Uninsured Motorist Coverage: Why You Need It and How to File a Claim

Introduction

Imagine this scenario: You are driving responsibly when another vehicle runs a red light and crashes into you. Your car is totaled, and you have significant injuries. You exchange information, only to discover the other driver has no insurance. Or worse, it was a hit-and-run, and the driver fled the scene.

In the United States, roughly one in eight drivers is uninsured. In some states, that number is as high as 20%. This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage becomes a financial lifesaver. This guide explains why this coverage is essential and how to navigate the claim process when the at-fault driver cannot pay.

1. What is Uninsured Motorist (UM) Coverage?

Uninsured Motorist Bodily Injury (UMBI) coverage pays for your medical bills, lost wages, and pain and suffering if you are hit by a driver who does not have liability insurance. It also typically covers you and your passengers if you are victims of a hit-and-run accident.

Without UM coverage, you would be forced to pay for your own medical treatment out of pocket or rely on health insurance (which may have high deductibles and does not cover lost wages or pain and suffering).

2. The Difference Between UM and UIM

While often bundled together, they serve different purposes:

• Uninsured Motorist (UM): Protects you when the at-fault driver has zero insurance.
• Underinsured Motorist (UIM): Protects you when the at-fault driver has insurance, but their policy limits are too low to cover your total damages.

Example of UIM: You have $100,000 in medical bills. The at-fault driver only has the state minimum liability of $25,000. Their insurance pays you $25,000. If you have UIM coverage, your own policy can step in to cover the remaining $75,000 (up to your policy limits).

3. Is UM/UIM Coverage Mandatory?

It depends on your state. Some states (like New York, Illinois, and Maryland) require drivers to carry UM coverage by law. Other states make it optional, but insurance agents must offer it to you in writing, and you must sign a waiver to reject it.

Legal Advice: Even if it is not mandatory in your state, legal experts strongly recommend carrying substantial UM/UIM limits (e.g., $100,000/$300,000). It is relatively inexpensive compared to the financial ruin of a serious crash with an uninsured driver.

4. How to File a UM/UIM Claim

Filing a UM claim is different from a standard liability claim because you are negotiating with your own insurance company, not the other driver’s. However, do not mistake your insurer for your friend.

The Adversarial Nature

When you file a UM claim, your insurance company effectively steps into the shoes of the at-fault driver. Their goal shifts from “protecting you” to “minimizing the payout.” They may argue that your injuries are not severe or that you were partially at fault for the crash.

5. Common Challenges in UM Claims

• The “Hit-and-Run” Requirement: In many states, to file a UM claim for a hit-and-run, there must be physical contact between the vehicles. If a car swerves into your lane and runs you off the road without touching you (a “miss-and-run”), securing a UM claim can be legally complex and may require independent witnesses.
• Prompt Reporting: Most policies have strict deadlines (often 30 days or less) to notify them that you intend to file a UM/UIM claim. Missing this window can result in an automatic denial.
• Offset Clauses: Insurers often try to reduce your UIM payout by the amount you already received from the at-fault driver or your own PIP coverage. A lawyer is often needed to calculate the true value you are entitled to.

Conclusion

Uninsured Motorist coverage is the most important insurance you can buy to protect yourself and your family. It ensures that your financial stability is not dictated by the irresponsibility of other drivers. If you need to file a claim, treat it with the same seriousness as a lawsuit against a stranger—document everything, watch what you say, and consider legal counsel if the offer seems low.