A vehicle collision creates enough stress on its own. Finding out that the at-fault driver has little or no insurance can make the situation even harder.
Unfortunately, more Texas drivers face this problem than many people realize. Although state law requires drivers to carry minimum liability insurance, some people drive without coverage. Others carry only the minimum limits, which may not cover serious injuries and financial losses.
Still, you may have options. Understanding uninsured motorist coverage and underinsured motorist coverage can help you protect your finances after a collision.
Understanding Texas Insurance Requirements
Texas law requires drivers to carry liability insurance to help pay for injuries and property damage they cause.
Even when a driver follows the law, though, minimum coverage may not pay for all the losses from a serious collision. Medical bills, lost income and long-term rehabilitation costs can quickly exceed those limits.
For that reason, uninsured and underinsured motorist coverage can provide another source of financial protection.
What is Uninsured Motorist (UM) Coverage?
Uninsured motorist coverage may help pay for your losses when the at-fault driver has no liability insurance. It may also apply to certain hit-and-run collisions when no one can identify the driver.
Depending on your policy, UM coverage may help pay for:
- Medical expenses.
- Lost wages.
- Pain and suffering.
- Vehicle repairs or replacement.
Texas auto insurance companies must offer UM coverage when you purchase a new policy. Many drivers keep this protection because it can provide a financial safety net after a serious crash.
What is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage applies when the at-fault driver has insurance, but their policy limits don’t fully cover your damages.
For example, your damages may total $100,000 while the at-fault driver’s policy provides only $30,000 in coverage. In that situation, your UIM coverage may help cover part of the remaining loss, depending on your policy.
What’s the Difference?
Put simply, UM coverage applies when the at-fault driver has no insurance.
In contrast, UIM coverage applies when the driver has insurance, but their coverage doesn’t fully pay for your losses.
Both types of coverage help protect you when the other driver’s insurance falls short. Without that protection, you may need to rely on your own finances or file a lawsuit and later try to collect a judgment.
What You Should Do After a Collision
If you suspect the other driver has no insurance or lacks enough coverage, acting quickly can protect your finances and legal rights.
Consider taking the following actions:
- Call law enforcement and request a crash report.
- Seek medical attention for collision-related injuries.
- Photograph the vehicles, roadway and surrounding area.
- Exchange contact and insurance information with the other driver.
- Notify your insurance company promptly.
- Keep records of medical bills, lost wages and other crash-related expenses.
Good documentation can make a major difference when you later file a UM or UIM claim.
Can You Sue an Uninsured Driver?
Yes. If an uninsured driver caused the collision, you may file a personal injury lawsuit against them and seek compensation for your losses.
Winning a judgment, though, doesn’t guarantee payment. Collecting compensation may become difficult when the driver has limited income or few assets.
That collection risk makes UM and UIM coverage especially useful. These coverages may offer a more realistic path toward financial recovery.
Since every collision involves different facts, an attorney can review the available insurance policies, damages and responsible parties before explaining your options.
Protect Yourself Before a Collision Occurs
Many drivers focus on keeping monthly insurance costs low. Still, rejecting UM or UIM coverage may leave you financially exposed after a serious collision.
Review your auto policy regularly. Ask your insurance agent what coverage you have, what limits apply and how your policy handles uninsured or underinsured drivers.
A small premium increase may provide valuable protection when another driver’s coverage can’t pay for your losses.
Finding out that the person who caused your collision doesn’t have enough insurance can feel overwhelming. Still, it doesn’t mean you have no options. UM and UIM coverage can help protect responsible drivers from financial losses caused by someone else.
If you have questions about a UM or UIM claim, or if another driver’s insurance won’t fully cover your damages, The Johnson Law Firm is here to help. We can review your policy, explain how the coverage works and discuss the legal options available in your situation.
Contact The Johnson Law Firm today to learn more.
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