Did you know that at any given time almost 20% of drivers on Texas’ roads DO NOT have automobile insurance coverage? Yes, it’s the law to have automobile insurance in order to drive, yet many drivers ignore this law. So what happens if you get into an accident with one of these drivers that have no insurance coverage and who caused the accident? What if there’s an accident where the other driver that caused the collision does have insurance but their insurance policy is not high enough to cover your medical bills? Enter underinsured/uninsured motorist coverage (also known as UIM).
What is UIM?
In Texas there is no requirement for drivers to carry UIM. However, insurance agents and companies are required to offer it to you and you must acknowledge in writing that you are declining UIM coverage. These agents and companies often gloss over the availability of UIM coverage in an attempt to keep your premium down. But for a few several extra dollars per month, opting to get UIM coverage is well worth it, especially when 1 in 5 drivers may not have insurance.
Why is UIM Important?
The purpose of uninsured motorist coverage is to cover your medical bills and property damages in the case where the person that caused the accident (in this case the other driver) does not have any insurance. If you have UIM you file the claim against your own insurance. This also applies for hit and run accidents. Uninsured/underinsured motorist coverage pays for your medical bills and property damage in cases where the at-fault driver does not carry enough automobile liability insurance to pay for those damages and losses. You can purchase this form of insurance coverage to fill the gap between your bills, losses and expenses are following a car accident and the maximum limits of the insurance coverage from the driver that caused the accident. In the instance where the other driver does not have any insurance, uninsured motorist coverage would apply and pay for your own medical expenses and property damage up to the policy limit.
For example, suppose you are in a car accident and you incur $35,000 in medical bills and $10,000 in property damage. If the at-fault driver carries liability insurance with a policy limit of $30,000, the at-fault driver is underinsured. In a situation like this, you would need to make an underinsured motorist claim on your own auto policy for the difference of the damages and the policy. In this case, it would be a UIM claim of $15,000 ($35k in medical + $10k property – $30k 3rd party insurance = $15k). In the event in this example the at-fault driver had no insurance then the claim would be for $45,000. In either case you can see why the extra premium for UIM coverage would well be worth the coverage.
What We See
The Law Office of Nhan Nguyen, MD, JD has handled hundreds of cases for clients. We often come across situations where accidents occur to our clients and the at-fault third party did not have auto insurance coverage. In these cases, to the benefit of our clients, they opted to purchase UIM when they bought their insurance, and because of that, we were able to assist in their recovery for their damages. That’s why carrying UIM coverage is preferred; because with 1 in 5 Texas drivers not carrying automobile insurance coverage there is a possibility you may find yourself in the same situation.
If you have been injured in an automobile accident and need assistance, call the Law Office of Nhan Nguyen, MD, JD today at 713-840-7200. We can assist with your medical AND legal rights.
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