Don was in a serious car accident. He missed work and family events. His health insurance was picking up the medical bills but the co-pays were beginning to mount up and he missed wages from being off the job for so long. The other driver was clearly at fault but that driver carried no insurance and had no ability to compensate Don for his losses. Don called his own auto insurance carrier to compensate him for his lost wages and other costs not paid for by health insurance, but was told his auto insurance policy did not include uninsured motorist or underinsured motorist coverage, commonly referred to as UM/UIM. Don had been told when he bought the policy that he had "full coverage."

Unfortunately, it is all too common in Texas that people are hit by uninsured or underinsured motorists. The State of Texas estimates that 1 in 5 drivers do not carry insurance. Worse, in June of last year, 5,000 drivers stopped by the Texas DPS just in the Austin Metropolitan area found that 25.5% of these drivers were uninsured. (July 28, 2008 Associated Press "Sizable Number of Texas Drivers Without Insurance.") This means that if you get in an accident in Austin, you have 1 in 4 chance that person won’t be insured.

In Texas, drivers are currently required by law to carry minimum liability coverage of $25,000 per injured person, with a maximum of $50,000 for everyone injured in an accident, and $25,000 for property damaged in the accident. It may be listed on your declarations page as 25/50/25. However, UM/UIM coverage is not required by law. In many cases, like Don’s, policies sold by insurance agents without UM/UIM are commonly called "full coverage" by the insurance agents. Obviously this is far from the truth and can lull you into a false sense of protection from events often beyond your control. Getting the minimum required by law, perhaps for economic reasons, also means that you don’t get UM/UIM coverage.

When a person purchases auto insurance, the insurance agent is required by law to include UM/UIM coverage. Many people are not aware of the reason they may want UM/UIM coverage, think it will increase the cost of insurance dramatically, or feel they won’t need it and don’t want the expense.

Before making that choice you should consider that it is protection not only from those who do not follow the law, but also from those who have only the minimum insurance when the costs of the accident exceed the at fault driver’s policy. It can also cover you if you are a passenger in a person’s car where that driver does not have any or enough insurance if the whether the driver of the car you are in or the other driver is at fault.

If a person buying car insurance in Texas decides they don’t want to purchase UM/UIM insurance, the agent MUST get that decision in writing. If they fail to get you to reject the coverage in writing the insurance company must provide UM coverage, even if it they have not charged you premiums or it is not listed on your insurance declarations page. Often the help of an insurance claims lawyer may be needed to force the insurance company to cover you in such a situation.

UM/UIM insurance is an important part of the protection you may need in the event of an accident. In the current economic crisis, health benefits cannot be assured, and there may be gaps where health insurance is missing from you and your family’s benefits. If you aren’t sure if you carry it, look on your declarations page of your policy. If you don’t find it listed, call your insurance company. We recommend adding it if you don’t currently have it.

Even when you have UM/UIM coverage and are in an accident where it will be needed to compensate you, it is important to remember you are dealing with an insurance company adjuster whose job it is to question your version of an accident and the expense you think they should cover you for. Just because you’re their customer doesn’t mean they won’t question your doctors’ care and recommendations or your out-of-pocket expenses, wages or other damages you are legally entitled to obtain compensation for from your own company.

Keep good records of your conversations with the adjuster, receipts, expenses and make sure you can back-up your lost wages with documentation. There are a number of out-of-pocket expenses you may be entitled to, won’t know to ask for and won’t be offered by your insurance company such as reimbursement of travel expenses and parking for doctor appointments. You also need to be aware that there are time limits to complain to the court if you run into problems with your insurance company, so consider contacting an Austin attorney early after any accident involving an uninsured or underinsured driver where they were at fault.