Uninsured and Underinsured Claims in Texas: Legal Lifesaver
Have you ever worried about getting into an accident with a driver who doesn’t have insurance? Or maybe someone who doesn’t have enough coverage? In Texas, there’s a safety net for that: Uninsured and Underinsured Motorist (UM/UIM) coverage, which forms the basis for uninsured and underinsured claims in Texas.
What is UM/UIM Coverage?
UM/UIM coverage protects you if you’re in an accident with a driver who either has no insurance or not enough to cover your damages. It’s like having a backup plan for your car insurance.
Why It Matters
Imagine you’re in a car accident. The other driver is at fault, but they only have the minimum insurance required by law. Your medical bills and car repairs cost more than their insurance will pay. That’s where your UM/UIM coverage steps in to help.
Texas Law and UM/UIM Coverage
Texas law requires insurance companies to offer at least $30,000 in UM/UIM coverage with every auto policy. You can choose to buy more or reject it entirely, but you must do so in writing.
What Are Common Scenarios Where Underinsured/Uninsured Motorist Coverage Would Be Beneficial?
Understanding the importance of underinsured or uninsured motorist coverage often comes down to real-world situations. Here are some common scenarios where this type of coverage can be invaluable:
When the At-Fault Driver Has No Insurance
Imagine you’re rear-ended by another driver who lacks any form of insurance. If you have uninsured motorist coverage, you can file a claim through your own insurance to receive compensation for damages. Without this coverage, you might be left paying for repairs and medical bills out of pocket.
Insufficient Liability Coverage
Consider a scenario where the at-fault driver has minimal liability insurance, which isn’t enough to cover your extensive medical expenses. For instance, if you incur $300,000 in hospital bills but the other driver’s insurance only covers $30,000, underinsured motorist coverage can help fill that gap. This ensures you aren’t financially crippled by another driver’s lack of adequate insurance.
Hit-and-Run Incidents
Another critical situation is a hit-and-run accident. If the driver who hit you flees the scene, collecting their insurance information becomes impossible. In this case, uninsured motorist coverage allows you to claim compensatory damages, such as medical bills and lost wages, from your own insurance.
Other Overlooked Scenarios
• Pedestrian Accidents: If you’re hit by an uninsured driver while walking, your coverage can assist with medical bills.
• Bicycle Accidents: Similar to pedestrian incidents, if you’re hit while cycling, underinsured or uninsured coverage can also be beneficial.
Having underinsured or uninsured motorist coverage provides a safety net in various unfortunate circumstances, ensuring that you are protected even when the other driver cannot cover the costs.
This type of coverage can bring peace of mind, knowing that you won’t be left financially vulnerable because of someone else’s lack of responsible insurance.
How It Works
Here’s an example to illustrate how UM/UIM coverage works in uninsured and underinsured claims in Texas:
Let’s say you’re in an accident and have $40,000 in medical bills. The at-fault driver only has $30,000 in coverage. If you have $50,000 in UIM coverage, it can pay the remaining $10,000 for your medical bills, plus potentially cover lost wages and pain and suffering, up to your policy limit.
A 2018 underinsured trial verdict in Travis County highlights the importance of this coverage.
Many motor vehicle accidents involve uninsured and underinsured motorists, and some UM/UIM cases are brought to court each year. Several issues involving UM/UIM insurance litigation remain unresolved in the Texas court system.
The Texas Uninsured/Underinsured Motorist Statute, under the Texas Insurance Code, governs UM/UIM coverage. Article 506-1 of the statute was originally enacted in 1967 to protect the insured against uninsured motorists. The statute was subsequently amended in 1977 to include protection for insureds against underinsured motorists. Article 506-1 protects conscientious individuals from financial loss caused by negligent and financially irresponsible drivers.
Steps to Use Your UM/UIM Coverage
If you find yourself needing to use your UM/UIM coverage, here’s what to do:
1. Report the accident to the police.
2. Seek medical attention and keep records.
3. Contact your insurance company quickly.
4. Document everything about the accident.
5. Understand your policy details.
6. File a detailed claim with evidence.
7. Follow up regularly with your insurance.
8. Consider legal help if needed.
9. Be prepared to negotiate for fair compensation.
10. Review any offer carefully before accepting.
Stay organized and persistent throughout this process.
Why You Might Need It For Your Uninsured and Underinsured Claims in Texas
Medical costs and car repair prices keep going up. Having UM/UIM coverage can protect you from major out-of-pocket expenses if you’re in an accident with an underinsured driver.
Legal Expertise Matters
Uninsured and underinsured claims in Texas can be complex. Having a lawyer can make a big difference:
- Knowledge: Lawyers understand UM/UIM laws deeply. They can help you get the most compensation possible.
- Negotiation Skills: They can deal with insurance companies effectively, fighting for a fair settlement.
- Support: Lawyers handle paperwork, develop case strategies, and represent you in court if needed.
- Cost-Effective: Many work on a contingency basis, meaning you only pay if you win.
- Peace of Mind: Legal help lets you focus on recovery while experts handle your case.
With legal representation, you’re more likely to get a favorable outcome in your UM/UIM claim.
Legal Aspects
While UM/UIM coverage is straightforward in theory, legal issues can arise. Sometimes, insurance companies dispute claims or offer less than you deserve. That’s when having a knowledgeable attorney can make a difference.
Benefits of a Free Legal Consultation After a Motor Vehicle Accident
A free legal consultation can be invaluable after a motor vehicle accident. Here’s why:
• Understand Your Rights: Learn about your options, including UM/UIM claims.
• Get Tailored Advice: Receive personalized guidance for your specific case.
• No Financial Risk: Explore legal options without upfront costs.
• Immediate Help: Access 24/7 assistance for urgent concerns.
• Expert Resources: Tap into a network of specialists to strengthen your case.
Key Takeaway: A free consultation helps you understand your rights, get personalized advice, and access expert resources without financial risk. It’s a crucial first step towards securing fair compensation.
Getting Help
If you’ve been in an accident and need to file a UM/UIM claim in Texas, it’s wise to seek professional help. The Traub Law Office offers free information and consultations. You can reach us at (512) 246-9191, or email us, or fill in the form to the right.
UM/UIM coverage is about protecting yourself and your family from financial hardship due to others’ lack of insurance. It’s an important consideration for any Texas driver. Don’t hesitate to reach out for expert guidance in navigating these complex claims.
Conclusion
Understanding and utilizing UM/UIM coverage can be a financial lifesaver after an accident with an uninsured or underinsured driver. While the process of filing uninsured and underinsured claims in Texas may seem daunting, remember that you don’t have to navigate it alone. With the right knowledge and professional support, you can ensure you’re fully protected and fairly compensated. Take the time to review your policy, consider your coverage options, and don’t hesitate to seek legal advice when needed. Your financial security and peace of mind are worth the effort.
