There are many types of auto insurance that can be added to an insurance policy, including uninsured motorist (UM) and underinsured motorist (UIM) coverages. If you are involved in a vehicle crash with an uninsured or underinsured at-fault driver, these policies are intended to bridge the gaps and help cover your medical expenses and vehicle repair costs. If you or a loved one were injured in a car accident by the negligence of an uninsured or underinsured driver, the experienced Texas auto accident attorneys at Liggett Law Group can help. We can investigate the existing coverage, negotiate with insurance companies on your behalf, and fight for the compensation you need to recover fully. Below we explain what is uninsured motorist coverage.
Defining Uninsured and Underinsured Motorist Coverage
In most cases, Texas drivers take responsibility and purchase at least auto liability insurance, but there are many drivers who neglect to insure their vehicles. In some cases, they do not have enough insurance coverage for a serious auto accident. In these cases, obtaining uninsured and underinsured motorist insurance will help cover the expenses accrued because of the crash.
Recently, the Insurance Research Council conducted a study on uninsured and underinsured motorists and found that one in eight American drivers are not insured. A study conducted in 2023 by the Insurance Information Institute (III), found that 14% of drivers were uninsured in 2022.
In Texas, the statistics are a bit better, with one in 12 drivers (8%) of drivers failing to have auto insurance before hitting the roadways.
Adding Uninsured or Underinsured Coverage to Auto Insurance
Adding Uninsured or Underinsured Coverage to Auto InsuranceWhen a driver adds uninsured and underinsured motorist protection to their existing auto insurance, it can help provide coverage for any injuries sustained in the crash and any damage that may have occurred to the vehicle. According to the Texas Department of Insurance (TDI), it breaks down like this:
- Uninsured Motorist Coverage (UM): When an at-fault driver has no auto insurance, this coverage protects you and your property after the accident.
- Underinsured Motorist Coverage (UIM): When an at-fault driver has insurance but not enough coverage to pay for all the damages, this type of coverage protects you and your property after an accident.
In the case of a hit-and-run, uninsured motorist coverage can help cover the damages when the at-fault driver cannot be found. When the at-fault driver’s liability limits do not provide enough coverage to pay for all the damages, underinsured motorist coverage will help cover the additional costs of the accident.
The deductible for uninsured/underinsured coverage is typically $250, and deductibles on collision insurance are usually much higher. If you do not have these types of policies, you can be burdened with the uncovered medical expenses or vehicle damages caused by a negligent driver whose insurance can’t pay for all the expenses they caused by negligently contributing to an accident.
Types of Uninsured and Underinsured Motorist Coverage
Much like general liability automotive insurance policies, your uninsured and underinsured coverage will include liability. There is bodily injury liability, which pays for medical expenses for you as the driver and any passengers with you. There is also property damage liability to cover any gaps for repairs to your vehicle and other personal property.
Remember that you can also purchase comprehensive coverage and collision policies, which give you even more protection against unexpected bills after a crash. Your standard liability insurance only pays for injuries and damage you cause to others, not your own bills. That’s where these other policies can prevent a financial crisis. These types of auto coverages can be looked at as a proactive plan to protect you against the unexpected. These additions to a policy can give drivers peace of mind. This is especially true if you are left paying medical bills and property damage that someone else caused.
Texas’ Mandatory Auto Insurance
Any driver who has a vehicle registered in Texas is required by law to at least carry a minimum auto liability insurance coverage. The mandatory minimum coverage includes:
- $30,000 in bodily injury liability coverage (per person)
- $60,000 in bodily injury liability coverage (per accident)
- $25,000 in property damage liability insurance
Uninsured and underinsured motorist coverage is optional, but Texas law requires insurance providers to offer their clients at least $30,000 in UM/UIM insurance. If a client declines the additional coverage, they must submit a written rejection of coverage to the insurance company. This ensures that the client is aware of the coverage.
Frequently Asked Questions About Uninsured Motorist Coverage
Q: Is my regular auto policy enough?
A: If your auto insurance includes collision coverage, it may pay for repairs to your vehicle if you are in an accident caused by an uninsured or underinsured driver. Your insurance may also pay medical expenses. If your policy has personal injury protection coverage, it may help with medical bills as well.
However, these may not be enough to repair or replace an expensive vehicle or if long-term medical care is needed. Your healthcare plan may cover your injuries, but you may need uninsured or underinsured motorist coverage if long-term care is needed or if you are out of work for extended periods.
Q: What Does UM Pay For?
A: Uninsured/underinsured coverage usually pays for:
- Car repairs
- Replacing property in your car
- Rental cars if needed
- Driver and the passengers’ medical bills
- Pain and suffering expenses
- The diminished value of the vehicle if it loses value after the accident
Q: Who needs uninsured motorist coverage?
A: Anyone driving could need it if they are involved in an accident with an uninsured at-fault driver. It can also be looked at as insurance in case you are involved in a hit-and-run accident, and the other driver is unknown or cannot be found. It also helps provide an additional cushion of coverage if the other driver doesn’t have enough insurance to cover the medical costs for catastrophic injuries or long-term care (underinsured motorist coverage).
Q: How much coverage should a person add to their existing insurance policy?
A: Uninsured and underinsured coverage usually comes in increments of $5,000. An agent can help you figure out how much to get, but it may be smart to add enough property damage coverage to replace your vehicle.
There are many benefits of carrying uninsured motorist insurance on your vehicle, and it has become one of the most popular options to add to existing insurance policies. Underinsured motorist coverage has become almost as popular.
The Pros and Cons of UM/UIM Insurance
When weighing the pros and cons of uninsured and underinsured coverage, it seems like an easy decision to add to your policy.
Con: UM/UIM insurance costs extra money.
Pro: Most drivers pay less than $100 per year to add both types of coverage to their policy.
Con: UM/UIM property damage insurance usually has a $250 deductible.
Pro: The deductible on collision insurance is generally higher.
The one major con is in the case of a hit and run. UM coverage has an actual contact clause which means the at-fault driver would have to actually hit your car. If you are trying to avoid the actions of the at-fault driver and swerve into a tree instead of the negligent AWOL driver, your UM insurance cannot be applied to compensate you. This is when a collision or comprehensive policy (both voluntary purchases) could go into effect.
Other Benefits of Underinsured Coverage
When an at-fault driver only has a minimum liability insurance policy, they will only pay up to $30,000 to cover medical expenses for your injuries. It does not take long for medical costs to exceed that minimum. Underinsured coverage can help supplement the limited insurance in cases like this.
Both uninsured and underinsured coverage may offer you a sense of security because they provide compensation for a variety of damages suffered because of a vehicle accident. These damages may include:
- Past, present, and future medical expenses like long-term care
- Property damage or loss
- Lost earnings
- Diminished earning capacity
- Out-of-pocket expenses
- Travel costs for medical treatment
- Medications
Of course, if you do not have these types of insurance coverage, you may seek compensation by filing a personal injury lawsuit.
A skilled car accident lawyer in Texas can inform you what type of compensation you can seek for any tangible or intangible loss that may have arisen directly because of the accident.
Contact an Auto Accident Attorney Today
For a motorist to legally operate a vehicle in Texas, they should meet the monetary responsibility requirements listed under the state’s Transportation Code. These laws are in place to ensure at-fault motorists can pay for any property or bodily injury damages that may result from an auto accident.
If you are involved in a vehicle collision with an uninsured or underinsured driver who is at fault, it is wise to reach out to the skilled Texas auto accident attorneys at Liggett Law Group. We are committed to securing the maximum compensation possible for our clients and will seek every possible avenue to recover the compensation you need to cover your expenses and get back to your life. Call or use our online form to request a free case review today.