You were hit by a driver who had insurance. That sounded like good news at the time. Then the hospital bill arrived, then the follow-up imaging, then the physical therapy, and somewhere in that stack you learned the other driver carried only the state minimum. Now the adjuster is telling you the policy is nearly exhausted and there is nothing more to pay.
This happens more often than many drivers expect. Texas sets a minimum level of liability coverage, but a serious injury can cost substantially more than that minimum provides.
What 30/60/25 actually means
Texas requires drivers to carry liability coverage of at least $30,000 per injured person, $60,000 total per accident, and $25,000 for property damage. Those figures come from the state’s financial responsibility requirements under the Texas Transportation Code.
The three numbers do different jobs, and the middle one trips people up most:
- $30,000 per person. The ceiling on what that policy will pay for any one injured individual’s bodily injury claim.
- $60,000 per accident. The ceiling on bodily injury for everyone combined. If four people were hurt, they are generally sharing $60,000, not collecting $30,000 each.
- $25,000 property damage. Covers the vehicle and other property, and it is separate from the injury limits.
It is worth saying plainly that these are minimums, not recommendations. Many drivers carry more. Many carry exactly this and no more.
How quickly $30,000 disappears
An ambulance ride, an emergency room visit, and a CT scan can consume a meaningful share of that limit before anyone has diagnosed anything. Add an orthopedic consult, imaging, and a course of physical therapy and the number gets close. Add surgery and it is gone.
And medical bills are only one category. A serious injury claim may also involve lost wages, reduced earning capacity, and compensation for pain and suffering. Those are real components of a Texas injury claim, but if the at-fault policy is already exhausted by medical bills, there is nothing left behind them.
When damages exceed the policy limits
Three paths generally exist, and none of them is automatic.
Pursue the at-fault driver personally. A personal claim may have limited practical value if the driver does not have collectible income or assets, so the financial circumstances must be evaluated rather than assumed.
Look for another responsible party. Sometimes there is one. If the driver was working at the time, an employer may share responsibility. If the vehicle owner handed the keys to someone they knew was unfit to drive, Texas recognizes a claim called negligent entrustment against that owner. These are fact-specific and not present in every case, but they are worth checking before accepting that a policy limit is the end of the road.
Use your own underinsured motorist coverage. For most people this is the realistic option, and it is the one they know least about.
The coverage most Texas drivers don’t know they have
Texas insurers are generally required to offer uninsured and underinsured motorist coverage, usually written as UM/UIM, and a named insured who does not want it must reject it in writing.
If UM/UIM does not appear on the declarations page, the policyholder may want to ask the insurer for the written rejection. A valid rejection from an earlier policy period may carry forward to a renewal, so the absence of a newly signed form does not automatically establish coverage.
UIM is designed for exactly this situation. When the at-fault driver’s limits are too low to cover your damages, your own UIM coverage can step in to cover the gap, up to your own limits. Pulling your declarations page and looking for a UM/UIM line is a five-minute exercise that occasionally changes the entire picture of a claim.
Why a UIM claim is not as simple as it sounds
Here is the part that surprises people. Even with UIM coverage sitting on your own policy, your insurer generally does not simply write a check once the other driver’s limits run out.
Texas law generally requires the insured to establish the other driver’s liability, the amount of recoverable damages, and the underinsured status before UIM benefits become payable. This may require a declaratory-judgment action involving the insurer, even when the insured has already settled with the at-fault driver.
There is also a consent issue. Many policies require consent before settlement. Settling without consent can create a coverage dispute, particularly if it destroys a valuable subrogation right. Texas courts generally require the insurer to show actual prejudice before denying UIM benefits solely on that basis.
Because policy-limit settlements can affect a later UIM claim, Austin car accident lawyers at Dang Law Group may review the available policies, proposed releases, and order in which the claims should be handled before anything is signed.
Practical steps if you are in this situation
- Find your declarations page and check for UM/UIM coverage and its limits.
- Do not sign a release with the at-fault insurer until you understand what else may be available.
- Keep every bill and record, including items your health insurance paid, since reimbursement rights may apply later.
- Ask whether anyone else may share responsibility before accepting that the policy limit caps your recovery.
- Watch the deadlines. A Texas personal injury lawsuit is generally subject to a two-year limitations period. Deadlines involving a contractual UIM dispute may depend on the policy, the claim history, and when the relevant cause of action accrues.
The larger point
A driver carrying 30/60/25 is complying with Texas law. That compliance says nothing about whether their policy can cover what they did to you.
Outcomes depend on the policies involved, the facts of the crash, and the extent of the injuries. But the gap between the state minimum and the cost of a serious injury is wide enough that it is generally worth understanding your own coverage before you accept that the other driver’s limits are all there is.
