What Is Uninsured and Underinsured Motorist Coverage?

Uninsured motorist coverage is the part of your own auto policy that pays your injury claim when the driver who hit you has no insurance. Underinsured motorist coverage pays when that driver has insurance, but not enough to cover your losses. Together they are usually abbreviated UM and UIM, and in a serious crash they are often the only reason a badly injured person is compensated at all. Most people have the coverage and do not know how it works, which is a problem, because claiming it means filing a claim against your own insurance company and following its rules exactly.

What uninsured motorist coverage pays for

UM coverage steps into the shoes of the missing liability policy. If an uninsured driver causes a crash, you make a claim under your own policy for the same categories of damages you would have claimed from the at-fault driver: medical expenses, lost wages, and pain and suffering, up to your UM limit. You still have to prove the other driver was at fault and that the crash caused your injuries. Your insurer can raise every defense the uninsured driver could have raised, including contributory negligence in Virginia and DC.

UM coverage also applies to hit-and-run crashes where the driver is never identified, sometimes called phantom vehicle claims. These carry an extra condition: nearly every policy, and Virginia law in particular, requires that the crash be reported to the police promptly. Some policies also require physical contact between the vehicles or independent corroboration that the phantom vehicle existed. If you were run off the road by a driver who never stopped, report it the same day.

What underinsured motorist coverage pays for

UIM coverage applies when the at-fault driver’s liability limit is lower than your damages. A driver carrying only the state minimum who causes a spinal injury will exhaust that policy quickly. Your UIM coverage then pays the difference, subject to how your policy calculates it. In some policies and jurisdictions, your UIM limit is reduced by the amount the at-fault driver’s insurer paid; in others, it sits on top of that payment. The difference can be large, and it depends on the policy language and the state law that governs the policy. Our car and truck accident attorneys read the declarations page and the policy form before advising a client how much coverage is really available.

Virginia, DC, and New York each require insurers to include uninsured motorist coverage in auto policies in some form. Underinsured coverage is handled differently in each: New York, for example, treats it as supplementary coverage that the insurer must offer and the policyholder can decline or increase. Check your declarations page now rather than after a crash.

How to make a UM or UIM claim without losing it

Because the claim is against your own insurer, the policy’s conditions are the rules of the game.

• Give prompt notice of the accident and of your intent to claim UM or UIM benefits.
• Report hit-and-run crashes to police immediately and keep the report number.
• Before accepting any settlement from the at-fault driver’s insurer, notify your UIM carrier in writing and obtain its consent; settling without consent can forfeit UIM coverage because it destroys the insurer’s right to recover from the at-fault driver.
• Cooperate with reasonable requests for records and an examination under oath, but get advice first, because your insurer is now an adverse party.

Disputes over UM and UIM claims are resolved either by arbitration or by lawsuit, depending on the policy and the state. In Virginia, the typical route is a lawsuit against the at-fault driver with your own UM carrier served and participating. In New York, SUM claims are usually arbitrated. The procedure matters for deadlines and for what evidence can be presented.

Who is covered, and when the car is not yours

UM and UIM coverage follows people as well as vehicles. The named insured and resident relatives are generally covered while occupying any vehicle, and frequently while walking or cycling as well. A pedestrian struck by an uninsured driver can often claim under the auto policy of a parent or spouse they live with. Passengers in an insured car are usually covered under that car’s policy, and may also have their own. When one person’s claim exhausts a policy, other applicable policies may be stacked or reached in sequence, depending on the state. Our pedestrian and bicycle accident page addresses the pedestrian scenario in more detail.

Why your limits matter before a crash

The UM and UIM limits on your policy define the maximum you can recover when the other driver has too little coverage. Many people carry the minimum because it was the cheapest option when they bought the policy. Raising those limits is usually inexpensive relative to the protection it buys, and it is the only part of a stranger’s negligence that you control in advance. Our post on how a car accident insurance claim works shows where UM and UIM fit in the broader sequence.

If you have been hit by an uninsured or underinsured driver, a consultation with Capitol Law Partners can read your policy and map out how to claim the coverage without forfeiting it. Schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication.

Attorney Sena Sahin. Clear advice for individuals, families, and business owners.

Need help with this topic? See our car accident and UM/UIM claims page or schedule a consultation.