UM/UIM Insurance. You Pay Them to Cover You When the Worst Happens.
What is UM/UIM insurance? It stands for uninsured and under-insured motorist coverage. If you get into an accident, and the at fault driver either doesn’t have insurance, or doesn’t have enough insurance to pay you, UM/UIM coverage can be a lifesaver.
In Texas, the minimum insurance coverage you must have is a 30/60 policy. This means there is a maximum of $30,000 in coverage for each person who makes a claim, with $60,000 being the limit for each incident, regardless of how many people were injured. If an at fault driver, who has a 30/60 policy, causes an accident where they only injure one person, there’s $30,000 in insurance money to cover the damages. If there’s two people injured, there’s a total of $60,000, but each person can only get up to $30,000. If more than two people are hurt, each can still only get paid a maximum of $30,000, but the total for everyone involved cannot exceed $60,000. Policies can get much, much larger than just a 30/60, but a 30/60 is the legal minimum in Texas today.
Given that a 30/60 is the minimum, many people driving on the road with you only have a 30/60. Some may even have no insurance at all. Medical bills from even a seemingly minor accident can each cost tens, even hundreds of thousands of dollars. $30,000 isn’t going to cut it in a lot of cases; but even worse, more often than any of us would find reasonable, there’s no insurance at all. According to the Texas Department of Insurance, as many as 2.6 million state-registered vehicles are not matched to an insurance policy at all, not even a minimum policy (https://www.tdi.texas.gov/blog/protect-against-other-drivers-with-uninsured-motorist-coverage.html). That’s only considering state-registered vehicles. The Texas Department of Motor Vehicles estimates it is possible as many as 20% of Texas drivers are uninsured (https://www.txdmv.gov/motorists/register-your-vehicle/texassure-insurance-verification). Either way, 10-20% of the people on the road with you each and every day, don’t have insurance at all. So, what happens when one of those uninsured people causes an accident and you get hurt?
The short answer is: hopefully you have UM/UIM coverage. Without it, your medical bills are probably going to be paid out of your own pocket. Lawyers can help you get compensation for your damages, but lawyers can’t create money out of thin air. There needs to be money for your lawyer to get in the first place. Most people are not independently wealthy where they can pay for unexpected medical bills out of pocket. That’s where insurance comes into play. When some at fault driver insures someone in a car accident, the insurance company of the at fault driver steps in to pay for the damage done. But when the at fault driver has no insurance, or their insurance isn’t enough to pay for your damages, that’s where your own UM/UIM policy can save the day.
To those that don’t have auto insurance: get it. You’re putting people at risk. If self-motivation is the only thing that will get through, consider what happens when your money is someone’s only option to getting necessary treatment in order to get out of pain. The fact that you don’t have much money may not stop them. Wages can be garnished, liens can be put on property, credit can be damaged irreparably. Additionally, not having insurance can result in criminal charges against you and/or your license being suspended indefinitely. A judgment against you will not go away, and if you ever come into any money in your life, it’ll go to paying this judgment. And over the years, the interest on that judgment will keep growing and growing. It’s a hole you may never get out of.
Accidents come in all shapes and sizes. A vehicle could be hit so hard it flips multiple times, and the people inside walk away with only scratches and bruises. On the other hand, a low-speed rear end collision at a stop sign can cause immense pain, the necessity of spinal surgery, and a six-figure medical bill. You are not in control of whether someone else makes a mistake on the road, or how badly that mistake will hurt you. What you can control is whether or not you are protected if the worst happens one day.
UM/UIM insurance is a good thing to have. I have it. But that doesn’t mean the UM/UIM insurance company is your friend. Once you file a claim, whether it’s due to an uninsured driver or because your damages are higher than the state minimum, that insurance company will be adversarial. They don’t want to pay out on claims. Period. All insurance companies exist to make a profit. They don’t make a profit by paying money when the don’t absolutely have to pay. They will look for reasons not to pay you. Your own insurance company, who you’ve paid premiums to for months, or even years, will look try to contest what caused your injuries, or whether you had any “gaps in treatment” they feels are unwarranted, or to see if they feel your bills are just too high. You still need a lawyer. These insurance companies, even your own insurance company, are not your friends. They will happily collect your payments one day, and turn adversarial the next. In thinking about protecting yourself, please always consult with an attorney when dealing with claims for injuries – whether against another person’s insurance, or against your own. You need someone on your side to fight for your best interest. Insurance companies hire hundreds, even thousands, of trained professionals to advocate for them. You need one to advocate for you.
If you have been injured, be sure to consult with an attorney as soon as possible. Make sure you have proper representation to guide you through this process. Every case is different and comes with its own unique issues. While this article can provide prudent tips, it is no substitute for an attorney guiding you through the nuances of your unique case.
