Auto accidents involving uninsured or underinsured drivers are more common than many realize. Even in states where auto insurance is mandatory, thousands of drivers operate vehicles without adequate coverage. When these drivers cause an accident, injured individuals often find themselves dealing with unexpected expenses and limited recovery options.
This blog by Your Insurance Attorney outlines what to do if an uninsured or underinsured driver hits you. It also covers insurance options, documentation steps, legal alternatives, and how to protect your right to compensation after a collision.
Uninsured vs. Underinsured: What Is the Difference?
Although ‘uninsured’ and ‘underinsured’ are often used together, they refer to two different insurance issues.
An uninsured driver operates a vehicle without any active auto insurance policy. This includes drivers who have allowed their policies to lapse, never purchased insurance, or are excluded from the coverage they believed they had. If such a driver causes an accident, the injured party cannot file a third-party liability claim against an insurance company because there is no applicable policy.
On the other hand, an underinsured driver carries insurance, but the policy limits are too low to cover all the damages caused by the accident. For example, suppose a driver causes $100,000 in medical and property damage but only carries $25,000 in bodily injury coverage. In that case, the injured person may need to pursue the remaining balance through other means.
In both cases, the at-fault party is legally liable for the damages. However, recovering compensation becomes more difficult without sufficient insurance coverage to support the claim. This is where uninsured and underinsured motorist (UM/UIM) coverage becomes relevant.
Your Insurance Coverage and What It May Include
Your auto insurance policy may offer protection if you are hit by a driver with insufficient or no coverage. These protections vary by policy and by state, but commonly include the following:
Uninsured Motorist Coverage (UM)
UM coverage pays for injuries and property damage when the at-fault driver has no insurance. This type of coverage often applies in hit-and-run scenarios where the driver cannot be identified. UM is included in standard auto policies in many states or offered as an optional endorsement.
Underinsured Motorist Coverage (UIM)
UIM coverage applies when the at-fault driver has some insurance, but their liability limits are too low to cover your damages. In this case, their policy pays first, and your UIM coverage may apply to the remainder up to your policy limits.
Medical Payments (MedPay)
MedPay may help cover initial medical expenses, regardless of who is at fault. This can be especially useful when the other party has no coverage and payment delays are likely.
Collision Coverage
If the at-fault driver has no property damage liability coverage, your collision coverage may pay for repairs to your vehicle.
Personal Injury Protection (PIP)
In no-fault states, PIP covers medical bills, lost wages, and other expenses, regardless of who is at fault for the accident.
Policyholders are encouraged to review their declarations page to determine which protections apply. Insurers must explain available benefits, but claimants should document all interactions and request written explanations when needed.
Filing a Claim Against an Uninsured or Underinsured Driver
If a driver injures you without insurance or inadequate coverage, your insurance company may step in to pay covered losses. Filing a UM or UIM claim follows a process similar to other insurance claims but involves more direct negotiation with your carrier.
- Step 1: Notify Your Insurance Provider
Report the accident to your insurer as soon as possible. Provide all available details, including the other driver’s information, the police report number, and evidence you collected. - Step 2: Submit Supporting Documents
Include medical bills, proof of lost wages, vehicle repair estimates, and scene photos. Strong documentation supports the value of your claim and reduces delays. - Step 3: Monitor Claim Progress
Stay in contact with your claim representative and request updates in writing—also, track submission deadlines. Keep copies of all correspondence and responses. - Step 4: Respond to Requests for Additional Information
Insurers may ask for additional documentation or clarification. Respond promptly and keep a record of all submissions. - Step 5: Review Any Settlement Offer Carefully
Settlement offers may not reflect the full value of your injuries, especially if future medical treatment is needed. Consider having the offer reviewed before accepting.
Some insurers handle UM/UIM claims differently from third-party claims. The relationship may feel cooperative because you are filing with your provider, but disagreements over coverage, causation, or damages can still occur. If the insurer delays, denies, or undervalues the claim, it may be a good idea to seek additional review.
What Happens If the Uninsured Driver Fled the Scene?
When the at-fault driver leaves before law enforcement arrives, the situation becomes more difficult, but not impossible. Many insurance policies treat hit-and-run drivers as if they are uninsured for claim purposes.
- File a Police Report Immediately. A formal report supports your claim and may lead to the identification of the fleeing driver. Try to include as many details as possible, such as the vehicle’s make, color, license plate number, or direction of travel.
- Collect Witness Information. If anyone saw the incident, their statements may help establish what occurred or assist law enforcement in tracking down the vehicle.
- Notify Your Insurer Promptly. Your claim must indicate that the at-fault driver is unidentified or fled the scene. In many cases, this will trigger uninsured motorist provisions under your policy.
- Preserve All Evidence. Photos, medical records, and written statements help substantiate your injuries and support your claim even without a third-party insurance policy.
How Underinsured Motorist Claims Work When Coverage Is Not Enough
Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but the policy limits are too low to fully compensate for damages. This situation often arises in severe accidents where medical bills, lost income, and property damage exceed minimum liability limits.
- Primary Insurance Pays First. In a UIM claim, the at-fault driver’s insurer pays out up to their policy limit. After receiving payment, the injured party can only file a claim with their insurer under their underinsured motorist (UIM) coverage.
- Filing the UIM Claim. To access UIM benefits, the policyholder must show that the compensation received from the at-fault party is insufficient. Documentation such as medical records, wage statements, and repair bills must be submitted again during the UIM claim process.
- Proof of Exhausted Coverage. Insurers often require written confirmation that the at-fault driver’s policy has paid its maximum benefits before processing the underinsured motorist claim. This confirmation is usually provided as a settlement release or coverage limit statement.
- Disputes May Still Arise. Even with proper documentation, disagreements may arise over whether the crash directly caused injuries or losses. Some insurers may argue that the claim’s value is lower than what the injured person submitted. A legal review clarifies whether the insurer’s position is appropriate or if further negotiation is needed.
What to Do if Your Claim Is Denied or Delayed
Delays or denials in uninsured and underinsured motorist claims are not uncommon. Although policyholders expect their insurer to act promptly and fairly, that is not always the result.
- Reasons for Denial. Common reasons for denial include alleged late reporting, insufficient evidence, policy exclusions, or disputes about fault. Sometimes, the insurer disputes the necessity of medical treatments or questions whether the collision caused the injuries.
- Responding to Denial Letters. Insurers are required to provide a written explanation for a denial. This document should be reviewed carefully. If key facts are missing or the reason is unclear, request clarification and provide any additional documentation supporting the claim.
- Pursuing a Second Review. Some insurers offer an internal appeals process. Policyholders may submit a rebuttal with supplemental evidence, such as updated medical evaluations or an accident reconstruction report.
- Legal Support May Help with Next Steps. Further legal action may be available if appeals are unsuccessful or the delay continues beyond a reasonable time. Depending on the policy’s terms, this may include submitting a demand for arbitration or filing a lawsuit for breach of contract.
Can You Sue an Uninsured Driver if They Hit You?
Even when drivers lack insurance, they may still be held legally responsible for the damages they caused. However, the ability to recover compensation through a lawsuit depends on multiple factors.
- The Legal Right to Sue. In most jurisdictions, injured drivers can file a lawsuit against the at-fault party, regardless of whether that person carries insurance. A civil court may award damages for medical bills, pain and suffering, property damage, and lost income.
- Collectability Is a Challenge. Securing a judgment is only the first step. Collecting on that judgment is often tricky, particularly if the defendant has limited income or no significant assets. Many uninsured drivers lack the financial means to satisfy a court award.
- Alternative Collection Methods. Sometimes, a court may approve wage garnishment, property liens, or payment plans. These methods vary by jurisdiction and are subject to exemptions that protect low-income individuals.
- Coordination with Insurance Claims. Even if a lawsuit is filed, the injured party may still be able to pursue benefits through their uninsured motorist coverage. Legal counsel can help structure the claim to avoid double recovery while maximizing available sources of compensation.
When Legal Help May Improve Your Outcome
Although not every claim requires legal action, certain circumstances make professional guidance from a car accident lawyer more valuable. These include:
- Severe injuries requiring extended medical care
- Denied or delayed claims from your insurer
- Disputes about coverage or liability
- Accidents involving multiple drivers or unclear fault
- Significant loss of income or long-term disabilities
- Low settlement offers that do not reflect documented losses
Working with a car accident attorney can help you prepare your claim, collect evidence, communicate with the insurance company, and—if needed—handle arbitration or legal proceedings.
A qualified legal review may also reveal additional benefits or state-level protections that apply to your situation. Most consultations begin with evaluating your insurance policy, medical records, and crash documentation.
Why Choose Your Insurance Attorney After an Uninsured or Underinsured Driver Accident
A crash caused by an uninsured or underinsured driver can result in more than physical injury. Medical bills, income loss, and vehicle damage often create a financial strain, especially when the at-fault driver cannot cover those costs. In these situations, your own insurer may be responsible for providing compensation under your policy, but that process does not always go as expected.
Your Insurance Attorney ensures that your claim receives the full attention it deserves. Our legal team examines the terms of your policy, the extent of your injuries, and the financial impact of the collision, including long-term medical needs and any changes to your ability to work.
We also address claim delays, denials, or low settlement offers from your insurer. By assembling documentation, coordinating expert assessments, and building a clear picture of the damages involved, we work to achieve the outcome your situation requires. If the insurance company is unwilling to pay what your claim is worth, we are prepared to act on your behalf.
Frequently Asked Questions About Uninsured Driver Accidents
Do I need uninsured motorist coverage to file a claim?
You need UM or UIM coverage under your policy to file a claim when the at-fault driver has insufficient insurance. Some states require these coverages; others offer them as optional. Check your policy documents to confirm.
What if my own insurer delays my claim?
You have the right to receive timely updates and written explanations. You may file a formal complaint or seek legal review if the delay is unreasonable.
Can I recover compensation from both UM and MedPay?
Yes. UM coverage and MedPay may be used together to serve different functions. MedPay typically covers initial medical bills, while UM addresses broader damages. However, policies may contain clauses that limit overlapping recovery.
Will filing a UM or UIM claim increase my insurance premiums?
Filing a claim under uninsured or underinsured motorist coverage generally does not increase your premiums, especially when you were not at fault for the accident. These coverages are designed to protect you when another driver lacks sufficient insurance.
However, insurers may consider the total number of claims filed over time when reviewing future rates. It’s a good idea to ask your insurer directly how a UM or UIM claim might affect your policy before making a decision. A review of your rights with a knowledgeable auto accident attorney can also clarify whether the claim will be processed in your favor under your contract terms.
