Austin Insurance Group

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 The law of the land in Texas requires motorists to have automobile liability insurance, this is the type of insurance that pays for another person’s expenses if you cause an accident. 

In theory, every driver on Texas highways is covered by liability insurance to protect other drivers. 

In reality, some people drive without insurance, or they hit and run, or, even if they have the minimum coverage required by law, it is not enough to cover the damage.

 Texas law gives you the opportunity to buy insurance coverage to protect yourself against both uninsured and underinsured motorists.   This coverage is optional, but your insurer must offer you the opportunity to purchase it, and your refusal to purchase it must be in writing.   This coverage protects you, your family members, passengers in your vehicle, and anybody driving your vehicle with your permission.  It pays your medical and funeral expenses, car repairs, car rental, the replacement of damaged contents, lost wages, pain and suffering, disfigurement, and permanent or partial disability up to the dollar limits that you have purchased.

You can buy uninsured or underinsured motorist coverage in the minimum amount or in a larger amount up to the dollar limits of your liability policy. If you are not sure what choice you made when you were offered the opportunity to buy this coverage, talk to your insurance agent or call Austin Insurance Group 512-339-2901.

Your liability coverage protects you from having to pay damages to someone if you cause an accident.  But it will not pay your expenses resulting from an accident with an uninsured or underinsured motorist. Uninsured motorists often have few assets, and you could face significant financial hardship if you do not have this coverage and you are injured by such a driver.

Even if the other driver has liability insurance, it may be only the minimum amount, and this coverage can quickly be exhausted. Medical care is expensive. The replacement cost of even a single vehicle easily can be $30,000 or more.

Your underinsured coverage kicks in to pick up all or part of the difference once the other person’s liability limits are exhausted.

Our recommendation:  Purchase at least the minimum amount of uninsured and underinsured motorist liability coverage and property damage.  If possible, have as much uninsured and underinsured coverage as you have liability coverage. This may be your only protection against uninsured and underinsured motorists. 

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And make sure that your uninsured/underinsured motorist property damage limits exceed the cost to replace your vehicle.  If your vehicle is valued over $25,000, then you should carry the next level of $50,000, and so on.

If you are unsure about the limits to carry, contact our office today.  We’re here to help make sure you have the coverage you need in the event of an accident. 

Your Local Agent

Austin Insurance Group

There seems to be two schools of thought on uninsured coverage: Either drop it completely, or buy as much as you can afford.

1. Drop It Completely, It’s a scam
This line of thinking states that you don’t need this if you get into an accident with an uninsured driver, because

a) Your health insurance will cover your medical bills.
b) Your collision insurance will cover your car damages, although you have to pay your deductible. With uninsured coverage, the deductible in Texas is $250.

There are a couple problems with this theory. First, you need good health insurance that covers you in a car accident. Some actually specifically exclude car crashes where it is someone else’s fault. Also, many people these days have a very high annual deductible, or even just have to pay 20% flat of all medical bills. And what about lost pay and also future wages? That can get pricey.  And what if you had passengers.  If they have no health insurance, they have no coverage.

Also, if you do not have collision coverage, your vehicle damage would not be covered at all.

2. Buy as much as you can afford
This theory basically focuses on the idea that this is where you are buying insurance for yourself and your family, versus liability coverage for others. Now, if you get hurt in an uninsured accident, you don’t have to depend on the guy with no or even the legal minimum $30k of coverage. You have your own $30k, $50k, $100k, $250k, or even $1M of coverage. No need to get your health insurance involved and pay and deductibles. Of course, this means you will be asking your own insurance company for money, and will probably want a lawyer on your side. You want to get everything you can, lost wages, future wages,”pain ansuffering” damages, etc.

And even if you only carry liability insurance and do not carry comprehensive and collision on your own vehicle, you should purchase uninsured motorist property damage to cover damages to your vehicle when hit by someone who has no insurance, or who doesn’t have enough.

It’s all about how much you’re paying and that risk/reward balance… What do you think?

Austin Insurance Group (512) 250-1660

Providing all types of insurance for Texans since 1994.