Uninsured Motorist Coverage Texas: 7 Costly Mistakes Drivers Make
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THE BUNDLEBEE BUZZ
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What’s the Buzz?
Dropping uninsured and underinsured motorist coverage may look like an easy way to lower your auto insurance bill. However, the savings can be small compared with the financial risk after an accident.
The BundleBee guide estimates UM/UIM at only $3–$6 per month on average. Meanwhile, it estimates that 14% to 20% of Texas drivers may be uninsured.
Is Skipping Uninsured Motorist Coverage Really Saving You Money?
You can drive carefully, follow traffic laws, and maintain your insurance. Still, you cannot control whether the person who hits you carries enough coverage.
That is where uninsured and underinsured motorist coverage can become important. Depending on your policy and the type of loss, UM/UIM can help protect you when an at-fault driver has no insurance or does not carry enough insurance.
Therefore, drivers should understand what they are giving up before rejecting this protection simply to reduce the premium.
The Uninsured Driver Risk at a Glance
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1 in 5
Potential share of Texas drivers without insurance cited in the BundleBee guide
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$0
What an uninsured driver may realistically have available to pay your damages
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$3–$6/mo
Average monthly UM/UIM cost cited in the BundleBee guide
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The Texas Uninsured Driver Problem
The BundleBee guide estimates that 14% to 20% of Texas drivers carry no insurance. At the high end, that is roughly one uninsured driver for every five drivers on the road.
As a result, having your own auto insurance does not eliminate the risk. Another driver can cause the accident and still have no liability insurance available for your loss.
UM/UIM coverage is designed for this type of situation, subject to the terms, limits, deductibles, and exclusions of the policy.
7 Costly Uninsured Motorist Coverage Mistakes Texas Drivers Make
1. Dropping UM/UIM Just to Save a Few Dollars a Month
Saving money on insurance is important. Still, drivers should compare the savings with the protection they are giving up.
According to the BundleBee guide, UM/UIM costs about $3–$6 per month on average. That equals roughly $36–$72 per year.
Before removing it, review the actual cost on your policy and ask what expenses you would have to handle yourself after an eligible uninsured-driver accident.
2. Assuming Collision Coverage Replaces UM/UIM
Collision coverage and UM/UIM are not the same thing. Collision primarily addresses covered physical damage to your insured vehicle, subject to your policy and deductible.
However, the BundleBee guide emphasizes that collision coverage does not pay your injury-related medical expenses simply because you were hurt in the crash.
Therefore, do not assume that carrying collision automatically gives you the same protection as uninsured or underinsured motorist coverage.
Collision vs. UM/UIM: Why the Difference Matters
| Issue | Collision Coverage | UM/UIM |
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| Vehicle Damage | May cover eligible damage to your insured vehicle | Coverage depends on the UM/UIM property damage provisions in your policy |
| Injuries | Does not provide bodily injury coverage | UM/UIM bodily injury may apply to eligible injuries |
| Deductible | Your collision deductible generally applies | Depends on the coverage, policy, and state requirements |
| Trigger | Covered collision loss | Eligible loss involving an uninsured or underinsured motorist |
3. Forgetting About Your Collision Deductible
If you rely on collision coverage after another driver hits you, your collision deductible may still apply.
The BundleBee guide uses $500–$1,000 as an example of what a driver might have to pay out of pocket under collision coverage.
Consequently, the small annual savings from rejecting UM/UIM can look very different when compared with a much larger deductible after an accident.
4. Forgetting That an Accident Can Cause Injuries Too
Vehicle repairs may be only one part of a serious accident. You or your passengers may also need medical treatment.
As the BundleBee guide explains, collision coverage is for the vehicle. It does not replace bodily injury protection for you.
For that reason, drivers should review the bodily injury portion of their UM/UIM coverage and understand the limits they carry.
Your Car Is Only Part of the Financial Risk
A damaged vehicle can be repaired or replaced. However, injuries can create medical expenses and other losses that may extend well beyond the vehicle itself.
Therefore, compare your bodily injury protection with your financial exposure instead of focusing only on what it costs to repair the car.
5. Assuming the At-Fault Driver Can Just Pay You Personally
An uninsured driver may legally owe you for the damage they caused. Still, collecting that money can be another matter.
The BundleBee guide makes this point with a simple figure: $0 may be what an uninsured driver can realistically pay you after an accident.
As a result, being legally right does not guarantee that the other driver has enough money or assets available to reimburse your losses.
The Real Math: Is It Cheaper to Skip UM/UIM?
Potential Annual Savings
Using the figures in the BundleBee guide, dropping UM/UIM may save about $3–$6 per month, or roughly $36–$72 per year.
Potential Collision Deductible
Meanwhile, the guide uses a $500–$1,000 collision deductible as an example of what a driver could pay after a covered collision claim.
Potential Medical Expenses
In addition, collision coverage does not pay bodily injury expenses. Therefore, the financial exposure can extend beyond the cost of repairing the vehicle.
Potential Insurance Cost After a Claim
The BundleBee guide warns that claim handling and future insurance costs can create additional financial consequences. Actual premium effects depend on the carrier, claim details, rating rules, and applicable law.
6. Choosing UM/UIM Limits Without Reviewing the Numbers
Simply having UM/UIM coverage is only the first step. Your limits also matter.
A serious accident can involve vehicle damage, injuries, and other covered losses. Therefore, review the limits shown on your declarations page instead of assuming any amount of UM/UIM provides unlimited protection.
Ask your agent to explain the available limits and how each portion of the coverage works before making a decision.
7. Waiting Until After an Accident to Understand Your Coverage
The worst time to learn what your policy covers is after someone has already hit you.
Before an accident happens, review whether you carry UM/UIM, the limits you selected, and any applicable deductibles or conditions.
That way, you know what protection you have before you need to file a claim.
Questions Texas Drivers Should Ask About UM/UIM
Do I Currently Have UM/UIM?
First, check your declarations page or ask your agent. Do not assume the coverage is included without confirming it.
What Are My Limits?
Next, review the limits listed for uninsured and underinsured motorist coverage. Knowing you have the coverage is different from knowing how much protection you selected.
How Much Am I Actually Saving by Removing It?
Ask for the premium with and without UM/UIM. Then, compare the actual savings with the coverage you would lose.
What Deductibles Apply?
Coverage can work differently depending on the type of claim. Therefore, ask your agent to explain any applicable deductibles and policy conditions.
Does My Coverage Address Both Injuries and Property Damage?
Finally, review the actual coverage shown on your policy. UM/UIM bodily injury and property damage protections are distinct coverage considerations.
Uninsured Motorist Coverage Texas: Frequently Asked Questions
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage can provide protection for an eligible loss when an at-fault driver does not have insurance. The exact protection depends on the policy, limits, type of UM coverage, exclusions, and applicable conditions.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage can apply in eligible situations when an at-fault driver’s insurance is not enough to address covered damages, subject to the policy terms and limits.
How Much Does UM/UIM Cost?
The BundleBee guide cites an average cost of about $3–$6 per month. However, actual premiums vary by driver, carrier, vehicle, limits, location, and other rating factors.
Does Collision Coverage Protect Me From an Uninsured Driver?
Collision may cover eligible damage to your insured vehicle regardless of who caused the crash, subject to your deductible and policy terms. However, collision does not provide bodily injury coverage for you.
Will an Uninsured Driver Pay for My Damage?
The at-fault driver may be legally responsible, but that does not mean the person has enough money or assets available to pay your loss.
Should I Remove UM/UIM to Lower My Insurance Bill?
Before removing coverage, compare the actual premium savings with the protection you would lose. The BundleBee guide estimates the savings at only $36–$72 per year on average, while an uninsured-driver accident can create much larger expenses.
The BundleBee Buzz Bottom Line — Small Savings Can Create a Big Risk
Dropping UM/UIM can reduce your premium. However, the BundleBee guide estimates those savings at only $36–$72 per year on average.
Meanwhile, an uninsured-driver accident can involve a collision deductible, vehicle damage, injuries, and other financial consequences.
Before removing the coverage, review the numbers. A few dollars per month may provide protection against a much larger financial problem.
Not Sure if You Have Enough UM/UIM Coverage?
BundleBee shops 80+ carriers across Texas and New Mexico. Let us review your auto policy, explain your uninsured and underinsured motorist limits, and help you compare your available options.
Important Insurance Information
This article provides general insurance information only. Uninsured and underinsured motorist coverage, bodily injury protection, property damage protection, deductibles, premiums, eligibility, limits, exclusions, claim handling, and policy terms vary by insurance carrier, policy, driver, and circumstances. Review your declarations page, policy forms, endorsements, limits, deductibles, exclusions, and applicable conditions with a licensed insurance professional before changing or rejecting coverage.