The State of Texas requires all drivers to carry at least basic liability insurance to drive on Texas roadways. Some policies allow you to include underinsured motorist insurance (UIM), which protects you when the other driver doesn’t have enough insurance to cover your injuries and property damage. UIM insurance is of critical importance because a skilled attorney can not only collect money from the at-fault third-party driver but also from your own insurance company. Here’s what you need to know about UIM insurance:
What is UIM?
UIM is a type of insurance that can be purchased to help cover you if you are involved in an accident with an uninsured driver. If you're hit by someone who doesn't have auto insurance, the UIM coverage will help pay for damages caused by their negligence.
How does UIM work?
UIM insurance is a type of coverage that provides coverage to an insured person in the event of an accident caused by another driver. UIM coverage is often added to a policy as an endorsement, or it can be purchased on its own or as part of a larger insurance package.
Here is a real-world example: If a negligent driver runs a stop sign and hits your vehicle, this driver is at fault and his insurance would be responsible for covering your damages. However, if the at-fault driver does not have insurance, you would be unable to recover anything unless you had UIM coverage. With UIM coverage, you would file a claim against your own policy and provide proof of the at-fault driver’s lack of insurance. The burden would then shift to your insurance carrier to pay for your damages.
How does UIM coverage get added to a policy?
You can purchase UIM coverage when you buy auto insurance, or you can add it to your policy as an addition. It's often purchased as a rider or endorsement, but not always.
You should check with your insurance company to see if they offer it in your state.
Is UIM coverage as expensive as my auto insurance?
UIM insurance coverage is typically a small portion of your auto insurance policy, and it's not required by law. Still, in many cases, it's a good idea for drivers who have at least $50,000 worth of property damage liability protection for their vehicles. The cost of UIM varies by state and can be as low as 1% or 2% of your total annual premium.
Is UIM coverage worth buying?
UIM coverage is a good idea for drivers who want to protect themselves against the cost of an accident. If you have UIM coverage and are involved in an accident with another car, you can use your UIM policy (and its limits) as a secondary source of payment for whatever expenses your auto insurer doesn't pay out of its own funds.
If you don't already have it included with another part of your auto insurance policy, adding UIM coverage can be relatively inexpensive—especially when compared with other kinds of personal injury protection policies like medical payments or umbrella liability policies.
You should consider how much money could be lost if someone were injured or killed while driving your vehicle before deciding to purchase additional protections through purchasing separate policies such as UIM coverage as well as liability coverage. Remember: even though these extras aren't required by law, they'll still help protect against financial loss resulting from accidents involving uninsured drivers hitting other cars driven by insured individuals. UIM insurance is often a good idea for drivers.
We hope that this article has helped you better understand what UIM is and how it can benefit you. If you have any questions about UIM insurance, please contact us at (855) 713-PIGG. Ryan Pigg will be happy to provide further information on the matter or assist with any other needs that may arise.
