Driving in Austin means dealing with a harsh truth: Many drivers break the law by not having proper car insurance. The Texas Department of Insurance reports that one in five Texas drivers hits the road without insurance. This puts you at risk every time you get behind the wheel.
What exactly is uninsured motorist coverage?
When a driver with no insurance hits your car, uninsured motorist (UM) coverage pays for your medical bills, lost wages and car repairs. It also helps if you’re in a hit-and-run crash where the other driver takes off. Texas law says insurance companies must offer this coverage, but you can say no to it in writing.
Think of UM coverage as your safety net when there’s no other insurance to cover your costs. It jumps in right away to help you after a crash with an uninsured driver.
How does underinsured coverage protect you?
Underinsured coverage fills the gap when the other driver has insurance but not enough to pay for all your damages. Let’s say you have $75,000 in medical bills and lost wages, but the other driver only has $30,000 in coverage. Your underinsured coverage would help pay that extra $45,000.
The main differences that matter
These two types of coverage work differently:
- Uninsured coverage starts helping right away when there’s no other insurance.
- Underinsured coverage only kicks in after you use up the other driver’s insurance.
- Uninsured claims involve just your insurance company.
- Underinsured claims need multiple insurance companies to work together.
Most Texas insurance companies sell these coverages together as one package. However, knowing how each type works helps you pick the right coverage amounts. It also lets you know what help to ask for after a crash.
If you’ve been hit by an uninsured or underinsured driver, getting fair payment can be tricky. An experienced car crash lawyer can help you find out what coverage applies and fight for the money you need to recover.
