Being injured in a car accident is bad enough. Learning that the driver who hit you has no insurance, or not enough insurance to cover your injuries, makes a terrible situation even worse. Unfortunately, this scenario is more common than many people realize. The Insurance Research Council estimates that approximately 13 percent of drivers nationwide are uninsured, and the percentage is even higher in some Southeastern states.

Understanding UM and UIM Coverage

Uninsured motorist (UM) coverage protects you when you are injured by a driver who carries no liability insurance at all, or by a hit-and-run driver who cannot be identified. Underinsured motorist (UIM) coverage protects you when the at-fault driver's insurance is not sufficient to cover your damages.

For example, if the at-fault driver has only $30,000 in liability coverage but your injuries are worth $150,000, UIM coverage on your own policy can make up the difference, up to your policy limits.

How UM/UIM Claims Work

Filing a UM or UIM claim involves making a claim against your own insurance policy rather than the at-fault driver's policy. While this might seem straightforward, it can actually be quite contentious. Your own insurance company, despite having collected your premiums for years, has a financial incentive to minimize the amount it pays on your UM/UIM claim.

The process typically involves the following steps:

  • File a claim with your own insurance company, providing notice of the accident and your intent to pursue UM/UIM benefits
  • Resolve or exhaust the at-fault driver's liability coverage (for UIM claims, you typically must first recover the full amount of the at-fault driver's coverage)
  • Submit documentation of your injuries and damages to your own insurer
  • Negotiate with your insurance company for a fair settlement
  • If negotiations fail, pursue arbitration or litigation as provided in your policy

Common Challenges in UM/UIM Claims

Insurance companies frequently raise the following challenges in UM/UIM claims: disputing the extent or severity of your injuries, arguing that your injuries are related to a pre-existing condition, claiming that the at-fault driver was not actually uninsured or underinsured, raising subrogation issues, attempting to offset workers' compensation or health insurance benefits, and contesting the amount of damages.

State-Specific Rules

UM/UIM rules vary significantly by state. North Carolina requires UM coverage on all auto policies and allows stacking in certain circumstances. South Carolina also requires UM coverage and has specific rules about the relationship between UM/UIM coverage and liability coverage. Georgia does not require UM coverage but allows drivers to purchase it. Understanding the specific rules in your state is essential to maximizing your recovery.

Do Not Accept Less Than You Deserve

Just because you are making a claim against your own insurance company does not mean you should accept less than your claim is worth. At Dr. Ted Injury Law, we have extensive experience handling UM/UIM claims and know how to negotiate with insurance companies to obtain fair compensation. Contact us at (800) 555-HURT for a free consultation.