Auto Insurance explained: UM/UIM

 Uninsured and underinsured auto insurance coverage helps cover you, your car, and any passengers when another person is at fault and either doesn’t have insurance or their limits aren’t high enough to cover the damages.  I have read from a few different articles that in the U.S. estimates of 15-20% of drivers do not have insurance.  In Texas uninsured drivers are closer to 25%.   So why would you need uninsured/underinsured coverage for your car insurance and what does it cover? 

Uninsured coverage—is coverage for an accident with someone that does not have insurance, when it is found to be their fault or you are involved in a hit and run.   If he does not have insurance and the accident is found to be his fault– how are you going to get your car fixed?  Take him to court?  You could but how long is it going to take and if he doesn’t have any money what are you going to win?   If you have uninsured motorist coverage on your auto insurance policy you can make a claim with your own auto insurance company to pay for the damages to your car.  There are 2 parts of the coverage: property damage and bodily injury.  The property damage part pays for your car and the bodily injury part covers you and your passengers’ medical bills.  It can also cover lost wages and pain and suffering. 

Underinsured coverage—is coverage for when the auto insurance limits of the other driver are not enough to cover your damages.  If the person that hits you has the lowest state mandated auto insurance rates of 30/60/25 and your injuries and damages are higher than that how are you going to get the money?  If you have underinsured motorist coverage you can file a claim with your underinsured motorist coverage with your own auto insurance company. 

For example: You are driving your brand new car worth $40,000 with your wife and 2 kids.  Someone totals your car.  His auto insurance limits are 30/60/25.  Your car is worth $40,000.  Your medical bills for your entire family = $80,000 total.  A grand total of over $120,000.  His auto insurance company is only required to pay $85,000.  Who is going to cover the other $35,000?  Plus any lost wages, pain and suffering?  How are you going to get the $35,000 and how long is it going to take to get? 

I have had people say well I have health insurance to cover that.   Health insurance doesn’t cover lost wages, out of pocket expenses, or any pain and suffering.

 Give our Sugar Land office a call if we can help you with your auto insurance.  We have the following companies for auto insurance:

Safeco, Travelers, Mercury, Imperial, Progressive, GMAC, and Homeowners of America

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