In Texas, uninsured/underinsured motorist coverage (UM/UIM) is optional insurance coverage that protects the policyholder in the event of an accident with an uninsured or underinsured driver. This type of coverage helps to pay for damages and expenses incurred in an accident that are not covered by the liable party’s insurance policy.
Uninsured Motorist Coverage (UM)
Uninsured motorist coverage pays for damages and expenses that result from an accident with a driver who does not have any insurance. In Texas, this type of coverage is not mandatory and must be purchased by the policyholder. If an accident occurs and the other driver is found to be uninsured, UM coverage will help to pay for medical expenses, lost wages, and other damages that would otherwise be covered by the other driver’s insurance policy.
Underinsured Motorist Coverage (UIM)
Underinsured motorist coverage is similar to uninsured motorist coverage, but it pays for damages and expenses that result from an accident with a driver who does not have enough insurance to cover the damages incurred. This type of coverage is also not mandatory in Texas, but policyholders can purchase it to ensure they are protected in the event of an accident with a driver who has insufficient insurance coverage.
Coverage Amounts
The amount of uninsured/underinsured motorist coverage that a policyholder can purchase depends on their individual insurance policy. In Texas, policyholders can purchase UM/UIM coverage up to the limits of their liability coverage, but they can also choose to purchase less coverage. Policyholders should be aware that if they purchase UM/UIM coverage with limits lower than their liability coverage, they may not be fully protected in the event of an accident.
Exclusions
In Texas, there are certain exclusions to uninsured/underinsured motorist coverage. For example, UM/UIM coverage may not cover damages and expenses incurred while driving a vehicle that is not covered by the policy, such as a rental car. Additionally, UM/UIM coverage may not cover damages and expenses incurred in an accident that is not the fault of the policyholder, such as if the policyholder is a passenger in another vehicle. Policyholders should review their insurance policy to understand the exclusions and limitations of their UM/UIM coverage.
Claims Process
If an accident occurs with an uninsured or underinsured driver, the policyholder can file a claim with their insurance company for UM/UIM coverage. The policyholder will need to provide proof of the accident and the other driver’s insurance coverage, if available. The insurance company will then review the claim and determine the amount of coverage that is available under the policyholder’s UM/UIM coverage.
If the policyholder’s UM/UIM coverage is not enough to cover the damages and expenses incurred in the accident, the policyholder may be able to recover additional compensation through a lawsuit against the uninsured or underinsured driver. However, this can be a complex and time-consuming process, so it is important to have adequate UM/UIM coverage in place to help protect against the financial impact of an accident with an uninsured or underinsured driver.
Conclusion
Uninsured/underinsured motorist coverage is an optional type of insurance coverage that can provide protection to policyholders in the event of an accident with an uninsured or underinsured driver. Policyholders in Texas can choose to purchase this coverage up to the limits of their liability coverage, but it is not mandatory. Policyholders should understand the exclusions and limitations of their UM/UIM coverage and should review their insurance policy regularly to ensure they have the coverage they need to protect against the financial impact of an accident with an uninsured or underinsured driver. Having adequate UM/UIM coverage is important to help protect against the financial burden and stress of an accident and to ensure that policyholders are fully compensated for their damages and expenses.
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