Uninsured/Underinsured Motorist Claims: What to Do When the Other Driver Can't Pay

Uninsured motorist (UM) coverage pays when the at-fault driver has no insurance. Underinsured motorist (UIM) coverage applies when the other driver's policy limits are less than your damages.

UM/UIM coverage is required in some states and optional in others. It protects you when the responsible party cannot pay - an unfortunately common scenario given the number of uninsured drivers.

UM/UIM claims are filed against your own insurance company. While they are your insurer, they still try to minimize payouts. Having an attorney is often more important for these claims.

You may need to exhaust the at-fault driver's policy limits before accessing UIM coverage. Rules vary by state. Some policies have "stacking" that allows combining limits from multiple vehicles.

Beyond UM/UIM coverage, other options may exist: the vehicle owner (if different from driver), employers (if driver was working), government entities (if road defects contributed), or other negligent parties.

An attorney can identify all potential sources of compensation. Creative investigation sometimes reveals insurance coverage the at-fault driver did not know they had, or additional responsible parties.

Review your UM/UIM coverage now. The premium is typically affordable and provides crucial protection. Consider policy limits matching your liability coverage.

Keep comprehensive records of your coverage. After an accident is too late to increase limits. The small additional cost can mean the difference between full compensation and financial disaster.