What Happens When I am in an Accident With an Uninsured or Underinsured Motorist?

As a personal injury attorney, I’ve seen firsthand the challenges that arise when accidents involve uninsured or underinsured motorists. These situations can leave victims facing significant financial burdens, especially when damages exceed the at-fault driver’s policy limits. In this post, I’ll discuss what drivers should know about accidents with uninsured or underinsured motorists, the claims process, and options available when damages surpass policy limits.

Understanding Uninsured and Underinsured Motorist Coverage

Before delving into the claims process, it’s crucial to understand the difference between uninsured and underinsured motorist coverage:

Uninsured Motorist (UM) Coverage: This protects you if you’re in an accident with a driver who has no insurance at all.

Underinsured Motorist (UIM) Coverage: This applies when the at-fault driver has insurance, but their policy limits are insufficient to cover your damages.

Many states require drivers to carry UM/UIM coverage, while in others, it’s optional. Regardless, I strongly recommend all drivers include this coverage in their policies as a crucial safeguard.

The Claims Process for Uninsured/Underinsured Motorist Accidents

When you’re involved in an accident with an uninsured or underinsured motorist, the claims process can be more complex than a typical accident claim. Here’s a general overview:

1. Report the accident: Notify your insurance company immediately after the accident, providing all relevant details.

2. Investigate the other driver’s insurance status: Your insurer will verify whether the at-fault driver is indeed uninsured or underinsured.

3. File a UM/UIM claim: If applicable, you’ll need to file a claim with your own insurance company under your UM/UIM coverage.

4. Provide documentation: Submit all necessary documentation, including medical bills, lost wage information, and evidence of property damage.

5. Negotiate with your insurer: Your insurance company will review your claim and may make a settlement offer. Be prepared to negotiate to ensure fair compensation.

6. Consider legal action: If a fair settlement can’t be reached, you may need to consider arbitration or filing a lawsuit against your own insurance company.

It’s important to note that the process can vary depending on your state’s laws and your specific insurance policy. Always review your policy carefully and consult with a personal injury attorney if you have any questions or concerns.

When Damages Exceed Policy Limits

One of the most challenging scenarios occurs when your damages exceed the at-fault driver’s policy limits. This situation is more common than you might think, especially in cases involving severe injuries or fatalities. Here are some options to consider:

1. Utilize Your Own UIM Coverage

If your damages exceed the at-fault driver’s policy limits, your first recourse is typically your own underinsured motorist coverage¹. This coverage is designed to bridge the gap between the at-fault driver’s policy limits and your actual damages, up to your UIM policy limit.

2. Pursue a Personal Asset Claim

In some cases, it may be possible to pursue the at-fault driver’s personal assets. However, this option is often challenging and may not be fruitful if the driver lacks significant assets². It’s crucial to consult with an experienced attorney to determine if this approach is viable and worth pursuing.

3. Explore Multiple Insurance Policies

Sometimes, there may be multiple insurance policies that can provide coverage. For instance, if the at-fault driver was working at the time of the accident, their employer’s insurance might come into play. Similarly, if the driver was in a borrowed vehicle, the vehicle owner’s policy might provide additional coverage³.

4. Investigate Potential Third-Party Liability

In some accidents, parties other than the driver may share liability. For example, in a truck accident, the trucking company might be held responsible. In cases involving defective vehicle parts, the manufacturer could be liable. Exploring all potential sources of liability can increase your chances of full compensation.

5. Negotiate Policy Limit Settlements

In cases where damages clearly exceed policy limits, it may be possible to negotiate a policy limit settlement with the at-fault driver’s insurance company. This approach can sometimes be combined with a claim against your own UIM coverage to maximize your total compensation.

The Importance of Legal Representation

Navigating claims involving uninsured or underinsured motorists, especially when damages exceed policy limits, can be incredibly complex. An experienced personal injury attorney can provide invaluable assistance by⁴:

• Thoroughly investigating the accident and all potential sources of compensation
• Accurately calculating the full extent of your damages, including future medical expenses and lost earnings
• Negotiating skillfully with insurance companies to maximize your settlement
• Representing you in court if a fair settlement cannot be reached
• Ensuring all legal deadlines are met and proper procedures are followed

Preventive Measures for Drivers

While you can’t control whether other drivers carry adequate insurance, you can take steps to protect yourself:

1. Carry adequate UM/UIM coverage: Consider purchasing more than the minimum required coverage.

2. Consider an umbrella policy: This can provide additional liability coverage beyond your auto policy limits.

3. Understand your policy: Familiarize yourself with your coverage limits and what your policy does and doesn’t cover.

4. Keep thorough records: In the event of an accident, detailed documentation can strengthen your claim.

Accidents involving uninsured or underinsured motorists can be financially devastating, especially when damages exceed policy limits. By understanding your options and seeking professional legal guidance, you can navigate these challenging situations more effectively and increase your chances of receiving fair compensation for your injuries and losses.

Remember, every accident is unique, and the best course of action can vary depending on the specific circumstances of your case. If you find yourself in this situation, don’t hesitate to seek the advice of a qualified personal injury attorney who can guide you through the process and advocate for your rights.

1. https://www.morrisbart.com/faqs/how-often-do-auto-accident-settlements-exceed-the-policy-limits/ ↩︎
2. https://www.farrin.com/blog/insurance-policy-limits-only-covered-part-of-my-damages-now-what/ ↩︎
3. https://www.drakeinjurylawyers.com/what-happens-when-car-accident-claim-exceeds-insurance-limits/ ↩︎
4. https://petrarcalaw.com/car-accident-claim-exceeds-insurance-limits/ ↩︎