Yes. You can sue your own auto insurance company in Texas when the facts and law support a claim. A lawsuit may seek unpaid policy benefits, establish your right to UM/UIM coverage, or address unlawful claim handling. The right approach depends on your coverage and why the company will not pay.
It can feel personal. You paid for protection, followed the rules, and now face questions about your injuries or the value of your claim. Before deciding what to do, separate two issues: what your policy covers and what you must prove to collect.
When Can You Sue Your Own Auto Insurer?
A lawsuit may be an option when your insurer denies a covered claim, fails to pay benefits it owes, or disputes your right to uninsured or underinsured motorist benefits. Some conduct may also support claims under Texas insurance law.
Start with the coverage involved. Your liability insurance generally pays for harm you cause to others. Coverage for your own losses works differently:
UM/UIM coverage
Uninsured motorist coverage may apply when an at-fault driver has no insurance. Underinsured motorist coverage may apply when that driver has insurance, but not enough to cover your proven losses. UIM is not limited to crashes involving minimum-limit policies.
PIP and medical payments coverage
Personal injury protection, or PIP, covers certain medical expenses and other losses, including some lost income. Medical payments coverage generally covers medical expenses, not lost wages. Each has its own terms and limits.
Collision and comprehensive coverage
Collision coverage generally pays for damage to your car after a crash. Comprehensive coverage addresses losses such as theft, hail, or flooding. Those disputes raise different issues from an injury claim.
The Texas Department of Insurance auto insurance guide explains these coverage types. This article focuses mainly on injury-related disputes.
Why Texas UM/UIM Lawsuits Work Differently
Having UM/UIM coverage does not settle every question. You may still need to prove fault, the link between the crash and your injuries, your damages, and the other driver’s insurance status.
Texas law allows you to sue your UM/UIM insurer directly to establish those matters. You do not always have to sue the other driver first.
In Allstate Insurance Co. v. Irwin, the Texas Supreme Court approved a declaratory judgment action to establish entitlement to UIM benefits. In plain English, this asks a court to decide the facts and your rights under the policy. The court may also award attorney’s fees under that procedure when legally justified.
That is different from proving that the insurer already breached the contract. For disputed UIM benefits, the required judgment generally triggers the contractual duty to pay. An insurer can still resolve the claim voluntarily before trial.
Our Houston uninsured motorist claims page explains the coverage and evidence issues in greater detail.
Does a Denial or Low Offer Mean Bad Faith?
No. A denial or low offer alone does not prove bad faith. The reason for the decision, the investigation, the policy, and the governing law all matter.
For example, an insurer may question whether surgery was caused by the crash. The useful response is to identify the medical evidence behind that position and compare it with your treating doctor’s findings. Calling the offer unfair does not answer the causation dispute.
UM/UIM cases also have special rules about timing. In its 2025 In re State Farm decision, the Texas Supreme Court required benefit-dependent extracontractual claims to be paused while the underlying UIM entitlement issues were resolved. Discovery into those paused claims could not proceed first.
This does not mean an insurer’s conduct never matters. It means the claims and evidence must be handled in the proper order.
A Practical View From Baumgartner Law Firm
The first question should be: What, exactly, is the insurance company disputing?
A coverage denial calls for a close reading of the policy. A dispute over fault calls for crash evidence. A dispute over an injury requires medical evidence. Treating all three as the same problem can waste time and leave the real issue unanswered.
For a serious injury claim, build the evidence around the person’s life as well as the bills. What work can they no longer do? Which daily tasks now require help? What treatment is still ahead? Specific facts give an adjuster or jury something concrete to evaluate.
Baumgartner Law Firm’s Houston car accident lawyer page explains how we approach serious crash cases and the available sources of recovery.
What Should You Do Before Filing Suit?
Get the full policy and the written explanation
Keep your declarations page, policy, and endorsements. Ask the insurer to identify the reason for its denial or limitation of payment and the policy language it relies on. Save letters, emails, claim numbers, and notes of phone calls.
Gather proof of the loss
Collect crash photos, witness information, medical records, bills, treatment plans, and wage records. Keep a simple account of activities your injuries prevent. Be accurate; details are more useful than dramatic language.
Meet policy duties and protect your UIM claim
Report the claim promptly and respond to reasonable requests. Get advice on recorded statements or examinations under oath to understand your duties before responding.
Before settling with the other driver, have a lawyer review the release and your UIM policy. Consent requirements and the insurer’s recovery rights may affect the claim. A check from one carrier may include paperwork that affects another claim.
Get advice on the actual dispute
Bring the written denial or offer to the consultation. Our Houston auto insurance lawyer page explains how legal help may address a disputed injury claim. A lawyer can assess whether more evidence, negotiation, or a lawsuit is the next useful step.
What Can You Recover From Your Insurer?
Recovery depends on the coverage, proof, policy limits, and applicable deductions or credits. UM/UIM bodily injury benefits may address medical expenses, lost earnings, pain, and other covered injury damages. They do not guarantee full payment of every loss.
For illustration only, assume proven injury damages of $150,000, a $30,000 liability payment, and $100,000 in applicable UIM limits. The remaining loss is $120,000, but the UIM limit is $100,000. Actual payment still depends on policy terms, fault, credits, and other facts.
Separate remedies may exist for proven insurer misconduct. Texas Insurance Code Section 541.152 allows actual damages, court costs, and reasonable and necessary attorney’s fees for a successful claim under that subchapter. A knowing violation may support an increase in damages. Those remedies are not automatic additions to every insurance claim.
Deadlines and Notice Requirements
Do not assume one deadline governs every part of the case. The claim against the driver, a claim for policy benefits, and claims involving insurer misconduct may have different deadlines and starting dates. Policy notice requirements also need attention.
For certain Insurance Code lawsuits, Section 541.154’s presuit notice requirement generally calls for written notice no later than the 61st day before filing. Statutory exceptions apply. This is not a universal waiting period for all auto insurance suits.
Have counsel identify the deadlines early. Ongoing settlement talks are not a reason to leave that question unresolved.
Frequently Asked Questions
Do I have to prove bad faith to recover UM/UIM benefits?
No. A claim to establish covered UM/UIM benefits does not require proof of bad faith. The focus is on coverage and the facts needed to show what you are legally entitled to recover.
Will filing a lawsuit mean I have to go to trial?
No. A case can settle after suit is filed. Trial may be necessary if the parties cannot resolve the disputed issues.
Will my insurer have to pay my attorney’s fees?
Sometimes. A fee award requires a legal basis and is subject to the applicable rules. Discuss both the firm’s fee agreement and possible fee recovery before hiring counsel.
Talk With Baumgartner Law Firm About Your Injury Claim
You do not need to diagnose the legal problem before asking for help. Bring your policy, the insurer’s response, and the facts about your injuries.
Baumgartner Law Firm has represented injured Texans since 1985. If your own auto insurer is disputing a serious injury claim, call (281) 587-1111 or request a free consultation to discuss your options.
