What Are the Pros and Cons of Having Uninsured Motorist Coverage in Fort Worth, Texas?

In Texas, uninsured motorist (UM) and underinsured motorist (UIM) coverage aren’t required, but insurance companies must offer it. If you don’t reject the coverage in writing, it will automatically be added to your policy. That small detail could make a big difference after a crash. At Anderson, Cummings & Drawhorn, LLP, we’ve worked with many drivers who were hit by someone without enough insurance—or none at all. These are the moments when having UM/UIM coverage really matters.

Let’s examine the pros and cons of uninsured motorist coverage in Texas so you can decide whether it’s a smart addition to your policy.

Below, our Fort Worth auto accident lawyers explore the pros and cons of uninsured motorist (UM) coverage. Review the advantages and disadvantages of this coverage can help you decide if it is worth the investment.

If you were injured in a car accident caused by an uninsured driver, we may be able to help you seek compensation. At Anderson, Cummings & Drawhorn, LLP, we have more than 50 years of combined experience and have recovered more than $100 million in compensation on behalf of our clients, including those injured by negligent drivers.

Call now to discuss your legal options at (817) 920-9000. No upfront fees.

How Does Auto Insurance Work After a Texas Car Crash?

Texas is an at-fault state, which means drivers who cause collisions with other vehicles can be held financially liable for the damages that result. That is why the state requires drivers to purchase a minimum amount of liability insurance:

• $30,000 in bodily injury coverage for the injury or death of one person in the collision
• $60,000 in bodily injury coverage for injury or death to all the victims of an accident
• $25,000 in property damage coverage

While these are the minimum amounts, most drivers purchase higher limits. However, some drivers break the law and drive without insurance, which is where uninsured motorist coverage comes in.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage provides compensation to the policyholder after a crash caused by a driver who does not have insurance. You can also use uninsured motorist coverage if:

• The police cannot find the at-fault driver after a hit-and-run crash
• The other driver caused the crash due to road rage
• The at-fault driver was driving the car without the permission of the owner

While Texas does not require drivers to purchase UM coverage, insurance companies are required to offer it when drivers purchase insurance. Drivers who want to reject coverage must do so in writing.

What Does Uninsured Motorist Coverage Pay For?

If an uninsured driver causes a crash, you may be able to use your UM coverage for various damages.

If you purchased UM bodily injury, it may cover the following costs:

• Medical bills, including bills for surgery, hospital stays, emergency treatment, physical therapy, rehabilitation, prescription medications, follow-up appointments with doctors, long-term medical care, medical equipment and more.
• Permanent disability or disfigurement
• Lost wages if your injuries prevent you from working, including during your recovery
• Physical pain from your injuries

If you bought UM property damage, you can use it to pay for:

• Vehicle repair costs
• Damage to other personal property
• Cost of a rental car

What Are the Pros of Uninsured Motorist Coverage in Texas?

There are multiple advantages of adding uninsured motorist coverage to your car insurance policy:

• Financial Protection: UM coverage shields you from having to pay your medical expenses and car repair bills out of your own pocket.
• Coverage for Hit-and-Run Accidents: If the at-fault driver flees the scene of the accident, and the police cannot find the driver, you can use uninsured motorist coverage to pay for your damages.
• Flexibility: Uninsured motorist coverage usually pays for damages from a crash with a driver who is underinsured. In other words, the at-fault driver does not have enough liability insurance to cover the full value of your damages.
• Peace of Mind: You might never need uninsured motorist coverage, but if you have it you do not need to worry about insurance coverage after a crash with an uninsured driver.
• Rental Car Coverage: UM coverage ensures you can get a rental car after the accident.
• Stacking Coverage: Texas gives you the option of buying stackable UM coverage. If you have UM policies on two vehicles, you can stack the coverage from both policies, thereby doubling your coverage.

What Are the Cons of Uninsured Motorist Coverage in Texas?

Despite its advantages, there are some downsides to UM coverage:

• Additional Cost: Adding UM coverage increases your overall auto insurance premium, which can be tough to afford if you are already on a tight budget.
• Coverage Limitations : Your policy might not cover the full cost of your damages.
• Coverage Comes with a Deductible: This is the amount you pay out of pocket before your insurance coverage starts paying for the damages.
• Redundancies: Sometimes, UM may seem like extra coverage, as it may overlap with other parts of your auto insurance policy like collision or medical payments coverage.
• Insurance Companies Often Dispute These Claims: This is particularly likely in a claim for a hit-and-run accident. The insurance company may claim you caused the crash and are trying to fraudulently obtain compensation. This is why you should hire an experienced lawyer to assist you with an uninsured motorist claim.

Would you be able to afford unexpected out-of-pocket expenses, especially ones that may cost tens of thousands of dollars? If not, you should strongly consider purchasing UM coverage.

Why You Should Hire a Lawyer After a Crash with an Uninsured Motorist?

Even if you have UM coverage, recovering compensation can be a challenge without a lawyer. While insurance companies routinely deny and undervalue car accident claims, they may be even more likely to fight you on a claim for uninsured motorist coverage.

Here are some of the ways a lawyer can help you with a UM claim:

Determine if You Can Use Your Coverage for the Crash

Your lawyer can evaluate your insurance policy to determine if it covers your accident. He or she can also determine what specific damages your policy covers.

Gather Evidence to Validate Your Claim

UM claims have specific requirements, so you need strong evidence to use this portion of your insurance. An experienced lawyer will know what evidence he or she needs to build a strong case, such as:

• Records of your medical treatment
• Police report on the accident
• Employment records, including documentation of lost wages
• Estimates of vehicle repair costs
• And more

Evidence helps to prove the crash occurred, you have injuries and those injuries resulted in damages.

Negotiate with the Insurance Company

Insurance companies often undervalue claims, but an experienced lawyer knows how to respond to a low settlement offer. Our attorneys have many years or experience negotiating with insurance companies and securing favorable results for our clients.

Even though you have suffered an injury, insurance companies take claims more seriously when an attorney is involved. If you try to negotiate on your own, it is going to be harder to get the insurance company to offer more compensation. If a lawyer is involved, there is a possibility of a lawsuit, which can motivate insurers.

Conclusion

Wondering whether you need uninsured motorist coverage in Texas? While it’s not required by law, this coverage can protect you financially if a driver hits you without insurance—or doesn’t have enough. Here’s what Texas drivers should know before deciding to opt out.

Uninsured Motorist Coverage Is Not Required but Must Be Offered

Texas doesn’t require drivers to carry uninsured/underinsured motorist (UM/UIM) coverage, but insurers must offer it when you buy liability coverage. While not mandatory, insurers are required to present this option in writing and explain it clearly, according to the Texas Department of Insurance. This ensures drivers understand their right to this protection when purchasing or renewing auto insurance. Many don’t realize the value of UM/UIM coverage until they need it. By requiring insurers to offer it, Texas helps drivers protect themselves from financial hardships caused by uninsured or underinsured drivers.

Automatically Included Unless You Decline in Writing

If you don’t reject UM/UIM coverage in writing, it will automatically be included in your policy. This opt-out setup helps protect drivers who may not fully understand the risks of getting into an accident without uninsured motorist coverage in Texas. Unless you decline in writing, you’re automatically covered—giving you a layer of protection many drivers don’t even realize they have.

Coverage Designed for Unexpected Gaps

UM/UIM coverage fills the gaps when you’re injured or experience property damage in a crash caused by a driver with no insurance or insufficient coverage. This coverage is especially important in severe accidents where the at-fault driver’s policy can’t cover all your damages. For many drivers, it’s a crucial safety net, offering financial support when the responsible party falls short. It may also extend to you and your family as pedestrians or passengers in other vehicles, depending on your policy terms.

Comprehensive Compensation Benefits

UM/UIM coverage provides valuable benefits to ease the financial burden after an accident. It can cover:

• Medical bills and hospital expenses
• Lost wages if you’re unable to work due to injuries
• Vehicle repairs or replacement
• Pain, suffering, and other non-economic damages

These benefits are invaluable in serious accidents where recovery and repair costs can be overwhelming.

State-Mandated Minimums

The minimum UM/UIM limits in Texas are:

• $30,000 for bodily injury per person
• $60,000 for bodily injury per accident
• $25,000 for property damage

These limits are set by law to provide basic protection. However, they may not cover all the costs in serious accidents involving major medical bills or property damage. Drivers should evaluate their needs and risk tolerance when choosing coverage limits.

Higher Coverage Limits Available

For added protection, policyholders can buy higher UM/UIM coverage limits. This extra coverage offers financial security after a serious collision, helping cover costs like long-term medical care, lost future earnings, or major property damage. The cost of increasing limits is often small compared to the benefits, making it a smart investment for peace of mind.

Underinsured Motorist Coverage for Partial Liability Gaps

Underinsured motorist (UIM) coverage helps when the at-fault driver’s insurance isn’t enough to cover your damages. It covers the gap between their liability limits and your actual costs, like medical bills and lost wages. For example, if the at-fault driver’s limit is $30,000 but your damages total $50,000, UIM can cover the $20,000 difference (up to your policy limit). This ensures you’re not left covering costs due to another driver’s insufficient insurance.

Property Damage Deductible

For uninsured motorist property damage (UMPD) claims, there’s typically a $250 deductible. This is the amount you pay out of pocket before your insurer covers the rest. While it may seem inconvenient, it’s a small cost compared to repairing or replacing a damaged vehicle and provides peace of mind knowing your property is protected.

Covers Hit-and-Run Accidents

UM/UIM coverage is especially valuable in hit-and-run accidents. Your policy may cover injuries and property damage if the at-fault driver flees and can’t be identified. According to the Texas Department of Insurance, this protection applies even if the driver is never found, as long as the incident is reported promptly and you cooperate with your insurer’s investigation. Be sure to notify your insurer quickly after a hit-and-run to ensure smooth claim processing.

Formal Rejection Is Required

You must submit a written rejection to your provider to exclude UM/UIM coverage from your auto insurance. Without this, the coverage remains in place by default, offering automatic protection. Consider your finances, driving habits, and risk tolerance before opting out.

Understanding these factors will help you decide if uninsured/underinsured motorist coverage is right for you.

Injured in a Crash with an Uninsured Driver? Call Anderson, Cummings & Drawhorn, LLP

If you were injured in an accident caused by an uninsured/underinsured driver, call Anderson, Cummings & Drawhorn, LLP for help seeking compensation.

Our experience with cases like these means we can provide the legal support you need during this difficult time. Our lawyers are here to assist every step of the way, and we charge you no upfront fees.

Learn how we can help after an accident. Call (817) 920-9000.