Uninsured and underinsured motorist coverage can make all the difference after a crash. Car accidents are overwhelming; they can turn your life upside down in seconds, leaving you with mounting medical bills, missed time from work, and the stress of recovery. But what happens when the driver who hit you has no insurance, or not nearly enough? That’s where uninsured motorist (UM) and underinsured motorist (UIM) coverage step in.
At the Mike Slocumb Law Firm, we help injury victims navigate these complex claims every day. Below, you’ll learn what UM and UIM coverage really mean, how to calculate the value of your claim, and why getting legal help early makes all the difference.
Key Takeaways
- Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance.
- Underinsured motorist (UIM) coverage applies when the other driver’s policy limits are too low to cover your losses.
- Your claim’s value depends on both economic losses (like medical bills and lost wages) and non-economic losses (like pain and suffering).
- State laws matter. Some states allow stacking coverage across vehicles or policies, while others limit the amount of coverage that can be stacked.
- Working with an attorney helps uncover hidden coverages and maximize your recovery.
What is Uninsured and Underinsured Motorist Coverage?
Think of UM and UIM coverage as a safety net. When another driver fails to carry enough insurance, or any at all, your own policy may step in to protect you.
- Uninsured Motorist (UM): Provides compensation when the at-fault driver has no liability insurance.
- Underinsured Motorist (UIM): Bridges the gap when the at-fault driver’s coverage doesn’t fully pay for your injuries and losses.
These coverages may apply not only to you as the policyholder, but also to family members living in your household, passengers in your vehicle, and sometimes even when you’re a pedestrian or cyclist.
According to the Insurance Research Council, nearly 1 in 8 drivers in the U.S. is uninsured. This makes UM/UIM coverage critical for anyone on the road. Some states, such as Florida and Mississippi, consistently rank among the highest for uninsured drivers, making coverage even more crucial in those regions.
uninsured and underinsured motorist (UM/UIM) coverage works
How to Calculate a UM or UIM Claim
Putting a fair dollar amount on your claim involves more than just adding up medical bills. Here’s how the process works:
- Check the at-fault driver’s policy. Are they uninsured or simply underinsured? What are their liability limits?
- Add up your economic damages. This includes medical bills, rehab costs, lost income, and any out-of-pocket expenses.
- Factor in non-economic damages. Pain, suffering, emotional distress, and loss of quality of life are all real losses.
- Apply policy rules. Your recovery may be reduced by setoffs or capped by your own UM/UIM limits. Some states allow “stacking” of multiple policies.
Example: Suppose your total damages are $150,000. The at-fault driver only has $25,000 in coverage. If your UIM policy covers $100,000 and your state uses “gap” coverage, you could still claim $100,000 from your insurer. But if your state uses “reduction” coverage, your recovery might be limited to $75,000.
Why calculation matters
Insurance companies often undervalue claims, especially non-economic damages like long-term pain or emotional trauma. Industry studies show that claimants represented by attorneys usually recover significantly more than those who file alone. This is because an experienced attorney can accurately document damages, effectively highlight future care costs, and counter insurance company formulas designed to minimize payouts.
What the Claim Process Looks Like
Filing a UM or UIM claim can feel like fighting a battle on two fronts: against the at-fault driver’s insurer and your own. Here’s a typical path:
- Right after the crash: Get medical help, notify your insurer, and keep copies of all reports and bills.
- Coverage investigation: Your attorney checks the at-fault driver’s insurance and your UM/UIM policy language.
- Proving damages: Medical records, wage statements, and even a recovery journal can support your case.
- Settlement demand: Your lawyer prepares a demand package outlining liability, damages, and your claim value.
- Resolution: This may involve negotiation, arbitration, or even a lawsuit against your own insurer.
According to the National Highway Traffic Safety Administration (NHTSA), the annual economic costs of motor vehicle crashes exceed $340 billion, making insurance coverage a crucial safeguard.
Timelines and expectations
Every claim is unique, but UM and UIM claims often take longer to resolve than standard liability claims. This is because your insurer may wait until the at-fault driver’s policy limits are exhausted before negotiating your UIM claim. In some cases, arbitration or trial may be necessary if your insurer disputes damages.
How State Laws Impact Your Claim
Every state sets its own rules for Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. Some require insurers to offer it, while others make it optional. In some states, UM/UIM fills the “gap” between your damages and what the other driver’s insurer pays. In others, the payout is reduced by the other driver’s coverage. Rules on stacking multiple policies also differ.
Because these laws vary so widely, working with a local attorney is essential. At Mike Slocumb Law Firm, we stay current with state-specific rules to ensure your claim strategy is always up to date.
State-by-State Differences
- Alabama (Auburn, Mobile, Birmingham – Downtown & Blue Lake): Alabama law requires auto insurers to offer UM coverage, but drivers can reject it in writing. Stacking UM coverage may be available depending on the number of insured vehicles.
- District of Columbia (Washington, D.C. offices – I Street & 19th Street): D.C. mandates insurers offer UM coverage at least equal to minimum liability limits. Drivers may opt for higher limits for added protection.
- Georgia (Johns Creek): Insurers must offer UM/UIM, but drivers can reject it in writing. Georgia allows “add-on” UM coverage, which pays in addition to the at-fault driver’s policy, as well as “reduced-by” coverage, which offsets the other driver’s limits.
- Maryland (Baltimore): UM/UIM is required in all auto policies. Maryland also offers Enhanced Underinsured Motorist (EUM) coverage, which provides stronger protection than traditional underinsured motorist coverage.
- Mississippi (Jackson – E Capitol St. & Capitol St., Gulfport): UM coverage is mandatory unless waived in writing. Policyholders may stack UM coverage across multiple vehicles in certain situations.
- West Virginia (Charleston): UM/UIM is mandatory. State law also permits stacking of UM/UIM coverage, providing additional protection for accident victims.
- Texas (Dallas & Houston): UM/UIM coverage must be offered, but drivers can reject it in writing. Texas follows a “gap” approach, where UM/UIM fills the difference between your damages and what the other driver’s policy covers.
- Louisiana (New Orleans): UM coverage is required unless rejected in writing. Louisiana law presumes drivers want UM coverage equal to their liability limits unless they specifically reject it.
- Illinois (Chicago): UM coverage is mandatory in Illinois, and UIM must be offered. Coverage applies up to policy limits when the at-fault driver has no insurance or inadequate coverage.
This is why working with a local attorney is so essential. At Mike Slocumb Law Firm, we stay current with state-specific rules, ensuring your claim strategy is always up to date.
Common Challenges With UM and UIM Claims
Even when you’re dealing with your own insurer, UM and UIM claims can be difficult. Some of the most common obstacles include:
- Strict notice deadlines
- Gaps in medical treatment
- Policy exclusions or offsets
- Disputes about who was at fault
- Lowball settlement offers that undervalue your long-term needs
Real-world example
A client was struck by an uninsured driver while commuting to work. Her medical bills exceeded $85,000. The insurer initially offered just $20,000, arguing her treatment was “excessive.” With thorough documentation and legal advocacy, the case ultimately resolved for the full UM policy limits, ensuring she could continue treatment and avoid financial ruin.
Tips for a Stronger Claim
- Get prompt, consistent medical treatment and follow the doctor’s orders.
- Keep a journal of how your injuries affect your daily life.
- Save receipts, medical bills, and correspondence with insurers.
- Review your policy with an attorney to uncover stacking opportunities.
- Don’t settle the at-fault driver’s claim until you understand how it affects your UIM rights.
For more on crash statistics and injury costs, see the CDC’s Motor Vehicle Safety resources.
Frequently Asked Questions
What’s the difference between UM and UIM?
UM applies when the at-fault driver has no insurance. UIM applies when their insurance is not enough to cover your damages.
Does UM/UIM cover property damage?
Some policies include it, but many require collision coverage for vehicle repairs. Always check your declarations page.
Can I stack UM or UIM coverage?
It depends on your state and the language of your policy. Some allow stacking, others prohibit it.
Do I have to sue my own insurer?
If your insurer disputes liability or damages, your policy may require you to undergo arbitration or file a lawsuit.
What deadlines apply to UM/UIM claims?
It varies by state and by policy. Missing a deadline can result in the loss of your claim.
What if the at-fault driver fled the scene?
UM often applies in hit-and-run cases, but you must report the incident quickly and provide proof that a vehicle was involved in the crash.
How much UM/UIM coverage should I buy?
Experts recommend carrying limits equal to your liability coverage. For example, if you have $100,000 in liability coverage, you should match it with $100,000 in UM/UIM coverage. This ensures you’re protected to the same level you protect others.
Why Choose Mike Slocumb Law Firm
Insurance companies have lawyers protecting their bottom line. You deserve a legal team protecting you. At the Mike Slocumb Law Firm, we bring:
- Big-firm resources with local, personalized care
- No fee unless we win your case
- Proven results in serious accident claims
Ready to Protect Your Rights?
Don’t wait and hope the insurance company does the right thing. Talk with a lawyer who knows how to handle uninsured and underinsured motorist claims. Your consultation is free, and there’s no fee unless we win.
Disclaimer: This article is for informational purposes only and does not create an attorney-client relationship. Laws and insurance terms change. Always review your policy and consult an attorney in your jurisdiction to ensure you understand its terms and implications.