What if the other driver has no insurance or too little insurance in Texas?

The state of Texas has one of the highest rates of underinsured and uninsured drivers in the country. If you get hit by someone who doesn’t have insurance, there are a few things you should know.

Uninsured / Underinsured Motorist Coverage (UM / UIM) in Texas

Under Texas state law, insurance companies selling policies in the state must offer uninsured/underinsured motorist coverage. It’s also called UM/UIM.

UM / UIM Coverage in Texas Can Be Refused in Writing

Texas drivers can choose not to pay increased premiums for UM / UIM on their insurance policies. But they must do so in writing.

In any case, it is a good idea to have it. UM / UIM will pay for damages to your car and any injuries you or your passengers may have suffered.

UM / UIM Coverage Limits

Most people who add this to their insurance policy choose the same coverage limits as their main insurance. Under Texas state insurance law, all UM / UIM insurance claims must have a fixed deductible of $250. (The deductible is the amount of money you have to pay before the insurance company will pay.)

Modified Comparative Liability in Texas and UM / UIM

Texas Insurance and Tort Law applies what is known as modified comparative negligence.

That means if you are partly at fault for an auto accident, you may receive less money, even if the other driver caused the accident.

It also means that even if the other driver is partly at fault, if a judge or jury decides you are mostly at fault for the accident (more than 51%) , you may not receive money from your UM/UIM coverage.

Collision Coverage in Texas Liability Insurance for Auto Accidents

If you don’t add UM/UIM coverage, collision coverage might pay for damage to your car. Collision coverage pays for damages to your vehicle, even if you caused the accident. Texas state law requires drivers be insured for damage they cause to other drivers or their vehicles. But drivers registered in Texas do not necessarily have to have collision coverage.

Collision Coverage usually has a higher deductible than UM / UIM

Texas drivers who add collision coverage to their auto insurance policies can usually choose the size of the deductible. This is the amount they will owe before the insurance company is required to pay anything.

If your deductible is $500 and the cost to repair your car is $1,500, you would have to pay the $500 out of your pocket. Your insurance company will pay the remaining $1,000.

If you have been hit by an uninsured or underinsured driver, unless you have UM/UIM or collision coverage, you may not receive any money from the insurance company.

You may have to sue the other driver to recover money for your damages and injuries. Call Justinian and Associates today.