Explore Uninsured Motorist Coverage in Texas

What Uninsured Motorist Coverage Means in Texas

Uninsured motorist coverage generally applies when a driver who is legally responsible for an accident does not have insurance available to pay for covered damages. Underinsured motorist coverage addresses situations where the responsible driver's liability insurance is insufficient to cover the injured person's legally recoverable damages, subject to applicable policy limits and Texas law.

Texas Department of Insurance information identifies several types of losses that may be covered under UM UIM protection. The exact amount available depends on the policy's limits and the circumstances of the claim.

• Medical expenses for the insured and covered passengers may be included.
• Vehicle and other covered property damage may be covered.
• Certain rental vehicle expenses may be covered.
• Some policies may provide compensation for pain and suffering.
• Diminished vehicle value may be included when applicable.
• Coverage can apply to qualifying hit and run accidents.

How Texas UM UIM Coverage Works After an Accident

When an accident occurs, determining whether the other driver has insurance is an important part of the claims process. If the responsible driver has no insurance, uninsured motorist coverage may provide a source of compensation when the policy requirements are satisfied. If the driver has insurance but the available limits are insufficient, underinsured motorist coverage may become relevant.

Texas law also establishes rules concerning the availability of this coverage. Insurance Code Section 1952.101 generally requires uninsured and underinsured motorist coverage unless the named insured rejects the coverage in writing. The policy and applicable law determine how a particular claim is evaluated.

• Insurance companies must offer UM UIM coverage with applicable automobile policies.
• A policyholder can reject the coverage in writing.
• Coverage has stated policy limits.
• A deductible can apply to UM UIM property damage claims.
• The policy declaration page identifies important coverage limits and deductibles.
• Policy terms and the facts of the accident determine whether a particular loss is covered.

The Texas Department of Insurance states that the deductible for uninsured or underinsured motorist coverage is $250 for applicable claims. This can differ from a policyholder's collision deductible, which may be higher.

Understanding UM UIM coverage is therefore useful when reviewing an automobile policy, particularly because liability insurance and UM UIM insurance serve different purposes. Liability coverage generally addresses damages a policyholder causes to others, while UM UIM coverage can address covered losses suffered when another responsible driver lacks sufficient insurance.

For Texas drivers, reviewing the declarations page and policy provisions can help clarify the available limits, deductibles, covered losses, and exclusions. After an accident, documentation such as the accident report, insurance information, photographs, repair estimates, and medical records may also be relevant to the claim.

Overall, uninsured motorist coverage is an important component of the Texas auto insurance framework because it addresses certain accidents involving drivers who have no insurance or insufficient insurance. The protection is subject to policy terms, coverage limits, deductibles, and applicable Texas law. Understanding these provisions can help individuals better interpret their automobile insurance policies and the potential coverage available following an accident.