Being in a car accident is bad enough. It only gets worse when the driver who caused it doesn’t have insurance. Uninsured motorist coverage helps you cover the costs when this happens.
This coverage is an insurance add-on that kicks in when an uninsured driver causes your accident. But, is it worth paying for, just in case?
Is UIM Coverage Required in Texas?
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No, uninsured motorist coverage is not a requirement in Texas. However, it can really help you out. When you buy an auto insurance policy in Texas, the company is required to offer uninsured and underinsured motorist coverage.
It’s up to you whether you pay for this add-on. Really, it’s tempting to decline it because why spend the extra money? You can have a lower premium and meet the Texas car insurance requirements.
But what do you do if you’re in an accident with a driver who doesn’t have insurance? The lack of coverage leaves you in a vulnerable position.
What’s the Mandatory Minimum for Car Insurance in Texas?
If your car is registered in Texas, state law requires you to carry a minimum level of liability insurance:
- $30,000 in personal injury liability per person
- $60,000 in personal injury liability per accident
- $25,000 in property damage liability
Some people believe this includes uninsured motorist coverage, but it doesn’t. UM insurance is not mandatory in the state of Texas. However, Texas law also requires insurance companies to offer a minimum of $30,000 in UM/UIM coverage.
If you don’t respond to this offer, the company includes it in your policy automatically. To decline coverage, you have to submit a written rejection of coverage to the company.
How Does UM/UIM Coverage Work?
An uninsured motorist has no liability insurance, and an underinsured motorist has some coverage but not enough. When you are in a car accident where the other driver is at fault, their insurance policy usually pays for car repairs and medical expenses. If the other driver doesn’t have a policy, it can leave you paying out of pocket.
Uninsured motorist coverage bridges the gap between your expenses and the other driver’s lack of insurance. Instead of filing a claim with the other driver’s insurance company, you file it with your own and tell them the other driver is uninsured.
What Does UM/UIM Coverage Pay For?
Your uninsured motorist coverage pays for property damage and injuries you or your passengers sustain in an accident with a driver who has no auto accident policy.
UM/UIM typically includes two policies:
- Uninsured motorist property damage (UMPD) pays for any property damage incurred in the accident. You may still have to pay a deductible, depending on the details of your policy.
- Uninsured motorist bodily injury (UMBI) pays for medical expenses, lost wages, pain and suffering, and funeral expenses. This can also apply if an uninsured driver hits you as a cyclist or pedestrian.
5 Pros of Uninsured Motorist Coverage
There are several benefits to carrying UM/UIM coverage.
1. Protection From Property Damage
Your policy protects you against property damage. This is essential for anyone who drives an expensive car. The $25,000 minimum Texas requires may not be enough to compensate you for your vehicle.
2. Peace of Mind
According to the Texas Department of Motor Vehicles, roughly 20% of all drivers are uninsured. Your UM/UIM policy covers you, family members, passengers, and anyone you give permission to drive your car.
3. Hit and Run Protection
When a driver flees the scene of an accident, it doesn’t matter whether they have auto insurance. Uninsured motorist coverage helps you in a hit and run accident just as it would in a UM collision.
4. Underinsured Driver Protection
There’s a slight difference between UM and UIM coverage.
- Uninsured motorist insurance potects you in an accident with no liability coverage.
- Underinsured motorist coverage protects you when the at-fault driver’s policy doesn’t cover your damages.
Each type of policy protects you in a similar situation. If an at-fault driver only has the minimum level of coverage, it only covers your injuries up to $30,000. UIM coverage supplements this from your own policy.
You can also purchase a policy with a higher limit that covers injuries up to a catastrophic level.
5. Full Personal Injury Damages
UM/UIM coverage offers the same sort of compensation you would receive from a personal injury claim. This is still subject to policy limits.
Compensation can cover:
- Lost wages
- Diminished earning capacity
- Current and future medical bills
- Out of pocket costs
- Emotional distress
- Pain and suffering
- Loss of enjoyment in life
Additionally, your claim can include other tangible or intangible costs you incur from the accident.
The Cons of UM/UIM Coverage
Everything has a downside, so it’s up to you to weigh the potential benefits against these:
- Coverage costs extra, but many drivers pay under $100 each year for it.
- Property damage claims have a $250 deductible in Texas.
- Hit and run accidents have an “actual contact” rule. It doesn’t cover accidents where you swerve to avoid a driver and hit something.
For many drivers, the pros outweigh the cons. The peace of mind alone is a great benefit.
Our Personal Injury Lawyers Can Help
A personal injury lawyer can help you understand your options after a car accident. The team at AP Law Group works helps people injured in car accidents get the compensation the insurance company owes them. Whether you need help with another driver’s policy or your own, our team can help you.
