Dallas Uninsured Motorist Accident Lawyer

An underinsured motorist is a driver who does liability insurance but whose coverage policy limits are not enough to cover the losses incurred by the accident. As opposed to an uninsured motorist, the issue for an underinsured motorist is not whether an insurance plan is in place but rather whether that insurance plan is enough.

Every state has mandated statutory minimum amounts that insurance plans must meet. In Texas, the rule is called the “30/60/25” coverage. According to the Texas Transportation Code §601.072, the minimum amounts of insurance coverage required to establish financial responsibility are:

• $30,000 for bodily injury (per person)
• $60,000 for the total accident
• $25,000 for coverage of property damage

While these amounts are the minimum required as statutorily defined, they are only a starting point. Motorists have the opportunity to increase their coverage by paying a higher premium and most typically do.

For drivers who do choose policies with only minimum coverage, the person who causes the accident may not sufficiently be able to have insurance cover all damages and will be required to pay expenses exceeding coverage out-of-pocket.

A driver may choose to obtain a policy with the bare minimum coverage levels to save money on vehicle insurance costs. However, if you cause an accident, the minimal liability coverage limits may not be sufficient to cover all of the damages. In that situation, you may have to pay for expenditures that exceed your coverage limits out of pocket. Typical examples include:

Some insurance plans will offer coverage in the case that the other driver is uninsured or underinsured. These cases can be complicated as the insurance company will have to pay a large amount if either of these definitions apply.

If the other driver does not have insurance coverage, the uninsured motorist policy under your insurance plan should apply. If the other driver does have insurance but does not have policy limits meeting the damages incurred, the underinsured motorist policy under your insurance plan should apply.

However, these policies do have limitations. For one, if you caused the accident, your insurance may refuse to provide coverage. Another limitation often seen is that the extent of the damage goes beyond the coverage policy limits. As such, these cases can be hotly contested by your insurer.

UM/UIM coverage in Texas typically covers expenses related to bodily injuries and property damage when the at-fault driver lacks adequate insurance. This includes medical bills, rehabilitation costs, lost wages, pain and suffering, and repair or replacement costs for your vehicle. It can also cover damages if you’re involved in a hit-and-run accident where the at-fault driver cannot be identified. This coverage is designed to bridge the gap left by the other driver’s insufficient insurance.

The limits for UM/UIM coverage in Texas are usually set at the same levels as your liability coverage. This means if your liability coverage is $30,000 per person and $60,000 per accident for bodily injury, and $25,000 for property damage, your UM/UIM coverage will match those limits unless you choose otherwise. It’s important to review your policy and select coverage limits that adequately protect you, especially considering the costs of medical treatment and vehicle repairs can be substantial.

Purchasing UM/UIM coverage is a wise decision because it provides a safety net against drivers who either have no insurance or insufficient coverage. Texas has a significant number of uninsured drivers, and the minimum liability insurance required by law may not be enough to cover the full extent of damages in a serious accident. By having UM/UIM coverage, you ensure that you have financial protection in place to cover medical expenses, lost wages, and property damage, giving you peace of mind on the road.