How to Handle Uninsured and Underinsured Motorist Claims?

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By Richard

In 2022, the Insurance Research Council found that approximately 14.01% of drivers in the US were uninsured. Uninsured and underinsured motorist claims result from individuals operating vehicles without proper liability insurance despite legal requirements. The IRC’s measure of auto insurance affordability indicates that personal auto insurance has become more affordable for the average consumer. The 2010s saw average expenditures drop to 1.6% of median household income from 1.9% in the 1990s.

The aftermath of auto accidents involving UM and UIM can be challenging. We will walk you through the way for handling UM and UIM claims.

UM and UIM Claims – Overview

Uninsured or underinsured motorist coverage becomes essential when the at-fault driver lacks sufficient liability coverage. In simple terms, uninsured motorist coverage provides financial protection if you are in an accident rendered by someone uninsured or without enough insurance to cover the damages.

This coverage can differ between shouldering the financial burden of an accident you didn’t cause and having your insurance step in to cover the costs. This is particularly relevant in states where a significant portion of drivers are uninsured, making the additional cost of this coverage potentially worthwhile.

What are Underinsured Motorists Bodily Injury (UMBI)?

Underinsured Motorists Bodily Injury (UMBI) coverage is a facet of auto insurance that provides financial protection in specific injury-related scenarios.

If you’re involved in an accident with an underinsured driver and incur medical expenses or experience pain and suffering, your UMBI coverage kicks in. It helps cover these costs up to the limits specified in your policy. This provides financial security, especially when the at-fault driver’s insurance falls short of covering your actual expenses.

Ways To Handle Uninsured and Underinsured Motorist Claims

When dealing with UM and UIM claims, it’s essential to approach the process systematically. Here’s a closer look:

For Uninsured Drivers

Contact Your Insurance Company – You initiate the process by promptly informing your insurance company about the accident. Your insurer will file an uninsured motorist (UM) claim on your behalf.

Provide Documentation – Gather and submit all relevant evidence related to the accident. This documentation supports your claim and aids in the investigation process.

Cooperate with Investigation – If your insurance company needs to investigate the accident, be responsive and cooperative. Your cooperation will expedite the claims approval process.

For Underinsured Drivers

File a Claim with Other Driver’s Insurance – Begin by filing a claim with the underinsured driver’s insurance company. Even if their policy limits are insufficient, this is a necessary step.

Contact Your Insurance Company for UIM Claim – After you have exhausted the other driver’s insurance, contact your insurance company for an underinsured motorist (UIM) claim. Inform them of the limitations of the other driver’s policy.

Provide Documentation – Similar to handling uninsured claims, submit comprehensive documentation to support your UIM claim. This includes evidence of damages, medical bills, and other relevant information.

Cooperate with Investigation – Cooperation remains crucial, as your insurance company may need to investigate before approving the UIM claim. Being proactive in providing information facilitates a smoother process.

Consider Hiring an Attorney

Help Gather Evidence – Personal injury attorneys can assist in collecting and organizing evidence to strengthen your claim. Their expertise ensures that all necessary information is presented effectively.

Negotiate with Your Insurance Company – Attorneys are skilled negotiators who can advocate for the best possible settlement and can negotiateand can negotiate more favorable outcomes in discussions with your insurance company.

File a Lawsuit if Necessary – If a settlement isn’t reached, attorneys can file a lawsuit on your behalf. Legal representation becomes particularly valuable in navigating complex legal proceedings.

Final Thoughts

Handling uninsured and underinsured motorist claims requires diligence and cooperation. Being well-prepared and understanding the process can significantly impact the outcome of your claim.

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