The Unfairness of Uninsured and Underinsured Motorist Claims in Texas
Written by Greg on May 23, 2018
In the state of Texas, the odds of being in an accident are fairly good particularly if you live in a major metropolitan area such as Houston, Dallas, Austin or San Antonio. The odds are also pretty good that the driver who caused the accident will be either uninsured or underinsured.
For this reason, we have for years recommended that everyone purchase underinsured or uninsured motorist coverage.
Lawsuit Against Your Own Insurer Required
Unfortunately for Texas consumers, current case law tilts the claims handling process in favor of the insurance companies and against Texas families. The reality is that the claims process for underinsured and UIM has gotten so ridiculous that a lawsuit is almost always required and frequently the insured is forced to a jury trial in order to obtain any semblance of fairness on their UM or UIM claim with their own insurance company.
Thus, the purchaser of underinsured or UIM coverage in the state of Texas will almost certainly be required to endure the expense of litigation not to mention the time involved for their participation to resolve and close and Underinsured or UIM claim.
In the past, consumers were treated fairly by their own insurance companies and often were able to resolve their underinsured or UIM claims without the necessity of an attorney. No longer is this true. Not only must the Texas consumer hire an attorney and pay the expense of litigation but also file and prosecute a lawsuit to conclusion to get paid.
On the other hand, insurance companies under current case law, are not obligated to do anything regarding fair settlement with their own insured of an uninsured or underinsured claim prior to a judgment being rendered by the court.
It’s time we put Texas families first and stopped the abusive claims handling practices of our insurers which are currently allowed, by making insurers once again responsible for reasonably and timely resolving claims with their own insureds.
Contact Your State Representative
Because courts have favored the insurance companies and ruled against Texas consumers on holding insurance companies accountable for claims practices with underinsured and uninsured motorist claims, legislative fixes are required. Call your state representative and tell him you demand insurance reform for Texas consumers.