Jan 31 2017

AUSTIN CAR WRECK LAWYER – PIP/UM-UIM OFFSETS

As an Austin car wreck lawyer I am often asked which insurance coverages apply in an auto accident. The answer varies based on the facts of the collision; however, three of the most common types of coverage available after an accident are:

  • Bodily Injury Liability Coverage,
  • Under-Insured/Uninsured Motorist Coverage (UM/UIM), and
  • Personal Injury Protection (PIP).

Bodily injury liability coverage may be recovered from the other driver when they injure you in an accident. In addition, UM/UIM and PIP coverages may be available on your own policy after a collision.  An Austin car wreck lawyer at Funk and Associates will know which coverages apply and how to maximize your recovery.

I want to primarily focus on the relationship between UM/UIM and PIP coverages in this article. Both of these coverages are required to be attached to an auto policy in Texas.  You may opt out by signing a written rejection form declining the coverage.

If you carry both coverages, you should be aware that these coverages may offset with each other in certain circumstances. One of our lawyers will be able to detail the specifics for you, but I will explain a brief example.

Suppose you are involved in a hit and run accident, where a driver crashed into your car and flees the scene. Assume they are never caught and you are injured; what do you do?

First, you call Funk and Associates right away! We will explain to you your options and discuss the insurance coverages available, such as uninsured motorist coverage and personal injury protection.

When used together, the Personal Injury Protection benefits may be subtracted from the total uninsured motorist recovery in some cases. This is known as an offset.

For example, if your Austin lawyer obtains a $10,000.00 settlement for your injuries on the above hit and run example under your UM coverage, and you have PIP, you may have an offset.

So, if your total Personal Injury Protection benefits total $2,500.00; and your total uninsured motorist recovery is $10,000.00; your total net recovery with the offset is $7,500.00 under your uninsured coverage (10,000 UM –  2,500 PIP). This is because $2,500.00 of the total $10,000.00 will come from PIP.

If you have been injured in a car accident, call Funk and Associates now! You need an lawyer that knows how to maximize your settlement and understands insurance.  The insurance company wants to confuse you and will do their best to short change you; Funk and Associates will fight for you.

Call an Austin car wreck lawyer at Funk and Associates today to understand your coverages and get tough with the insurance company.

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