Austin Underinsured Motorist Accident Lawyer

Even when the driver who caused your Austin car accident has insurance, their policy limits may be far too low to cover your injuries. Texas requires only $30,000 per person in minimum liability coverage — an amount that can be exhausted by a single ambulance ride and emergency room visit. When the at-fault driver’s insurance is not enough to pay for your damages, your own Underinsured Motorist (UIM) coverage fills the gap. At McFarlane Law, we help Austin accident victims access every dollar of UIM coverage they are entitled to, fighting their own insurance companies when necessary.

Call (512) 222-4900 for a free consultation if the at-fault driver’s insurance is not enough to cover your injuries.

What Is Underinsured Motorist Coverage?

Underinsured Motorist (UIM) coverage is a component of your own auto insurance policy that provides additional compensation when the at-fault driver’s liability insurance is insufficient to cover your damages. UIM coverage is typically bundled with Uninsured Motorist (UM) coverage in Texas policies — often written as “UM/UIM” coverage. UIM kicks in after the at-fault driver’s liability limits have been exhausted. For example, if the at-fault driver has $30,000 in liability coverage but your damages total $200,000, and you carry $100,000 in UIM coverage, your UIM policy can pay up to an additional $100,000 (subject to policy terms and offsets).

Why UIM Coverage Is Essential for Austin Drivers

Texas minimum liability limits — $30,000 per person / $60,000 per accident / $25,000 property damage — are dangerously low. A moderate car accident injury can easily generate $50,000 to $100,000 in medical expenses alone. Serious injuries — traumatic brain injuries, spinal cord damage, multiple fractures requiring surgery — can produce lifetime medical costs in the millions. When the at-fault driver carries only minimum coverage, the gap between their policy limits and your actual damages can be enormous. UIM coverage bridges this gap and ensures you have access to adequate compensation regardless of the other driver’s insurance choices.

How UIM Claims Work in Texas

The UIM claims process begins after the at-fault driver’s liability policy has been exhausted or an offer at policy limits has been made. Typically, our attorneys first negotiate with the at-fault driver’s insurer to obtain their full policy limits. Once the third-party claim is resolved, we turn to your UIM carrier with a demand for the remaining damages. Your UIM insurer evaluates liability, reviews your medical records and damages documentation, and makes an offer. If the offer is inadequate, we negotiate, mediate, arbitrate, or litigate to obtain a fair result.

An important nuance: in Texas, UIM coverage operates on a “difference in limits” basis in most policies. This means your UIM coverage pays the difference between the at-fault driver’s liability limits and your UIM limits — not your UIM limits on top of the at-fault driver’s coverage. For example, if the at-fault driver has $30,000 in coverage and you have $100,000 in UIM coverage, the maximum combined recovery is $100,000 (not $130,000). Some policies use “add-on” language that stacks on top, so policy language matters. Our attorneys review your specific policy to determine the maximum available coverage.

Challenges in UIM Claims

UIM claims present unique challenges because you are making a claim against your own insurance company. Despite the fact that you have paid premiums for this coverage, your insurer will treat your UIM claim like any other claim to be minimized. They will challenge the value of your injuries, argue about medical expense reasonableness, dispute lost wages calculations, raise pre-existing condition defenses, and potentially conduct surveillance and monitor your social media. The same tactics insurance companies use in third-party claims are applied with equal vigor in UIM claims.

An additional challenge is the consent-to-settle requirement found in many Texas UIM policies. Before you can accept the at-fault driver’s policy limits and trigger your UIM claim, your own insurer may require advance notice and consent. Failing to follow this procedure properly can jeopardize your UIM claim. Our attorneys handle this process carefully to protect your rights under both the third-party and UIM claims.

Stacking UIM Coverage

If you have multiple vehicles on your auto policy, Texas law may allow you to stack your UIM coverage across those vehicles, effectively multiplying your available coverage. Whether stacking is permitted depends on the specific policy language. Our attorneys analyze your policy to determine if stacking applies and fight for the maximum available coverage.

Bad Faith in UIM Claims

When your insurance company unreasonably denies or underpays a legitimate UIM claim, they may be liable for bad faith under the Texas Insurance Code. Bad faith claims can result in additional damages beyond the policy limits, statutory penalties, and attorney’s fees. If your insurer is not handling your UIM claim fairly, McFarlane Law evaluates and pursues bad faith claims when appropriate.

Maximizing Your Recovery in Underinsured Cases

McFarlane Law’s approach to underinsured motorist cases involves maximizing the third-party recovery first by obtaining every dollar available from the at-fault driver’s policy, then pursuing full UIM benefits under your own policy, evaluating all additional coverage sources including MedPay, PIP, and umbrella policies, identifying all potentially liable parties (employers, vehicle owners, government entities, manufacturers) who may have separate insurance, and negotiating medical liens and subrogation claims to maximize your net recovery. Our personal injury attorneys handle every aspect of this complex, multi-layered process. Call (512) 222-4900 or fill out the form on this page for your free consultation.