UNINSURED / UNDER-INSURANCE MOTORISTS COVERAGE
If you have an accident caused by a driver without insurance, it is likely, you will not be able to recover the damages to your car; your medical bills, or lost wages. What can you do?
According to the Texas Department of Transportation there where over 250,000 persons injured in car accidents in Texas in 2019. Statistically, 1 n 7 of the drivers in these accidents did not have car insurance.
Every time you apply for auto insurance, you are offered the option of obtaining “Uninsured / Underinsured motorists’ coverage (UM/UIM coverage). This coverage comes into effect when a person who caused an accident does not have auto insurance or the person left the scene of the accident and cannot be located. In such instances, if you have UM/UIM coverage, your insurance company will then cover the expenses of your loss, whether property or personal injury damages up to the limits of your primary insurance coverage. Minimum personal injury limits in Texas is $30,000 for an individual, $60,000 for an incident, and $25,000 for property damages. As medical bills, lost wages, and the value of your car, can be much higher than this, it is not uncommon for some people to select higher limits than the minimum.
The UM/UIM coverage is relatively cheap, about $100 a year. The law requires that your insurance agent offer this coverage, BUT you have a right to reject the coverage by signing a denial form. Unfortunately, too many people want to pay the absolute minimum for car insurance, get only the minimum limits and reject the UM/UIM coverage. Needless to say, this is extremely short sighted, especially after an accident with an uninsured person who was at fault, and you are literally left “holding the bag.” Next time you are shopping for auto insurance, or reviewing your policy at renewal, insist that your agent include UM/UIM coverage on your policy.
Contact Elliott Klein at the Law Office of Elliott Klein, PLLC at ekleinlaw@gmail.com if you have any questions or comments about this blog.