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How does uninsured and underinsured motorist coverage work?

On Behalf of | Mar 6, 2024 | Car Accidents

Drivers on Texas roads are required to have certain insurance coverage. While many comply with the law and maintain required coverage, some don’t.

Uninsured and underinsured motorist coverage (UM/UIM) comes into the picture in these cases. Texas law mandates that insurance companies offer UM/UIM coverage as part of any auto insurance policy, though policyholders have the option to decline it in writing.

Uninsured motorist (UM) coverage

Uninsured motorist coverage in Texas provides protection when an insured driver is involved in an accident with another driver who doesn’t have auto insurance. This coverage steps in to cover medical bills, lost wages and other related expenses for the insured driver and their passengers. It is a safety net that ensures individuals aren’t left financially stranded due to the irresponsibility of others. UM coverage also applies in hit-and-run incidents, even if the driver isn’t found.

Underinsured motorist (UIM) coverage

Underinsured motorist coverage can bridge the gap when a driver doesn’t have sufficient insurance. It covers the difference between what the at-fault driver’s insurance can pay and what is still owed on the claim. This type of coverage is critical in ensuring that victims of auto accidents aren’t left covering substantial costs out-of-pocket due to another’s limited coverage.

Exclusions and considerations

While UM/UIM coverage offers substantial protection, it doesn’t cover property damage in Texas. There’s a separate policy that covers this in Texas. Uninsured motorist property damage (UMPD) coverage for this purpose, providing protection against damage to their vehicle caused by an uninsured or hit-and-run driver.

Victims of crashes caused by a driver who isn’t adequately insured shouldn’t be financially ruined because of a wreck. Seeking legal assistance is beneficial in these cases so the victims can better ensure that they get what they’re due. Seeking compensation in these kinds of crashes can be an uphill battle, but it’s often a successful endeavor one way or another.