Do Insurance Companies Go After Uninsured Drivers?

Summary: Through subrogation, insurance companies can pursue compensation from uninsured drivers in the courtroom. However, the process is far from a guarantee and is a lengthy, complicated process. In some cases, carriers may forgo the process altogether. If you are an uninsured driver, you are still at legal risk that may prove criminal depending on the circumstances of your accident. Estimated Read Time: 8 mins

Uninsured drivers who cause accidents can face legal trouble from carriers and even the law. Using subrogation, your carrier may pursue an uninsured motorist if they cause an accident, however, how you’re protected and what your carrier pursues can differ from person to person. Below, we’re breaking down how companies use legal moves to regain compensation and the risks of driving without insurance.

How Do Insurance Companies Go After Uninsured Drivers?

Your insurance company possesses the authority to pursue the uninsured driver through subrogation, a legal process aiming solely to recover the claim funds it disbursed to you after a claim.

This action ensures you receive the necessary compensation to address the damages incurred from a loss in accordance with your policy’s coverage.

In instances where you are not at fault in an accident, the at-fault driver’s insurer, known as a “Third Party Carrier” (TPC), is obligated to assist in covering your repair costs and medical expenses, if applicable.

If reimbursement from the other driver’s insurance is delayed, your insurance often steps in to cover your bills. However, if you don’t have uninsured/underinsured motorist coverage, you’ll likely have to pay for your losses out of pocket.

Subrogation empowers your insurer to recover costs, including your deductible, from the at-fault driver’s insurance, however, while a successful subrogation process results in reimbursement for both you and your carrier, the process is long and uncertain.

There are many cases in which a carrier may not be able to recover funds via subrogation, nor may it feel the need to go through the trouble. Each instance is unique and speaking with your carrier is critical after an accident.

How Much Can I Get From an Uninsured Motorist Claim?

The amount you can receive from your uninsured motorist claim is determined by the coverage outlined in your policy.

Texas law mandates a minimum coverage of $30,000 for injuries per person, up to $60,000 per accident, and $25,000 for property damage. However, this applies to liability coverage. Uninsured motorist coverage is typically added in $5,000 increments.

Therefore, if you have an uninsured motorist claim, you’ll be covered by the same coverage limits outlined in your policy. Once these limits are reached, no further compensation is available, even through subrogation.

This means if you are covered for $100,000 but have medical expenses that reach $125,000, you’ll have to pay the remaining $25,000 on your own. You may be able to sue the other driver for the rest, but as explained below, collecting from an uninsured driver is often difficult.

What Happens if You Don’t Have Car Insurance and Are in an Accident?

If you don’t have car insurance and are in an accident that you’ve caused, your finances are going to become vulnerable to potential lawsuits. Furthermore, depending on the nature of the accident, legal issues involving criminal charges may also apply.

Being an uninsured driver driving an insured car and being excluded from the policy, the carrier won’t cover damage, also leaving you vulnerable to potential lawsuits.

Finally, if you flee the scene as an uninsured driver in Texas, you can not only face lawsuits from affected parties and their carriers but also criminal charges ranging from misdemeanors to second-degree felonies, depending on the nature of the accident.

Not having car insurance is an expensive risk, as several companies are offering affordable coverage that can help you avoid legal issues.

Shopping quotes among different carriers is the key to finding affordable protection. To learn more, contact our team for insurance resources that can help you avoid being an uninsured motorist.

How common are uninsured drivers in Texas?

Uninsured drivers are a real risk on Texas roads. According to the Insurance Information Institute, citing a 2025 Insurance Research Council study, an estimated 14.5% of Texas drivers were uninsured in 2023, compared with 15.4% nationwide, or more than one in seven drivers. That means a serious crash with an uninsured driver is a real possibility for anyone who commutes on I-35, I-10 or the Houston and Dallas-Fort Worth freeways.

How subrogation works, step by step

Subrogation means your insurer steps into your shoes after it pays your claim and tries to recover that money from whoever caused the loss. The Hartford explains that subrogation helps your insurer recoup its losses and can get your deductible reimbursed. When the at-fault driver has no insurance, though, the process usually takes longer, because the insurer has to take legal action against the driver directly. Here is how it typically plays out:

1. You report the crash and file a claim on your own policy. Depending on your coverage, that may be collision, uninsured motorist (UM), personal injury protection or medical payments.
2. Your insurer pays your covered losses, minus any deductible.
3. The insurer investigates fault using the police report, photos, witness statements and the other driver’s information.
4. The insurer sends a demand to the at-fault driver for what it paid, and often your deductible as well.
5. If the driver doesn’t pay, the insurer decides whether to sue. It may negotiate a payment plan, file suit or close the file if recovery looks unlikely.

If any money is recovered, you may get some or all of your deductible back. Our guide to subrogation covers the process in more detail.

Why insurers sometimes don’t pursue uninsured drivers

Insurers make a business decision about each file. Subrogation attorneys at Matthiesen, Wickert & Lehrer describe the familiar problem of the “judgment-proof” uninsured driver: even if the insurer wins in court, the driver may have no money it can actually collect, while litigation brings attorney’s fees, court costs and delay. The same firm notes that one of the most effective collection tools is the threat of having the at-fault driver’s license suspended.

What uninsured drivers face in Texas

Driving without insurance in Texas carries consequences even before anyone sues. The Texas Department of Insurance says a driver who is ticketed for having no insurance can be fined up to $350, and a repeat offense can bring a fine of up to $1,000 and a suspended driver’s license.

After a crash, the stakes rise. Under the Texas Safety Responsibility Act, the state must suspend the driver’s license and vehicle registrations of an uninsured owner or operator involved in a crash when it finds a reasonable probability that a judgment will be rendered against that person, unless the person deposits security and files proof of financial responsibility (Transportation Code §601.152). That part of the law applies to crashes that cause injury or death, or at least $1,000 in damage to one person’s property.

If an insurer or injured person wins a court judgment that goes unpaid, the state must suspend the debtor’s driver’s license and vehicle registrations. The suspension lasts until the judgment is stayed or satisfied and the person provides proof of financial responsibility, subject to exceptions such as an approved installment plan or the creditor’s consent (Transportation Code §601.332). In other words, an uninsured driver who causes a serious crash can lose the ability to drive legally until the debt is resolved.

How long does someone have to sue?

Time limits apply. Matthiesen, Wickert & Lehrer notes that in Texas, the statute of limitations is generally two years for negligence claims such as personal injury and four years for breach of contract. Report the crash promptly and keep your paperwork so your insurer, or your own attorney, can act within those deadlines.

Coverages that protect you from uninsured drivers

Because you can’t count on recovering money from an uninsured driver, the best protection is your own policy. The Texas Department of Insurance explains that uninsured/underinsured motorist coverage can pay for:

• Car repairs and replacing property in your car
• A rental car if you need one
• Medical bills for you and your passengers
• Pain and suffering
• Diminished value if your car is worth less after the accident

TDI notes that the UM property damage deductible is $250, which is usually lower than a collision deductible, and that UM also pays if you’re in a hit-and-run and the other driver can’t be found. Insurers must offer UM coverage, and you have to turn it down in writing if you don’t want it. A common rule of thumb is to carry at least enough UM property damage coverage to replace your vehicle.

Other coverages help too:

• Collision pays to repair your car no matter who caused the crash, minus your deductible.
• Personal injury protection (PIP) pays medical bills and some lost wages for you and your passengers. The TDI auto insurance guide notes that all Texas auto policies include PIP unless you reject it in writing.
• Higher liability limits protect you if you cause a crash. The Texas minimums are explained on our 30/60/25 coverage page.

What to do after a crash with an uninsured driver

1. Call 911 if anyone is hurt, and ask for police to come to the scene.
2. Get the other driver’s name, address, phone number, driver’s license number, plate number and vehicle description.
3. Take photos of the vehicles, the scene, the other driver’s license plate and any injuries.
4. Get contact information from witnesses.
5. Report the claim to your insurer as soon as possible.
6. Keep medical records, repair estimates and receipts.
7. Ask your insurer which coverage applies and how much your deductible will be.

If the other driver leaves the scene, see our guide on whether a hit-and-run claim will raise your insurance.

Common mistakes

• Rejecting UM coverage to save money. It is often one of the most useful coverages in a state with many uninsured drivers.
• Settling privately at the scene. A promise to pay later is hard to enforce if the damage turns out to be worse.
• Waiting to report the claim. Delays make it harder for your insurer to investigate and recover money.
• Assuming liability-only coverage protects your car. Liability pays for damage you cause to others, not your own vehicle.

Frequently asked questions

Will my rates go up if an uninsured driver hits me?

Each insurer has its own rating rules, so ask yours how it treats claims for crashes you didn’t cause.

Can I sue an uninsured driver myself?

Yes, you can bring a claim for losses your policy didn’t cover. Collecting can be difficult, so talk with an attorney about whether it is worth pursuing.

How much UM coverage should I carry?

Enough to cover your medical costs, lost income and the value of your car. You can request a quote to compare UM limits on a new or existing policy.

Sources:

1. Uninsured Motorist Subrogation: Pursuing The Uninsured At-Fault Driver, MWL. Accessed February 2024.
Matthiesen, Wickert & Lehrer: uninsured motorist subrogation

• Facts + Statistics: Uninsured motorists, Insurance Information Institute (Triple-I)
• Subrogation: What Is It and How Does It Apply to Car Insurance?, The Hartford
• What is uninsured motorist coverage, and do I really need it?, Texas Department of Insurance
• FAQ: Auto insurance, claims, coverage issues, and more, Texas Department of Insurance
• Auto insurance guide, Texas Department of Insurance
• Tex. Transp. Code §601.152, Suspension of Driver’s License and Vehicle Registration or Privilege, Texas.Public.Law
• Tex. Transp. Code §601.332, Suspension of Driver’s License and Vehicle Registrations, Texas.Public.Law
• Auto Insurance consumer guide, National Association of Insurance Commissioners (NAIC)