Driving is an essential part of life for most Americans. We rely on our vehicles to get to work, school, the grocery store and more. But what happens if you get into an accident that wasn’t your fault, only to find out the other driver either didn’t have insurance or didn’t have enough coverage to pay for your injuries and vehicle damage?
That’s where uninsured/underinsured motorist coverage comes in. This type of coverage protects you when the at-fault driver lacks sufficient insurance. Here’s a closer look at uninsured/underinsured motorist coverage: why it’s essential to have not just in Laredo, Texas but nationwide.
What is Uninsured/Underinsured Motorist Coverage?
Uninsured motorist coverage pays for injuries and damages caused by a driver with no insurance. Underinsured motorist coverage kicks in when the at-fault driver’s policy limit is too low to fully compensate you for your losses.
For example, let’s say you suffer $50,000 in medical bills from a car accident. The other driver only carries the minimum 25/50/25 policy limits, which translates to:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability
The at-fault driver’s insurance would only pay out $25,000 for your injuries. Your own underinsured motorist coverage would make up the difference so that you aren’t stuck with $25,000 in unpaid medical bills.
Why Carry More Than the Minimum?
In Texas, drivers are only required to carry 30/60/25 minimum coverage limits. However, going with the minimums leaves you vulnerable.
Consider that the average bodily injury claim is around $20,000 while the average property damage claim is $4,700 according to the Insurance Information Institute. It doesn’t take much to exceed those minimum policy limits.
Uninsured motorist bodily injury coverage starts at $30,000 per person. But it’s wise to carry more if you can afford it. $100,000 or even $250,000 in uninsured/underinsured motorist bodily injury coverage per person provides much better protection.
Uninsured Motorists in Laredo, Texas
Around 15% of Texas drivers lack insurance, according to 2016 estimates from the Insurance Research Council. That’s one in every seven motorists!
The uninsured driver problem may be even worse in Laredo. As of 2019, an estimated 32% of Webb County drivers didn’t have insurance. This poses significant risks for the community and those who travel regularly in the area.
With potentially thousands of uninsured motorists on Laredo roads, uninsured motorist coverage is a must. Otherwise, you could get stuck paying huge medical and auto repair bills out-of-pocket after an accident.
Underinsured Motorists
Underinsured motorist coverage helps protect against insured drivers who don’t carry enough insurance. Like uninsured motorist coverage, you hope to never need it but will be glad to have it if an at-fault driver’s policy limits are inadequate.
Say you sustain $35,000 in damages after someone runs a red light and hits your car. Their minimum policy limits only cover $25,000. Your underinsured motorist coverage kicks in for the remaining $10,000 so you don’t have to pay it out of pocket.
Situations That Exhaust Policy Limits
Certain types of serious accidents often exceed minimum or even moderate policy limits. These include:
Major injuries
A severe injury like a traumatic brain injury or spinal cord damage can lead to $100,000 or more in medical expenses alone. Extended hospital stays, surgeries, rehabilitation and other care adds up fast.
Permanent disabilities
If an injury causes lifelong disabilities, the at-fault driver’s policy may not be enough to cover loss of income and higher healthcare costs. Underinsured motorist coverage can help fill the gap.
Multiple injured parties
Accidents involving multiple injured victims easily exhaust smaller policies. $30,000 per person won’t stretch far if an at-fault driver injures three or more people.
Death
Wrongful death claims involving loss of income and funeral costs often exceed policy minimums. Your own underinsured motorist coverage can help pay what the at-fault driver’s insurance won’t.
Other Benefits of Uninsured/Underinsured Coverage
Beyond paying for injuries and damages, this valuable coverage also provides:
- Same coverage limits for property damage and bodily injury.
- Payment for hit-and-run accidents with no perpetrator identified.
- Conversion to Part C medical payments coverage once policy limits are exhausted. This provides extended medical care coverage.
- Broad definition of an uninsured vehicle that includes stolen cars, vehicles whose insurer becomes insolvent during the policy term and unidentified hit-and-run vehicles.
How Much Coverage Should You Carry?
Ideally, your uninsured/underinsured motorist coverage limits should equal your liability coverage limits. If you carry 100/300/100 liability limits, your uninsured motorist coverage limits should be 100/300 as well.
Matching your liability and UM limits maximizes protection. The small premium increase is worth it. Skimping on uninsured/underinsured motorist coverage puts you and your family at risk.
Protect Yourself with Adequate Coverage
Don’t take chances by assuming an at-fault driver will have adequate coverage. Around one-third of Texas drivers don’t carry insurance at all. Those who do often stick with minimum limits that won’t go far after a serious accident.
Take a close look at your current uninsured/underinsured motorist coverage limits. If they are lower than your liability limits, it’s wise to increase them to match. This ensures you have enough coverage to protect your assets and pay for medical treatment in a serious crash.
Review your policy with your insurance agent to discuss increasing your uninsured and underinsured motorist bodily injury and property damage coverage. The small premium increase is well worth the added protection. Paying a few extra dollars a month for higher coverage now can save you from paying thousands out-of-pocket later if an uninsured or underinsured driver causes an accident. Don’t gamble with minimum coverage.
Consult Karns & Karns Personal Injury and Accident Attorneys for Legal Help After an Accident
If you or a loved one has been injured in an auto accident in Laredo, don’t hesitate to contact our experienced personal injury attorneys for a free case review. Reach us at 800-4THE-WIN (800-484-3946) to schedule your free consultation with a car accident lawyer Laredo TX.
We have a proven track record obtaining maximum compensation for injury victims and their families and have helped our clients secure hundreds of millions of dollars. Let our experienced Laredo car accident lawyer review your case at no cost and help you pursue the damages you deserve. Don’t wait – call Karns & Karns Personal Injury and Accident Attorneys today!
