When the At-Fault Driver Has No Insurance
About 12–14% of American drivers are uninsured at any given time, and many more carry state-minimum liability limits that barely cover a minor fender-bender. If you're seriously injured in a crash caused by one of these drivers, your own uninsured motorist (UM) or underinsured motorist (UIM) coverage may be the only meaningful source of compensation available to you.
Understanding UM vs. UIM Coverage
Uninsured motorist (UM) coverage pays when the at-fault driver carries no liability insurance at all — or when you're a victim of a hit-and-run with no identified driver.
Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance but their policy limits are too low to fully compensate your damages. For example, if you suffer $150,000 in injuries and the at-fault driver only carries $25,000 in liability coverage, your UIM policy can cover the gap (up to your UIM limit).
What UM/UIM Coverage Pays For
- Medical expenses and future medical costs
- Lost wages and loss of future earning capacity
- Pain and suffering
- Permanent disability or disfigurement
- Wrongful death damages for surviving family members
How to File a UM/UIM Claim
You file against your own insurer, but that does not mean they will pay without a fight. The claims process typically works as follows:
- Report the accident to your insurer promptly — most policies require timely notice as a condition of coverage.
- Document the at-fault driver's insurance status — obtain the police report, run a verification through your state's motor vehicle database if possible, or secure the other driver's insurer's denial of coverage.
- Gather medical records and bills, lost wage documentation, and any other evidence of damages.
- Submit a demand package to your insurer outlining your injuries, treatment, and the compensation you're seeking.
- Negotiate — your insurer will often make an initial low offer. UM/UIM negotiations look a lot like a standard third-party claim.
Why Your Own Insurer May Fight You
Even though UM/UIM coverage exists to protect you, insurers routinely challenge these claims. Common tactics include:
- Disputing the severity of your injuries
- Arguing your medical treatment was excessive or unrelated to the crash
- Claiming the other driver actually had insurance
- Offering low settlements before you've completed treatment
- Requesting recorded statements designed to limit your claim
Because you're dealing with your own insurer, there is also a bad faith angle: your insurer owes you a duty of good faith and fair dealing, and unreasonable delay or denial of a valid UM/UIM claim can give rise to bad faith liability.
Stacking UM/UIM Coverage
If you have multiple vehicles insured under the same policy — or separate policies — some states allow you to "stack" UM/UIM limits, multiplying the available coverage. For example, if you have three cars each with $50,000 UM coverage, stacked coverage could give you up to $150,000. Stacking rules vary significantly by state.
The Hit-and-Run Situation
Most UM policies cover hit-and-run accidents, but they often require physical contact between your vehicle and the unidentified vehicle. Some states have eliminated this requirement; others strictly enforce it. If there was no contact but witnesses can corroborate the other vehicle's involvement, you may still have options.
When to Consult an Attorney
If your UM/UIM insurer is disputing liability, disputing the value of your claim, or has offered far less than your documented damages, an attorney experienced in insurance claims can help. Many handle UM/UIM cases on contingency, and having legal representation tends to result in significantly higher settlements. A free case review is a low-risk way to find out what your claim may be worth.
Discuss your case with Yates Anderson
Yates Anderson represents clients in Alabama, Florida, and beyond. Our attorneys handle complex disputes with the rigor of a national firm and the agility of a boutique. Request a case evaluation and an attorney will respond within one business day.
Frequently asked questions
Do I have to sue my own insurance company to collect UM/UIM benefits?
Not necessarily. Many UM/UIM claims settle through negotiation. If your insurer refuses to pay a fair amount, you may need to file a claim in arbitration (if your policy requires it) or in court.
Will filing a UM/UIM claim raise my insurance rates?
It depends on your state and insurer. Many states prohibit rate increases for UM/UIM claims where you were not at fault. Review your policy or ask your agent — and weigh any potential rate impact against the compensation you deserve.
What if the other driver fled the scene and I have no contact information?
Hit-and-run accidents are typically covered under UM policies. Most policies require that you report the accident to police promptly. Some policies also require physical contact with the unidentified vehicle, so check your specific policy language.
Can I collect UIM benefits even if I already received the at-fault driver's policy limits?
Yes — UIM coverage kicks in when the at-fault driver's limits are exhausted and your damages exceed them. You typically must exhaust (or consent to exhaustion of) the at-fault driver's policy before triggering your UIM coverage.