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Car accidents are stressful and overwhelming, but the situation becomes even more complicated when the at-fault driver is underinsured . This means they have insurance, but not enough to cover the full extent of your damages. If you’ve been seriously injured in a crash caused by an underinsured driver, you may find yourself in a financial nightmare—staring at medical bills, lost wages, and vehicle repair costs that far exceed the responsible driver’s insurance limits.
So, what do you do when the damage they’ve caused is more than the coverage they have? How do you make up the rest? The answer isn’t always simple, but a combination of insurance claims, legal strategies, financial negotiation and the help of an experienced Walner Law attorney can help you get the compensation you need.
Understanding Underinsured Motorist Coverage
First, let’s clarify what underinsured motorist (UIM) coverage is. UIM is designed to protect you when the at-fault driver’s insurance isn’t enough to compensate you fully for your injuries and damages. Ideally, you carry UIM coverage as part of your own policy, which can make a massive difference in these situations. However, even if you have it, insurance companies don’t hand over benefits easily. Many insurers will push back, delay, or deny valid claims, which is why having an experienced personal injury attorney is crucial. They can fight to see that you get every dollar you’re owed from your insurance policy.
UIM vs. UM Coverage: What’s the Difference?
Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage are often bundled together in auto insurance policies, but they serve different purposes.
- Uninsured Motorist (UM) Coverage: This kicks in when you are in an accident caused by a driver without insurance. If an uninsured driver hits you, your UM coverage will pay for medical expenses, lost wages, and other damages up to the limits of your policy.
- Underinsured Motorist (UIM) Coverage: This applies when the at-fault driver has some insurance but not enough to cover your full damages. UIM helps bridge the gap between their policy limits and your actual expenses.
Both types of coverage are essential for protecting yourself against financially irresponsible drivers. While UM coverage is critical when dealing with entirely uninsured motorists, UIM coverage makes sure you’re not left paying out of pocket when the at-fault driver’s insurance falls short.
What to Do If An Uninsured Motorist hits you
Being in an accident with an uninsured motorist presents unique challenges. Recovering compensation may be difficult without an insurance policy against which to file a claim. However, there are steps you can take to protect yourself:
File a Police Report: Always report the accident to the authorities. A police report serves as crucial evidence when filing a claim.
Gather Evidence: Take photos, collect witness statements, and document everything at the accident scene.
Notify Your Insurance Company: If you have uninsured motorist (UM) coverage, you must file a claim with your insurer. Be prepared for resistance, as insurance companies often attempt to minimize payouts.
Consult an Attorney: A lawyer can help make sure your UM claim is handled properly and that your insurance company pays out in accordance with your policy. They may also explore other sources of compensation to get you the amount you deserve.
While UIM coverage helps when a driver doesn’t have enough insurance, UM coverage is your financial safety net if the at-fault driver has none. Ensuring you carry sufficient UM coverage can prevent severe financial hardship.
Pursuing a Claim Against the Underinsured Driver’s Policy
Your first step after an accident with an underinsured driver is to file a claim against their insurance. Let’s say their policy limit is $50,000. Still, your total damages—including medical expenses, lost wages, and pain and suffering—amount to $100,000. Once their insurer pays out the $50,000 (assuming they accept full liability), you’re left with a $50,000 gap.
At this stage, your attorney may investigate whether the at-fault driver has any personal assets that can be pursued. However, in most cases, underinsured drivers don’t have substantial assets, which is why they carry minimal insurance in the first place. Even if you were to win a judgment against them in court, collecting on that judgment may be difficult. This is why turning to your own underinsured motorist coverage is often the most effective way to recover additional compensation.
Filing an Underinsured Motorist (UIM) Claim with Your Own Insurer
If you have UIM coverage, you can file a claim with your own insurance company to make up the difference. In our example, your insurer would be responsible for covering the remaining $50,000 up to the limits of your UIM policy. However, just because you’ve been paying premiums for this coverage doesn’t mean your insurance company will willingly hand over the money. Insurers frequently attempt to minimize payouts, offering far less than needed or even denying claims outright.
This is where having a lawyer becomes essential. Your attorney will gather medical records, accident reports, and expert testimonies to prove why your UIM benefits should be paid in full. They can also handle negotiations with your insurer, preventing them from lowballing you or delaying payment indefinitely.
Other Potential Sources of Compensation
Sometimes, recovering full compensation requires looking beyond the at-fault driver’s insurance and your UIM coverage. Your attorney may explore additional avenues for liability, such as:
Third-Party Liability: Was a third party partially responsible for the accident? If the at-fault driver was working during the crash, their employer might share liability. A product liability claim against the manufacturer might be possible if a defective vehicle component contributed to the accident.
Umbrella Policies: Some individuals carry umbrella insurance policies that provide additional coverage beyond their auto insurance. Your lawyer can investigate whether the at-fault driver has an umbrella policy that could be tapped for further compensation.
Government Entities: If poor road conditions or a malfunctioning traffic signal played a role in the accident, a claim against a government entity may be an option. These cases are complex and subject to strict deadlines, making legal guidance essential.
Negotiating Medical Bills and Liens
Even with multiple sources of compensation, you may still find yourself coming up short. Medical bills alone can quickly eat up a settlement, leaving little for lost wages and other expenses. Fortunately, an experienced lawyer can negotiate with hospitals and medical providers to reduce your outstanding bills.
Hospitals and doctors often accept reduced payments if they know the patient is receiving a limited settlement. Your attorney may also work with health insurance providers or medical lien holders to negotiate lower repayment amounts, ensuring you walk away with a more significant portion of your settlement.
How Underinsured Motorist Claims Are Handled in Different States
Underinsured motorist claims can vary significantly depending on the state where the accident occurred. Some key differences include:
Stacking Policies: Some states allow policyholders to “stack” UIM benefits if multiple vehicles are insured under the same policy. This means you could increase your UIM coverage limits by combining benefits from multiple cars on your policy.
Mandatory vs. Optional Coverage: Certain states require drivers to carry UIM coverage, while others make it optional. If you live in a state where it’s not required, it’s still highly recommended to have this protection.
Different Claim Procedures: Each state has its own rules on how UIM claims must be handled. Some states require arbitration before filing a lawsuit against your insurer, while others allow direct legal action.
Understanding your state’s laws can help you handle the claims process more effectively and avoid unnecessary delays.
What If You Didn’t Carry UIM Coverage?
Hopefully, you have UIM coverage in place, but if you waive it when purchasing your policy, your options become more limited. In this scenario, an attorney is critical. They can investigate every possible source of recovery, negotiate down medical expenses, and ensure that you aren’t taken advantage of by insurance companies. Many people don’t realize how many ways a lawyer can help until they’re in the middle of a claim and facing resistance from insurers, hospitals, and opposing legal teams. Recovering full compensation becomes more challenging but not impossible. Some potential options include:
Personal Health Insurance: Your health insurance may cover some of your medical expenses. However, you may still be responsible for deductibles and copays.
MedPay or PIP Coverage: If you have medical payments (MedPay) or personal injury protection (PIP) coverage as part of your auto insurance, these policies can help cover medical expenses regardless of fault.
Suing the At-Fault Driver: If the underinsured driver has personal assets, your attorney may sue to recover the remaining damages. However, this is only effective if the driver has sufficient wealth to pay a judgment.
Negotiating Medical Bills: Without adequate insurance coverage, negotiating directly with hospitals and doctors to lower your medical bills can be a crucial strategy.
The Importance of Acting Quickly
Time is critical after an accident with an underinsured driver. Evidence can disappear, witnesses’ memories fade, and insurance companies often impose strict deadlines for filing claims. If you wait too long to act, you could lose your ability to recover compensation altogether. This is why seeking legal advice early in the process is so important.
How UM and UIM Coverage Apply to Hit-and-Run Accidents and Rideshares
Hit-and-Run Accidents:
In hit-and-run accidents, where the at-fault driver flees the scene, both Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage can provide protection, depending on the circumstances.
Uninsured Motorist (UM) Coverage for Hit-and-Runs: If the at-fault driver cannot be found, your UM coverage can cover medical expenses, lost wages, and property damage up to your policy’s limits. Since the responsible driver is considered “uninsured” in a hit-and-run scenario, UM coverage is the primary form of protection. It’s important to note that, in most states, UM coverage applies if the hit-and-run driver’s identity is unknown. However, you must report the accident to the police and try to identify the driver.
Underinsured Motorist (UIM) Coverage for Hit-and-Runs: UIM coverage is typically not applicable in hit-and-run cases, as it’s meant for situations where the at-fault driver has some insurance, but not enough to cover your full damages.
Rideshare Accidents (Uber, Lyft, etc.):
Accidents involving rideshare vehicles are more complicated. However, UM and UIM coverage can still play a key role, depending on whether the rideshare driver is at fault and whether they have insurance.
- UM and UIM Coverage When Riding in a Rideshare: If you’re a passenger in a rideshare vehicle involved in an accident caused by another driver, UM or UIM coverage may be available if the at-fault driver is uninsured or underinsured.
- UM and UIM Coverage When the Rideshare Driver is at Fault: If the rideshare driver is at fault and doesn’t have enough insurance, the rideshare company’s insurance may come into play. Many rideshare companies (Uber, Lyft, etc.) provide liability insurance for their drivers, which covers specific scenarios. However, personal auto insurance would be the primary coverage if the driver is not logged in or engaged in a ride.
For more comprehensive protection, passengers and drivers in rideshare vehicles should make sure they carry both UM and UIM coverage, as it can help fill gaps where insurance from the rideshare company or the at-fault driver falls short.
Protecting Yourself in the Future
If you’re currently dealing with an accident involving an underinsured driver, the best thing you can do is seek legal representation immediately. A knowledgeable attorney can identify all possible avenues for compensation, fight for your UIM benefits, and work to reduce your financial burden.
Moving forward, consider reviewing your auto insurance policy to see that you have adequate UIM coverage. Many drivers underestimate the importance of this protection until they find themselves in a situation like this. Strong UIM coverage can mean the difference between financial devastation and a full recovery after an accident.
No one expects to be hit by an underinsured driver, but it happens every day. By understanding your rights and taking proactive steps, you can protect yourself and your family from the financial consequences of another driver’s insufficient coverage. And if you’re already facing this challenge, know that you don’t have to go through it alone—an experienced lawyer can make all the difference in securing the compensation you deserve.
Contact Walner Law today to start your recovery journey and get the justice you deserve – conveniently located in three cities and states.
Chicago – (312) 410-8496
Phoenix, Arizona – (480) 508-8800
Milwaukee, Wisconsin – (414) 800-0000
