Published February 28, 2024
Driving in Texas can be unpredictable. Even the most responsible drivers face the risk of accidents caused by others. Unfortunately, a significant number of Texas motorists either lack insurance altogether or carry inadequate coverage. This is where uninsured/underinsured motorist coverage (UM/UIM) comes in, offering a crucial layer of financial protection when tragedy strikes.
This article will dive into the pros and cons of UM/UIM insurance in Texas, providing you with the information you need to make an informed decision about your coverage.
Understanding UM/UIM Coverage
- What is UM/UIM? UM/UIM is an optional type of insurance coverage that protects you financially if you’re in an accident caused by a driver who:
- Uninsured: Has no bodily injury liability insurance.
- Underinsured: Has liability insurance, but their policy limits are too low to fully cover your injuries and damages.
Pros of UM/UIM Coverage in Texas
- Protection against uninsured drivers: Sadly, Texas has a high percentage of uninsured drivers. UM coverage ensures you receive compensation for your medical bills, lost wages, and pain and suffering, even if the at-fault driver has no insurance.
- Coverage for hit-and-run accidents: UM coverage can kick in if you’re the victim of a hit-and-run accident, where the responsible driver flees the scene and cannot be identified.
- Supplementing inadequate liability coverage: Even if the other driver has insurance, their policy limits may not fully cover the extent of your losses in a serious accident. UIM coverage makes up the difference.
- Peace of mind: Knowing you have UM/UIM coverage provides peace of mind that you won’t be left with overwhelming financial burdens if disaster strikes.
Cons of UM/UIM Coverage in Texas
- Additional cost: UM/UIM coverage increases your auto insurance premiums. You’ll need to weigh the cost vs. the potential benefits.
- Potential deductibles: Your UM/UIM policy might have a deductible, meaning you’ll have to pay a certain amount out-of-pocket before coverage takes over.
- Negotiation with your insurer: While UM/UIM is your own insurance, you may still need to negotiate with your insurance company to receive a fair settlement.
Practical Considerations
- Stacking coverage: If you have multiple vehicles insured, you may be able to ‘stack’ your UM/UIM coverage limits, providing a higher level of protection.
- Cost vs. benefit analysis: Think about your risk tolerance and the potential financial impact of a serious accident. Consider getting quotes for different UM/UIM coverage limits to weigh the costs and benefits. Calculate your car insurance premiums quickly by using this car insurance cost calculator.
- Finding the right limits: Texas law sets minimum requirements for UM/UIM coverage, but you can choose higher limits. Consult with an insurance agent or a personal injury lawyer to determine the appropriate coverage level for you. Read more at the Texas Department of Insurance.
FAQs
Insurance companies must offer uninsured motorist coverage when you buy auto insurance. If you don’t want it, you have to turn it down in writing.
More information: https://www.tdi.texas.gov/tips/uninsured-motorist-coverage.html
Assuming the other driver didn’t have insurance or enough insurance to cover your injuries and/or damages to your vehicle, or drove away from the scene, you will need to file a claim. Simply call your insurance company to report the accident, get the name and phone number of the adjuster assigned to your claim, and if you went to a doctor, keep all medical records and bills to show your insurance company.
For more information: https://www.tdi.texas.gov/tips/what-to-do-after-a-wreck.html
If the other driver’s insurance company will not pay the full amount or refuses to pay, file a claim with your insurance company. Your insurance will try to recover the money, including your deductible, from the other driver’s insurance and give your deductible back.
For more information: https://www.tdi.texas.gov/tips/what-to-do-after-a-wreck.html
Contact the Car Accident Lawyers at Jim Adler & Associates For Help Today.
UM/UIM coverage is a smart investment for most Texas drivers. While it adds to your insurance costs, the potential benefits far outweigh them when you consider the financial devastation an uninsured or underinsured driver can cause. Review your current auto insurance policy or speak with an insurance expert to ensure you have the protection you need.
Don’t gamble with your financial future. If you’ve been injured in an accident caused by an uninsured or underinsured driver, contact a personal injury lawyer for a free consultation to discuss your options.
