Being hit by someone with no insurance, or with a policy far too small to cover your injuries, is more common than most people expect. It changes who you are claiming against and how the negotiation works, but it does not necessarily mean you recover nothing.
I am not a lawyer and this is general information, not legal advice. Laws and insurance practice vary by state. Speak to an attorney licensed in your state about your own situation.
Uninsured motorist coverage
Uninsured motorist coverage, usually written as UM, is part of your own policy. It steps in when the at-fault driver has no insurance, and in most policies it also applies to hit-and-run crashes where the driver is never identified.
It generally covers the same categories the at-fault driver’s liability policy would have: medical expenses, lost income, and pain and suffering, up to your UM limit.
Underinsured motorist coverage
Underinsured motorist coverage, or UIM, applies when the other driver has insurance but not enough. State minimum liability limits are often low relative to what a serious injury actually costs, so a driver can be fully insured under state law and still nowhere near able to cover your losses.
How UIM stacks against the other driver’s policy varies by state, and it is one of the areas where getting state-specific advice genuinely matters.
Check your own policy first
Look at your declarations page for UM and UIM lines. The Insurance Information Institute explains how uninsured and underinsured motorist coverage works in general terms, and your state Department of Insurance publishes the rules that apply where you live. Many people carry this coverage without knowing it. In some states, it is included unless you declined it in writing.
The part people find surprising
A UM or UIM claim is made against your own insurer, but it is still an adversarial negotiation. Your insurer is paying out of its own funds, and the claim is handled much like any liability claim: an adjuster, a claim file, a reserve, and offers that start low.
Being a long standing customer does not change the process. See how adjusters handle claims.
Other sources of recovery
- Medical payments coverage on your own policy, often called MedPay, pays medical bills regardless of fault.
- Personal injury protection in no-fault states covers medical costs and some lost income through your own policy.
- Your health insurance can and should be used for treatment, though it may seek reimbursement from any settlement. See medical liens and reimbursement.
- A third party may share responsibility, such as an employer if the driver was working, or a vehicle owner who lent the car.
- Suing the driver personally is possible but often pointless, since a driver with no insurance frequently has no assets to collect against.
Important practical points
Notify your own insurer promptly. Policies contain notice requirements for UM and UIM claims, and these can be much shorter than the deadline to file a lawsuit.
Also, do not settle with the at-fault driver’s insurer before speaking to your own about a UIM claim. Many policies require consent before you release the at-fault party, and settling without it can void your UIM coverage entirely.
That single point catches people out regularly, and it is worth a phone call before signing anything.