Why Everyone Needs Uninsured and Underinsured Motorist Coverage
In Texas, if you are injured in a car accident, the law generally requires you to pursue compensation first from the at-fault driver’s insurance. However, most drivers either do not carry insurance at all or maintain only the state minimum coverage—typically $30,000. For serious accidents, this amount is often far below what is needed to cover medical bills, lost wages, and other damages. Without proper coverage, you could be left paying out-of-pocket for expenses that exceed the at-fault driver’s policy limits. This is why uninsured and underinsured motorist coverage (UM/UIM) is essential for all drivers.
Understanding UM and UIM Coverage
Uninsured Motorist (UM) Coverage: This protects you if you are hit by a driver who has no insurance. Without this coverage, you may be personally responsible for all medical bills, lost wages, and other damages resulting from the accident. UM coverage ensures that your insurance steps in when the at-fault party cannot pay.
Underinsured Motorist (UIM) Coverage: This applies when the at-fault driver has insurance, but their policy limits are too low to cover your full damages. For example, if your medical bills total $100,000 but the at-fault driver only has $30,000 in coverage, UIM coverage can pay the difference, up to your policy limits.
Why Texas Drivers Are at Risk
Texas is unique because, despite mandatory insurance laws, a large number of drivers remain uninsured or underinsured. Many drivers choose the minimum coverage to save money, leaving victims financially exposed in the event of a serious accident. Even if the at-fault driver has some assets, recovering damages from them personally can be difficult or impossible. UM and UIM coverage acts as a safety net, ensuring that you are protected regardless of the other driver’s insurance status or financial situation.
Real-Life Examples of UM/UIM Coverage in Action
No Uninsured Motorist Coverage: You are hit by an uninsured driver, and your medical bills total $50,000. Without UM coverage, you are likely responsible for paying these bills yourself. While you could try to sue the at-fault driver, Texas law protects certain personal assets from being seized—like their homestead, retirement accounts, and some personal property—so even winning a lawsuit may not get you the full amount you are owed. Most drivers simply do not have enough unprotected assets to cover serious injuries, leaving victims at significant financial risk.
With Uninsured Motorist Coverage: Suppose you have a $500,000 UM policy and are hit by an uninsured driver, resulting in $50,000 in medical bills. Your attorney can file a claim under your UM coverage, ensuring your medical bills are paid in full and that you receive compensation for pain and suffering—up to your policy limit of $500,000. UM coverage removes the financial burden and gives you the leverage to recover the full value of your injuries
Underinsured Motorist Without Coverage: You are seriously injured, and your medical bills total $100,000. The at-fault driver has only $30,000 in coverage, and you do not have UIM coverage. You are responsible for paying the remaining $70,000 out of pocket. While you could try to collect from the at-fault driver’s personal assets, Texas law protects many assets—like their homestead, retirement accounts, and certain personal property—so even winning a lawsuit may not cover the full amount. This situation highlights the significant financial risk of not having UIM coverage.
Underinsured Motorist With Coverage: You have $500,000 in UIM coverage, and the at-fault driver only has $100,000 in insurance. Your attorney can file a claim under your UIM policy to cover the remaining damages, ensuring all medical bills are paid and that you also receive compensation for pain, suffering, and lost wages—up to your $500,000 policy limit. Just like with uninsured motorist (UM) coverage, having UIM coverage protects you when the other driver’s insurance is insufficient and gives you the leverage to recover the full value of your injuries.
