In Texas, it's the law to carry liability insurance on your car. This type of insurance covers (or pays for) the damage you cause to someone else in an accident. In a perfect world, everyone would carry liability insurance as required by law. But this isn't a perfect world. Here in Texas, it's estimated that over 20% of the cars on our roads carry no liability insurance at all. So what happens if you get in a wreck with someone who has no insurance? Well, you are probably out of luck and will be stuck with huge car repair and medical bills, unless you carry the right kind of insurance yourself.
I highly recommend to all of my clients that they carry uninsured motorists' coverage (UIM). This insurance covers YOU if you are injured in an accident that was someone else's fault and he or she doesn't have insurance. It also covers you if the other person caused you damage which exceeds the insurance coverage that they had. The way this comes about is if they have only a minimum limits policy (currently $25,000) and your damages exceed that amount. If you have UIM coverage, then your own insurance will pay for all damages that exceed the other persons insurance, up to the amount of insurance you purchased.
This is relatively cheap insurance to purchase, so I strongly recommend it to protect yourself. Just one trip to the hospital can cost tens of thousands of dollars. Whether or not you have health insurance, these bills can cause an incredible strain on your finances. With all of the uninsured drivers, and with all of the ones who only carry the minimum limits, it makes sense to safeguard yourself.
This issue is discussed in depth in Mark A. Anderson's new book 15 Mistakes That Will Wreck Your Texas Accident Case. This book is available for FREE to Texas residents and can be obtained by calling 817-294-1900 or by filling out an order form at www.maafirm.com.