Although every driver is required to be covered by auto liability insurance — insurance that covers for another driver’s expenses if you cause an automobile accident — some drivers either have no coverage, coverage that has lapsed, or coverage that will not sufficiently cover damages in the event that they cause an accident. According to the Insurance Information Institute, about one in eight drivers were uninsured in the United States in 2012.
If an uninsured or underinsured driver crashes into your vehicle and you are injured, you may be stuck with thousands of dollars in out of pocket expenses.
In these cases, it is vital to have uninsured or underinsured motorist coverage, sometimes referred to as UM/UIM coverage. In some states, it is required to have UM/UIM auto coverage. In other states, like Texas, by law you are afforded the opportunity to purchase UM/UIM coverage with your auto insurance policy. It is crucial to purchase this optional coverage to protect you, your passengers, and your finances.