The Problem of “Illusory” Underinsured Motorist Provisions

Last updated on: December 14, 2012

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One trap for car accident claimants is loopholes in their Underinsured Motorist provisions. Underinsured Motorist (UIM) provisions are clauses in the contract between you and your insurance company, where your insurance company agrees to pay for your medical bills if you get hit by another driver who is carrying too little liability insurance. While they are a great idea, insurance companies will usually try to avoid paying for their customers’ medical bills by cleverly drafting these clauses so that the insurance company manages to avoid ever paying under the contract.

Suppose that you are hit by a drunk driver and break an arm or a leg. Your medical bills could easily reach well over $30,000, the minimum amount of liability insurance that drivers are required to carry in Texas.  You expect your insurance to pay the difference; however, you are told that the insurance company will not pay anything, because your UIM policy has a limit of $25,000, meaning that, because the drunk driver has a larger policy limit of $30,000, he is not underinsured, and you cannot collect any of your own UIM policy. As a result, the way this contract is drafted, there would literally never be a scenario where you would actually be able to collect under the UIM provision.

The attorneys and staff at Zinda Law Group believe that insurance companies should keep their promises, and not be able to avoid paying by pointing to loopholes in their contracts. If you have been involved in a car accident and are unsure about how to negotiate with an insurance company, contact us today.