Uninsured/Underinsured Motorist Coverage in Austin, TX
Uninsured and underinsured motorist coverage may help address eligible injuries and vehicle damage when an at-fault driver has no insurance, insufficient liability limits, or cannot be identified after a hit-and-run.
// PROTECTION FROM UNINSURED DRIVERS
WHAT IS UNINSURED/UNDERINSURED MOTORIST COVERAGE?
Uninsured and underinsured motorist coverage, commonly called UM/UIM, may help pay eligible expenses when another driver is legally responsible for an accident but has no liability insurance or does not carry enough insurance to cover the resulting loss.
Uninsured motorist coverage applies when the at-fault driver has no insurance or cannot be identified after an eligible hit-and-run. Underinsured motorist coverage may apply when the responsible driver has insurance, but the available liability limits are insufficient to address covered injuries or property damage.
Coverage may include separate protection for bodily injury and property damage. Depending on the policy and claim circumstances, benefits may address medical expenses, lost income, pain and suffering, vehicle repairs, damaged property inside the vehicle, and temporary transportation.
Texas insurers must offer uninsured/underinsured motorist coverage. The named insured may reject it in writing. Coverage, limits, deductibles, eligibility, and claim requirements remain subject to the policy.
Risk Coverage Insurance helps Austin and Central Texas drivers compare available UM/UIM limits and understand how this protection may coordinate with collision coverage, Personal Injury Protection, Medical Payments Coverage, and health insurance.
WHAT MAY UNINSURED/UNDERINSURED MOTORIST COVERAGE PAY FOR?
UM/UIM coverage may help address eligible bodily injury and property-damage losses caused by an uninsured, underinsured, or unidentified at-fault driver, subject to the selected limits, deductible, policy terms, and claim evaluation.
Medical Expenses
May help pay eligible ambulance, hospital, physician, rehabilitation, and other accident-related medical expenses.
Lost Income
May help address eligible income lost when accident-related injuries prevent a covered person from working.
Pain and Suffering
May help address eligible non-economic damages resulting from injuries caused by an uninsured or underinsured driver.
Vehicle Repairs
May help repair covered damage to your insured vehicle after an eligible accident with an uninsured or underinsured driver.
Property Inside the Vehicle
May help replace eligible personal property damaged inside the insured vehicle during the covered accident.
Hit-and-Run Losses
May help address eligible injuries or property damage when the at-fault driver leaves and cannot be identified.
HOW MUCH UNINSURED/UNDERINSURED MOTORIST COVERAGE SHOULD YOU CONSIDER?
The appropriate limits depend on the potential cost of injuries, the value of your vehicle, your existing health and disability benefits, regular passengers, and your ability to absorb an uninsured loss.
The value and replacement cost of your vehicle
Medical costs after a serious accident
Your income and available disability benefits
The number of regular passengers
Health insurance deductibles and cost sharing
Your tolerance for an uninsured financial loss
A common mistake is selecting only enough property-damage coverage to address a minor repair. A major collision can result in extensive vehicle damage, damaged property inside the vehicle, rental expenses, and a potential total loss.
Another mistake is assuming health insurance or collision coverage provides the same protection. Health insurance may address medical treatment but generally does not repair your vehicle. Collision coverage may address vehicle damage, but it does not provide the same injury, lost-income, pain-and-suffering, or personal-property benefits available under applicable UM/UIM coverage.
Texas Department of Insurance guidance suggests considering enough uninsured motorist property-damage coverage to replace the vehicle. A licensed insurance agent can compare available bodily injury and property-damage limits based on your vehicle, passengers, income, and existing insurance.
An uninsured motorist claim may apply when the responsible driver has no liability insurance or cannot be identified after an eligible hit-and-run.
An underinsured motorist claim may apply when the at-fault driver carries liability insurance, but the available limits are insufficient to address the covered loss.
For illustration:
- Total eligible damages: $75,000
- At-fault driver’s available liability coverage: $30,000
- Remaining damages: $45,000
Underinsured motorist coverage may address some of the remaining eligible damages, subject to the policy limit, applicable law, amounts recovered from the responsible driver, and claim evaluation.
Texas insurers must offer uninsured/underinsured motorist coverage unless the named insured rejects it in writing.
Texas Department of Insurance consumer guidance identifies a $250 deductible for uninsured/underinsured motorist property-damage claims. Bodily injury and property-damage coverage may have separate limits and claim requirements.
Review the declarations page and coverage forms to confirm the selected limits, applicable deductible, covered people, covered vehicles, and reporting requirements.
UNINSURED MOTORIST PROPERTY DAMAGE VS. COLLISION COVERAGE
Both coverages may help repair your insured vehicle, but they apply under different circumstances and may provide different additional benefits.
Uninsured Motorist Property Damage
May help address covered vehicle damage caused by an uninsured, underinsured, or unidentified at-fault driver. It may also address eligible property inside the vehicle and temporary transportation expenses.
Collision Coverage
May help repair or replace your insured vehicle after a covered collision with another vehicle or object, regardless of whether the other driver has insurance.
Texas UM/UIM property-damage coverage generally has a $250 deductible. A collision deductible depends on the amount selected under the policy and may be higher. UM/UIM may also provide benefits that collision coverage does not.
WHAT UNINSURED/UNDERINSURED MOTORIST COVERAGE USUALLY DOES NOT COVER
What Happens When Damages Exceed Your UM/UIM Limit?
The applicable UM/UIM limit is the most the insurer will generally pay for eligible damages, subject to the policy terms, prior recoveries, deductible, and claim evaluation.
For illustration, assume:
- Eligible bodily injury damages: $90,000
- Amount available from the at-fault driver: $30,000
- Remaining eligible damages: $60,000
- Available underinsured motorist limit: $50,000
The remaining damages exceed the available underinsured motorist limit by $10,000.
Health insurance, Personal Injury Protection, Medical Payments Coverage, disability benefits, another applicable policy, or personal funds may address portions of the remaining loss. Coverage depends on the policies and accident circumstances.
What UM/UIM Coverage Usually Does Not Cover
UM/UIM coverage is not designed to pay every expense associated with an accident. Common exclusions or limitations may include:
Damage you intentionally cause
Routine maintenance or mechanical failure
Normal wear, deterioration, or depreciation
Losses above the selected coverage limits
Expenses unrelated to the covered accident
Claims without sufficient evidence of liability or damages
Injuries involving excluded drivers or vehicles
Certain business or commercial vehicle uses
Property excluded by the policy
Claims reported outside policy requirements
Amounts already recovered from another responsible party
UM/UIM coverage generally requires evidence that another driver was legally responsible and uninsured, underinsured, or unidentified under the policy terms.
IMPORTANT UNINSURED/UNDERINSURED MOTORIST DECISIONS
Review Bodily Injury Limits
Consider medical expenses, income, passengers, and the financial impact of a serious injury caused by an uninsured driver.
Protect the Vehicle’s Value
Compare the property-damage limit with the current value of your vehicle and the cost of replacing it after a total loss
Review Before Rejecting Coverage
Consider collision coverage, health insurance, disability benefits, emergency savings, and regular passengers before rejecting UM/UIM in writing.
Related Coverage Options
UM/UIM coverage addresses losses caused by drivers with no insurance or insufficient liability limits. Review these related coverages to understand how your policy may respond to injuries and vehicle damage.
Collision Coverage
May help repair or replace your insured vehicle after a covered collision, regardless of whether the other driver has insurance.
Personal Injury Protection
May help pay eligible medical expenses, lost income, funeral expenses, and certain other covered costs following an auto accident.
Medical Payments Coverage
May help pay limited eligible medical and funeral expenses for you, eligible family members, and passengers after an accident.
//FAQ
ANSWERS ABOUT UNINSURED/UNDERINSURED MOTORIST COVERAGE
What does uninsured motorist coverage pay for?
It may help address eligible injuries and property damage caused by an at-fault driver who has no liability insurance or cannot be identified after an eligible hit-and-run.
Depending on the policy, benefits may include medical expenses, lost income, pain and suffering, vehicle repairs, damaged property inside the vehicle, and temporary transportation
What does underinsured motorist coverage pay for?
It may help address eligible damages that exceed the available liability limits of the at-fault driver, up to the applicable underinsured motorist limit and subject to policy terms and prior recoveries.
Is uninsured motorist coverage required in Texas?
Texas insurers must offer UM/UIM coverage, but the named insured may reject it in writing.
Does UM/UIM coverage apply to hit-and-run accidents?
It may apply when the responsible driver leaves the scene and cannot be identified, subject to policy requirements and evidence supporting the claim.
Do I need UM/UIM coverage if I have collision coverage?
Collision coverage may help repair your insured vehicle, but it does not provide all the injury and additional property benefits that may be available under UM/UIM coverage. The deductibles may also differ.
What is the deductible for uninsured motorist property damage in Texas?
Texas Department of Insurance consumer guidance identifies a $250 deductible for uninsured/underinsured motorist property-damage claims.
How much UM/UIM coverage should I carry?
Consider the value of your vehicle, possible medical expenses, income, regular passengers, health insurance, disability benefits, and your ability to absorb an uninsured loss. TDI suggests considering enough property-damage coverage to replace your vehicle.
//Talk to an Insurance Expert
REVIEW YOUR UNINSURED MOTORIST COVERAGE OPTIONS
Tell us about your current auto insurance needs. A licensed insurance agent can review your request and discuss available bodily injury and property-damage limits.
Submitting this form does not bind, change, or confirm insurance coverage. Coverage availability, terms, limits, pricing, deductibles, and eligibility vary by insurer and policy. Your policy documents determine the coverage provided.