This article is for general informational and educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Laws vary by state and change over time. For your specific situation, consult a licensed attorney in your jurisdiction.
Getting hit by a driver who has no insurance — or not enough coverage to pay for your injuries — is one of the more frustrating situations an accident victim can face. Fortunately, most drivers have options they don’t realize they have. Here’s how uninsured and underinsured motorist claims work.
What Is Uninsured/Underinsured Motorist (UM/UIM) Coverage?
UM/UIM coverage is an optional (in most states) add-on to your own auto insurance policy that pays out when the at-fault driver either has no insurance at all, or doesn’t carry enough coverage to fully compensate your damages. It essentially lets your own insurer step into the at-fault driver’s shoes for compensation purposes, up to your policy’s limits.
Why This Coverage Matters More Than People Expect
- A meaningful percentage of drivers on the road carry no insurance at all, varying widely by state
- Many drivers carry only state-minimum liability limits, which can be far below the cost of a serious injury
- Without UM/UIM coverage, an injured driver may have no practical way to recover compensation beyond suing the at-fault driver personally — often not worthwhile if that driver has few assets
How a UM/UIM Claim Works
- Confirm the at-fault driver’s insurance status (or lack of coverage) through the police report or your own insurer
- File a UM/UIM claim with your own insurance company
- Your insurer investigates the claim much like a standard liability claim
- Negotiation over the settlement amount, up to your policy’s UM/UIM limits
- If your insurer disputes the claim or offers too little, the policy may allow for arbitration or a lawsuit against your own insurer
A Complication Worth Knowing: Your Insurer Isn’t Neutral
Even though you’re filing against your own policy, your insurance company still has a financial interest in minimizing what it pays out. This surprises many people, who assume their own insurer will simply “do the right thing.” An injury attorney experienced with UM/UIM claims can help push back against a lowball offer from your own carrier.
Frequently Asked Questions
Do I need UM/UIM coverage if I already have health insurance?
Health insurance typically covers only medical costs, not lost wages, pain and suffering, or other damages a liability claim would cover.
What if the at-fault driver fled the scene (hit and run)?
UM coverage often applies to hit-and-run accidents as well, though specific policy terms and state rules vary.
Will filing a UM/UIM claim raise my insurance rates?
Rules on this vary by state and insurer; some states restrict insurers from raising rates for no-fault UM/UIM claims. Ask your insurer or an attorney directly.
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Final Thoughts
An uninsured or underinsured driver doesn’t have to mean an uncompensated injury. Reviewing your own policy for UM/UIM coverage — and consulting an attorney if your own insurer undervalues the claim — are the key steps to protecting your recovery.
This article is for general informational and educational purposes only and does not constitute legal advice. Reading or sharing this article does not create an attorney-client relationship between you and duocorner.com, its contributors, or any affiliated party. Laws and procedures vary substantially by state and change frequently. For advice about your specific circumstances, consult a licensed attorney in the state where the relevant events occurred.