You may think that because you carry an active auto insurance policy on your vehicle, you are protected in the event of a crash. In reality, insurance coverage is more complex. Depending on the kind of policy you have and the riders it includes, there could be circumstances when you find you don’t have adequate coverage.

One of those situations is when another driver without insurance causes a collision. Your insurance company generally seeks compensation from the policy of the driver at fault. When the person responsible for the collision doesn’t have any coverage, there is no way for your insurance company to recoup payout on your claim.

What kind of insurance does Texas law require?

There is a minimum amount of insurance required to drive on Texas roads. These minimum amounts are $30,000 in bodily injury coverage for an accident with one injured person. If there is more than one person hurt in a crash, the minimum coverage is $60,000 for bodily injury per accident. There is also a mandated $25,000 in property damage coverage.

This coverage applies to claims by other parties when you cause an accident. If you aren’t responsible, liability insurance does not cover the cost of repairing or replacing your vehicle. It also won’t cover the cost of your injuries. In other words, the minimum policy available only protects you from claims of injury or loss by others if you cause an accident. They don’t protect you if someone else causes the crash.

Adding riders can protect you from uninsured collisions

In order to have peace of mind and protection in the event of a collision, you should carefully review your insurance policy. Adding coverage for uninsured and underinsured drivers is important. These riders provide you with medical and property damage coverage if someone else doesn’t have an insurance policy to offset your losses.

It’s easy to understand why you need uninsured driver coverage, but people often overlook the risk of underinsured drivers. Underinsured drivers may have a policy, but it may be the bare minimum required by the state.

If you drive a newer vehicle, an electric vehicle or perhaps a vehicle modified for accessibility, repairs or replacement for the vehicle could cost well over the $25,000 minimum coverage. Medical expenses can also quickly exceed the minimums set by the state, leaving you at risk of accruing substantial medical debt during your recovery.

Upgrading your insurance policy can protect you against financial issues caused by an uninsured driver. If you have already experienced a collision with someone who did not have insurance or whose policy isn’t covering all of your expenses, you may have to consider a personal injury lawsuit to recover the difference.