Uninsured/Underinsured Auto Coverage

Did you know that the auto insurance that you have paid for all these years can refuse to pay even if it is clear that you were injured through no fault of your own? Let me give you an example. You are stopped at a light and a drunk hits you. You go to the hospital and everyone knows you are seriously injured. The drunk is arrested and taken to jail for causing the wreck and your medical bills are increasing daily. You learn that the drunk has no insurance, so you make a claim on your insurance under the uninsured portion of your policy. That is why you have been making those payments all these years. You submit all your bills and even send them the police report. You then get a letter stating that they do not have to pay anything until the drunk is found liable and the damages are established. Your medical is now over $40,000.00 and your uninsured coverage is only $50,000.00 clearly they will pay it and not make you hire a lawyer and file a lawsuit right. Wrong. The Texas Supreme Court has expressly permitted this very action and the insurance companies are taking full advantage of it. You may now have to hire a lawyer, file a lawsuit and incur all the cost of filing fees, depositions, etc. to "prove" the drunk was at fault and what your damages are, and once you do all that and get a verdict, you would think you would get the policy limits ($50k in our example), plus your expenses and attorneys fees because you paid those premiums to get treated fairly, but that is not the case. In our example, let's say the jury finds the drunk at fault and awards $150,000.00. The Supreme Court has held that if the policy limits are tendered timely (within 5 days) of the judgment, all they owe is the policy ($50k), no attorneys fees or expenses. So why would an insurance company ever settle an uninsured case for the full value when they know they can make you spend time and money and ultimately will get less. If you think this is wrong, you are right. Let me know your thoughts.