When you get behind the wheel, you likely assume that other drivers carry enough insurance to cover an accident. Unfortunately, that is not always the case.
In Texas, thousands of drivers are either uninsured or carry minimal coverage, leaving you vulnerable if a crash occurs. Even if you have insurance, an accident with an underinsured motorist (UIM) can create financial, legal and emotional challenges that catch many drivers off guard.
Understanding the risks and how to protect yourself is crucial for avoiding serious out-of-pocket losses.
Impact of an underinsured driver
In Texas, about 14% of drivers have no liability insurance, so the risk of being in a crash with someone who cannot cover your damages is significant. Being involved in a crash with an UIM can affect you in several ways:
- Out-of-pocket expenses: Your medical bills, car repairs and lost wages may exceed the at-fault driver’s coverage.
- Difficulty recovering damages: Negotiating with insurance companies can be slow and frustrating, especially if the other driver’s policy limits are low.
- Coverage gaps: Your standard liability coverage might not fill the gap, leaving you financially exposed.
- Legal complications: You may need to file a personal injury claim or even a lawsuit to receive adequate compensation.
- Emotional stress: Financial strain and disputes with insurers can add significant stress after an already traumatic accident.
These situations highlight why reviewing your insurance limits is crucial.
How to protect yourself
One of the best ways to protect yourself from underinsured motorists is to buy uninsured or underinsured motorist coverage (UM/UIM).
This coverage helps pay for medical bills, lost wages and property damage that exceed the at-fault driver’s insurance limits. It also covers your property if the other driver has no insurance or is involved in a hit-and-run.
You can choose coverage limits that fit your financial needs. Even if you already have car insurance, checking your policy and increasing UM/UIM limits can give you extra protection and peace of mind.
Stay protected on the road
Not every driver in Texas carries enough insurance. Having the right coverage helps reduce the financial impact of a crash and lets you focus on recovery. Make sure your insurance policy meets your needs so you are not caught off guard.