Texas UM/UIM & PIP Insurance Claims Law: Ins. Code Ch. 1952 & Allstate v. Irwin

Overview of Texas Law & Liability Framework

Because Texas's minimum 30/60/25 liability limits are frequently exhausted by a single emergency room trauma admission, first-party Personal Injury Protection (PIP) and Uninsured/Underinsured Motorist (UM/UIM) claims under Texas Insurance Code Chapter 1952 are central to Texas injury recovery.

Key Texas Statutory Rules & Liability Standards

• Written Rejection Required for PIP and UM/UIM: Under Tex. Ins. Code §§ 1952.101(c) and 1952.152(b), every Texas personal automobile liability policy includes UM/UIM and PIP (minimum $2,500) by operation of law UNLESS the named insured signs a written rejection. If the insurer cannot produce a valid signed rejection, coverage exists as a matter of law.
• Texas PIP Never Has Subrogation or Payback (§ 1952.155): Unlike Medical Payments (MedPay) coverage, Texas statutory PIP pays medical expenses and 80% of lost income within 30 days (§ 1952.157) with ZERO right of subrogation or reimbursement out of the third-party liability settlement, and hospital liens cannot attach to PIP (§ 55.003(b)).
• UIM Litigation via Declaratory Judgment (Allstate v. Irwin): Under Brainard v. Trinity Universal, 216 S.W.3d 809 (Tex. 2006), a UIM insurer has no contractual duty to pay benefits until the insured obtains a judgment establishing the tortfeasor's liability and underinsured status. In Allstate Insurance Co. v. Irwin, 627 S.W.3d 263 (Tex. 2021), the Texas Supreme Court held that an insured may establish those prerequisites directly against the UIM carrier via a Uniform Declaratory Judgments Act (CPRC Ch. 37) suit—and may recover reasonable and necessary attorney's fees under § 37.009!
• Written Consent to Settle With the Tortfeasor: Before accepting the at-fault driver's liability policy limits, a Texas claimant must request written 'consent to settle' from their UIM carrier to avoid triggering a policy-exclusion defense.

Texas Court Procedure, Crash Reporting & Evidentiary Deadlines

Under Tex. Ins. Code § 1952.157, if an insurer fails to pay valid PIP benefits within 30 days after receiving proof of loss, the claimant is entitled to statutory penalties, 18% interest under Prompt Payment of Claims (Tex. Ins. Code Ch. 542), and reasonable attorney's fees.

Compensatory & Exemplary Damages Available Under Texas Law

No-fault PIP medical + 80% wage benefits (tax-free, no subrogation), UM/UIM policy limits up to actual tort damages, plus CPRC § 37.009 discretionary attorney's fees in UIM declaratory judgment actions.