Underinsured Motorist Coverage: Protect Yourself on the Road
Underinsured motorist coverage is a critical part of auto insurance that many drivers overlook until they find themselves in an unfortunate accident. Imagine getting into a collision with another driver, only to discover that their insurance doesn’t fully cover the damage to your vehicle or your medical expenses. Underinsured motorist coverage ensures you’re not left paying out of pocket when the at-fault driver doesn’t have enough insurance to cover the costs.
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What Is Underinsured Motorist Coverage?
Underinsured motorist coverage (UIM coverage) is designed to protect you if you’re involved in a car accident caused by a driver who doesn’t have enough insurance to pay for your damages. While liability insurance is mandatory in many states, the minimum requirements are often insufficient to cover the full extent of medical bills, property damage, or lost wages resulting from a serious accident.
When the at-fault driver’s insurance limits are too low to cover your damages and expenses, your underinsured motorist coverage will step in to pay the remaining costs, up to your policy’s limits.
How Does Underinsured Motorist Coverage Work?
If you’re in an accident caused by an underinsured driver, the process typically goes as follows:
- The at-fault driver’s insurance pays up to its policy limit for your damages.
- Once those limits are exhausted, your underinsured motorist coverage kicks in to cover the remaining costs, up to your policy’s limit.
For example, if your medical bills total $50,000, and the other driver’s insurance only covers $25,000, your UIM coverage would pay the additional $25,000 (assuming your policy covers that amount). This ensures you are not left paying significant out-of-pocket costs after an accident.
Do You Really Need Underinsured Motorist Coverage?
Many drivers believe that they are fully protected since they have collision coverage. However, collision coverage only pays for damage to your car, regardless of fault. It does not cover medical payments, lost wages, or damages that exceed the other driver’s liability coverage.
UIM coverage fills these gaps by paying for medical bills, lost wages, and other costs when the at-fault driver’s insurance isn’t enough. Without underinsured coverage, you could be left covering these expenses on your own, which could be financially devastating, especially in severe accidents.
What Does Underinsured Motorist Coverage Protect Against?
Underinsured motorist coverage protects you in several critical scenarios:
Medical Expenses
UIM coverage helps pay for hospital bills, doctor visits, surgeries, and other medical expenses resulting from the accident.
Lost Wages
If injuries prevent you from working, UIM coverage can help replace your lost income.
Pain and Suffering
In some cases, UIM may cover non-economic damages, such as emotional distress, pain and suffering, and diminished quality of life.
Property Damage
Although UIM typically covers personal injury-related costs, some policies include property damage coverage to help repair or replace your vehicle.
Is Underinsured Motorist Coverage Required by Law?
In Texas, underinsured motorist coverage is not required by law, but insurance companies must offer it to you. If you decide not to include this coverage in your car insurance policy, your insurance agent will have you sign a rejection form acknowledging your decision. While it’s optional, underinsured motorist coverage can be a critical safeguard against drivers who don’t have enough insurance to fully cover the damages they cause.
Similarly, uninsured motorist coverage, which protects you if the at-fault driver has no insurance at all, is also not mandatory in Texas. However, it is highly recommended since it can help cover your medical bills, lost wages, and property damage if the at-fault driver doesn’t have insurance coverage.
What's the Difference Between Uninsured and Underinsured Motorist Coverage?
Many people confuse uninsured motorist coverage with underinsured motorist coverage. The key difference lies in the coverage trigger:
- Uninsured Motorist Coverage (UM): Protects you when the at-fault driver has no automobile insurance at all.
- Underinsured Motorist Coverage (UIM): This protects you when the at-fault driver has some insurance but not enough to cover the total costs of your damages.
Both coverages are important and are typically purchased together as part of a comprehensive auto insurance policy.
How Much Underinsured Motorist Coverage Should I Carry?
When deciding how much underinsured motorist coverage to purchase, consider the potential medical and property damage costs in a serious auto accident. Your UIM coverage limits should be high enough to cover your potential losses if the at-fault driver’s insurance falls short.
Most experts recommend having UIM coverage that mirrors your bodily injury liability limits. For instance, if you carry $100,000 in bodily injury coverage, you should consider carrying the same amount in underinsured motorist coverage to ensure adequate protection.
How Do I File a Claim for Underinsured Motorist Coverage?
Filing a UIM claim follows a similar process to filing any other insurance claim:
- Report the Accident: Notify your insurance company as soon as possible.
- Gather Documentation: Collect all necessary evidence, including police reports, medical bills, and witness statements.
- File a Claim: Submit a formal claim with your insurance company for UIM coverage.
- Negotiate the Settlement: Once your insurance company reviews the claim, they will offer a settlement based on your policy limits and the extent of your damages.
Having an experienced personal injury attorney like those at Allbee Law Firm can help guide you through the process and ensure you receive the full compensation you’re entitled to under your UIM coverage.
Underinsured Motorist Coverage FAQs
Does Underinsured Motorist Coverage Apply to Hit-and-Run Accidents?
While underinsured motorist coverage primarily protects against drivers who don’t have enough insurance, it generally does not apply to hit-and-run accidents. In these cases, uninsured motorist coverage typically applies. If you’re involved in a hit-and-run, uninsured motorist coverage will help cover your medical expenses and other damages, as hit-and-run drivers are often considered uninsured under most auto insurance policies.
Do I Need Both Uninsured and Underinsured Motorist Coverage?
Uninsured and underinsured motorist coverages are typically sold together for the same amount of coverage. While not required, having this combined coverage provides maximum protection in accidents where the at-fault driver either has no insurance or doesn’t carry enough insurance to cover your damages.
Does my UIM coverage apply if I'm a pedestrian?
Yes, UIM coverage often extends to accidents where you are hit by a car as a pedestrian or while riding a bike.
Speak With A Personal Injury Lawyer For Free
If you need clarification on whether your current policy offers enough protection, or if you’ve been in an accident with an underinsured driver, contact Allbee Law Firm today at (972) 848-4848. One of our personal injury attorneys will explain your rights and options to you for free.
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