What Injury Victims Need to Know About UM/UIM Coverage
Being hit by an uninsured or underinsured driver is one of the most frustrating situations an injury victim can face. You did nothing wrong, you are hurt, your car is damaged, and now you are discovering that the driver who caused the accident has little or no insurance to cover your losses. If this has happened to you, do not panic. Texas law provides important protections for injury victims in exactly this situation, and the attorneys at Corbett & Corbett LLP are here to help you understand your options and fight for the compensation you deserve.
Texas Is an at-fault insurance state
Texas is an at fault insurance state, which means the driver who caused the accident is responsible for paying the damages of the injured party. Most drivers satisfy this obligation by carrying auto liability insurance. Under Texas law, all drivers are required to carry minimum liability coverage of $30,000 per person, $60,000 per accident, and $25,000 for property damage, commonly referred to as 30/60/25 coverage.
Liability insurance pays for the victim’s damages up to the policy limits. It does not pay for the damages of the at-fault driver, which requires separate comprehensive coverage. If your personal assets exceed $60,000, you should strongly consider purchasing coverage above the minimum limits since a serious accident can easily exhaust minimum policy limits and leave you personally responsible for the remainder.
The Uninsured Driver Problem in Texas
Despite the legal requirement to carry insurance, the Texas Department of Motor Vehicles estimates that approximately one in five Texas drivers is uninsured at any given time. That means every time you get behind the wheel in Texas there is roughly a 20 percent chance that another driver on the road with you has no insurance at all. Uninsured drivers cost Texans an estimated one billion dollars annually in uncompensated damages and out-of-pocket expenses.
The situation is made worse by underinsured drivers, those who carry the minimum required coverage but whose policy limits are insufficient to cover the full extent of a serious injury victim’s damages. A single hospitalization from a serious car accident can easily exceed $100,000, far beyond the $30,000 minimum per person liability limit required by Texas law.
What Is Uninsured and Underinsured Motorist Coverage?
Uninsured and underinsured motorist coverage, commonly referred to as UM/UIM coverage, is a type of auto insurance that protects you when you are injured by a driver who has no insurance or whose insurance is insufficient to cover your damages. Unlike liability coverage which protects other people from your negligence, UM/UIM coverage protects you and your family from the negligence of others.
UM/UIM coverage pays for your medical bills, lost wages, pain and suffering, and property damage when an uninsured or underinsured driver causes an accident. Coverage extends to you, your family members, and anyone driving your vehicle with your permission. It also covers you as a pedestrian or cyclist if you are struck by an uninsured driver.
Is UM/UIM Coverage Required in Texas?
Texas law requires insurance companies to offer UM/UIM coverage to every policyholder. However the law allows policyholders to opt out of this coverage in writing. This means your insurance company is required to offer it but you may have declined it when you purchased your policy, possibly without fully understanding what you were giving up.
We strongly recommend that every Texas driver carry UM/UIM coverage given the high rate of uninsured drivers on Texas roads. The additional premium cost is typically modest compared to the protection it provides. If you are not sure whether you have UM/UIM coverage, review your insurance declarations page or call your insurance agent today.
How Does UM/UIM Coverage Work After an Accident?
If you are hit by an uninsured driver your UM coverage steps in to compensate you for your damages up to your policy limits. If you are hit by an underinsured driver, meaning their liability coverage is insufficient to fully compensate you, your UIM coverage pays the difference between what their insurance covers and your actual damages up to your policy limits.
For example, if you suffer $100,000 in medical bills and lost wages from an accident caused by a driver with only $30,000 in liability coverage, your UIM coverage could cover the remaining $70,000 up to your policy limits. Without UIM coverage you would be left trying to collect the remaining $70,000 directly from the at fault driver, which is often impossible if they lack significant personal assets.
What to Do After an Accident with an Uninsured Driver
If you are involved in an accident with an uninsured or underinsured driver take these steps immediately.
Call 911 and report the accident. Get a police report documenting the other driver’s lack of insurance. Document the scene thoroughly with photos and video. Get contact information from all witnesses. Seek medical attention immediately even if you feel fine. Do not discuss fault or your injuries with anyone at the scene beyond what is required for the police report. Contact an experienced Texas personal injury attorney before speaking with any insurance company including your own.
That last point is critical. Even when you are filing a claim with your own insurance company under your UM/UIM coverage, insurance companies are in the business of minimizing payouts. Having an attorney handle your claim from the beginning ensures you receive the full compensation you are entitled to under your policy.
Why You Need an Attorney for UM/UIM Claims
Many injury victims assume that filing a claim with their own insurance company will be straightforward since they are the policyholder and paying customer. Unfortunately that assumption is often wrong. Insurance companies apply the same tactics to UM/UIM claims that they use against third party claimants, recorded statements, low initial offers, requests for extensive documentation, and delays designed to pressure claimants into accepting less than full value.
An experienced Texas personal injury attorney knows how to document your damages comprehensively, negotiate effectively with insurance adjusters, and, if necessary, take your case to arbitration or litigation to force your insurance company to honor its obligations under your policy.
At Corbett & Corbett LLP we have extensive experience handling uninsured and underinsured motorist claims throughout Dallas and Texas. We know the tactics insurance companies use and we know how to counter them effectively. We handle these cases on a contingency fee basis, which means you pay nothing unless we win.
Contact a Dallas Uninsured Motorist Attorney Today
If you have been injured by an uninsured or underinsured driver in Texas, do not try to handle the insurance claim on your own. The decisions you make in the days and weeks following the accident can significantly impact the value of your claim. Contact Corbett & Corbett LLP today for a free consultation. Call us at 469-726-2626 or fill out our online contact form to speak with an experienced Texas personal injury attorney about your case. We are here to fight for you.
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