another driver hits you and totals your vehicle. Kelley Blue Book reports that in recent years, new vehicles2 sell for an average of $49,220 and used cars sold3 at an average of $26,918 in May of 2026.
If you have to purchase a new or new-to-you vehicle, state minimum coverage will not provide you with many options. Similarly, if you have a vehicle valued at more than $25,000 you may be looking at more than that in repairs.
What You Can Do to Increase Recovery Even When Your Accident Claim Exceeds Insurance Limits
When the insurance coverage fails to fully cover damages and losses, the driver is considered to be underinsured. However, Texas drivers have the option to secure underinsured motorist coverage4. This is supplemental and not required, but it can provide critical support by covering the difference between your damages and the other driver’s insurance limits.
You may also consider gap coverage if you have a car loan. This helps cover the difference between the value of the car and what you owe if the loan balance is higher than the determined value. This will not help you with purchasing a new vehicle, but it can ease some of the immediate concern of still paying a loan on a vehicle you don’t have.
Additionally, depending on the circumstances of the accident, there may be more than one at-fault party.
You may be able to use Texas’s comparative negligence5 statute to claim damages from multiple parties proportionate to their liability. This can get you closer to fully covering losses, though you typically have the best chance by working with an attorney.
Don’t let an underinsured driver leave you paying out of pocket for medical bills, lost wages, or a totaled vehicle.
Attorney Steve Lee, can help you find every source of compensation available whether through underinsured motorist coverage, third-party claims, or holding additional at-fault parties accountable.
Our attorneys will review your case for free and explain all your options with no pressure and no upfront fees. Call us today or fill out our online form to schedule your free consultation. You only have a limited time to act, so take the first step now.
Sources:
1 https://www.tdi.texas.gov/pubs/consumer/cb020.html
2 https://www.kbb.com/car-advice/is-now-the-time-to-buy-sell-or-trade-in-a-used-car/
3 https://www.kbb.com/car-news/may-brought-higher-prices-slower-sales-to-the-use-car-market/
4 https://www.tdi.texas.gov/tips/uninsured-motorist-coverage.html
5 https://statutes.capitol.texas.gov/?tab=1&code=CP&chapter=CP.33&artSec=33.001