Why You Need Uninsured/Underinsured Motorist Coverage in Texas
Written by Greg on January 21, 2016
The truth of the matter is that one out of every three drivers in the state of Texas is not insured. This number is shocking, because automobile liability insurance is required within the state and fines can be significant. Nevertheless, a very high percentage of people just do not have insurance coverage on your vehicle or think they are covered but they are not because they bought a “junk” insurance policy.
Many people have trouble making their bills and only pay for automobile insurance when it is time to license the vehicle. Thereafter, they skip the payments and the insurance lapses. Others, believe that their car was covered and the other drivers and their family would be part of the policy only to find out after an accident that is not the case.
The Junk Insurance Problem in Texas
The junk insurance problem was started when the insurance Commissioner for the state of Texas allowed companies issuing automobile insurance in the state to sell non-standard policies. In effect, the commissioner relinquished regulatory controls and the public paid the price. Many people were outraged when they were in an accident with others who thought they had insurance only to find out there was no coverage. The problem got so bad that the legislature tried to fix the problem and now require those selling junk policies to do a better job disclosing who is not covered to the purchaser. However, the problem has not been fixed and is as great a problem as ever for Texas families.
Consumers are left holding the bag while insurance companies are maximizing their profits within the state because they are able to sell junk policies. Every time there is an accident within the state of Texas and the driver of the vehicle was not covered under the auto policy for the car, the party that was struck and not at fault usually ends up suffering the economic consequences.
The Truth About Texas Tort Reform
Despite promises made to us regarding the cost of insurance, the only real result from Texas tort reform has been to maximize insurance company’s profits. While groups that are funded by the insurance industry continue to make claims of lawsuit abuse, the reality is that Texas is a honey hole for insurance companies and they continue to maximize their profits on the backs of Texas families because our leaders refused to hold insurance companies accountable for the cost of their policies.
It sounds pretty outrageous that you can be forced to purchase insurance for your automobile but leaders refuse to regulate the cost to make insurance affordable. Texans agree that the cost of their insurance continues to skyrocket despite giving up valuable and substantial rights due to tort reform. It is outrageous that insurance companies issuing auto policies within the state of Texas spend one of the lowest percentages of premium dollars collected on actual claims in the country.
Regardless of whether the person you are in an accident with could not afford coverage or whether they thought they were covered but bought a junk policy, when you’re an accident without fault and the other person is uninsured you are in jeopardy. As stated previously, when a third of the motoring public within the state are not covered by insurance or covered by inadequate insurance, the odds are pretty good that if you are in a crash you may end up covering your own damages. This is where UIM insurance coverage comes in to play.
What Uninsured Motorist Coverage Covers
Uninsured motorist coverage covers situations where you are in an accident caused by someone else’s fault and they are not covered by insurance. In effect, your own insurance company steps into the shoes of the negligent driver and provides insurance coverage for your legally recoverable damages – up to the limits of your policy.
Sold with uninsured motorist coverage is underinsured motorist coverage, which provides help if you have very serious injuries and damages and the person who caused the crash did not have sufficient insurance coverage to pay all of your damages. In this instance, your own insurance company pays your damages above the limits of the negligent driver – up to the limits of your policy.
If you been into an accident with an uninsured driver or have suffered serious injuries and the insurance coverage appears inadequate, call us for free no obligation consultation about your rights and options-
Baumgartner Law Firm- 281.587.1111