How Much Can I Get from an Underinsured Motorist Claim?

Being involved in a car accident is stressful enough. Still, it can become even more overwhelming when the at-fault driver’s insurance coverage isn’t sufficient for the costs of your injuries and damages. Underinsured motorist coverage fills the gap in these situations, providing financial protection for the victim.

About 14.0% of drivers across the U.S. are uninsured, while a significant number carry only the minimum required coverage, leaving them underinsured in severe accidents. [1]

These situations can leave accident victims struggling to cover medical bills, lost wages, and vehicle repairs. Understanding your rights under uninsured motorist coverage and knowing how much you can expect from a claim becomes essential.

Underinsured motorist coverage helps protect you by covering the difference between the at-fault driver’s liability limits and the actual cost of your damages. Understanding how underinsured motorist claims work is crucial for navigating this complex process effectively.

It’s important to know what factors influence the settlement amount, policy limit, and attorney’s role in maximizing your recovery, to ensure you receive the financial compensation you deserve.

The Importance of Underinsured Motorist Coverage

Underinsured motorist coverage is essential because even though state laws require an auto insurance policy, many drivers carry the bare minimum, which often doesn’t fully cover damages in the event of a severe accident. Nearly 14% of drivers are underinsured, meaning their policy limits are insufficient to cover the costs of a significant car accident. [1]

For instance, the average bodily injury claim from a car accident in the U.S. is around $24,211, while property damage claims average $5,313. [2]

If the at-fault driver’s liability limits are below these amounts, the victim is left covering the difference unless they have underinsured motorist coverage. Underinsured motorist coverage steps in during these situations to ensure accident victims aren’t left with crippling medical bills, lost income, or vehicle repair costs.

Understanding UIM Policy Limits and Their Function

Underinsured motorist coverage bridges the gap between the at-fault driver’s insurance and the total damages incurred by the accident victim. Each insurance policy has specific limits, which dictate how much the insurance company will pay in a UIM claim.

Underinsured motorist coverage limits are typically set at $25,000, $50,000, or $100,000, but the coverage amounts vary depending on the policyholder’s selection, the state, and the insurance company. [1]

State-Specific Requirements for UIM Coverage

Underinsured motorist coverage requirements vary significantly by state. In some states, UIM coverage is required by law, while in others, it is optional. States like Connecticut and Illinois mandate that all drivers carry UIM coverage with minimum limits, while states like California offer it as an optional add-on.

Interestingly, the states with the highest rates of underinsured drivers—such as Florida, Mississippi, and New Mexico—do not mandate UIM coverage.

Eligibility for Filing an Underinsured Motorist Claim

Certain conditions must be met when filing an underinsured motorist claim. First, the other driver must be at fault for the accident, and their liability insurance must be insufficient to cover your damages.

Typically, UIM claims can only be filed if the at-fault driver’s insurance company covers them for an amount lower than your underinsured motorist coverage. State-specific thresholds also determine when a driver is considered underinsured.

While the success rate for underinsured motorist coverage claims varies by state and specific circumstances, having a solid case backed by proper documentation significantly increases the likelihood of a favorable outcome.

What Will Underinsured Motorist Coverage Include?

Underinsured motorist coverage is designed to account for a range of expenses that arise from a car accident. These include medical expenses, lost wages, pain and suffering, and property damage. It’s important to note that coverage may differ from state to state regarding property damage claims, including whether it applies to vehicle repair or replacement costs.

Medical Expenses

Car accidents often result in significant medical expenses. The average cost of an emergency room visit following a car accident is $3,300. In contrast, the average hospitalization cost for accident victims exceeds $57,000. [3] UIM coverage can help pay for immediate care, such as emergency room visits, surgeries, and long-term rehabilitation costs.

For example, if you suffer a broken leg that requires surgery, your total medical expenses could easily exceed $40,000, depending on the severity of your injuries and the length of your recovery. UIM coverage will help cover these remaining costs if the at-fault driver’s liability insurance is insufficient.

Lost Wages

Injuries from car accidents often result in time away from work, which can lead to significant financial strain for victims.

Car accident victims miss an average of 11 work days [4]. For someone earning $1,000 per week, that equates to $2,200 in lost wages. UIM claims typically cover these lost earnings, ensuring accident victims maintain financial stability during recovery.

Pain and Suffering

Pain and suffering are non-economic damages and refer to the physical and emotional distress experienced after an accident. While difficult to quantify, these damages are critical to many UIM claims. In cases of severe injuries, UIM claims may include significant compensation for pain and suffering.

Property Damage

While most UIM policies focus on bodily injury, some provide compensation for vehicle repairs or replacement. The average cost of vehicle repairs following an accident ranges from $3,000 to $5,000, though this can rise significantly depending on the extent of the damage.

Factors Influencing the Value of a UIM Claim

The value of a UIM claim depends on several factors, including the severity of your injuries, the amount of lost income, hospital bills, pain and suffering, and property damage.

The Financial Impact of Insufficient UIM Coverage

Having insufficient UIM coverage can lead to significant financial strain. The average cost of a car accident in the U.S., including medical expenses, lost wages, and property damage, is around $24,200. [3] If your UIM coverage is only $25,000, a severe accident can quickly exhaust your coverage, leaving you to pay the rest out-of-pocket.

Opting for higher UIM policy limits, such as $100,000 or more, can provide better financial protection in a major accident.

Comparing UIM and Uninsured Motorist Claims

While underinsured motorist coverage protects you when the at-fault driver’s insurance is insufficient, uninsured motorist coverage applies when the at-fault driver has no insurance.

UIM coverage typically pays the difference between the at-fault driver’s policy limit and the actual damages up to the UIM policy limit. Uninsured motorist claims usually pay up to the policy limit.

Filing a UIM Claim

Typically, the process of filing an underinsured motorist claim involves:

1. Gathering documentation: Collecting medical records, repair bills, and proof of lost wages.
2. Filing a claim: Submitting your UIM claim to your insurance company.
3. Negotiating with adjusters: Insurance company adjusters often try to minimize payouts, so skilled and assertive negotiation is crucial to secure the maximum amount possible.

The average time to settle a UIM claim is around 3 to 6 months, though this can vary depending on the complexity of the case.

Challenges in the UIM Claims Process

Common challenges when making an underinsured motorist claim include proving that the at-fault driver’s insurance is insufficient and disputes over the severity of injuries or coverage limits. Around 30% of UIM claims face delays or conflicts due to inadequate evidence or disagreements over the claim’s value.

Proving the At-Fault Driver’s Insurance Is Insufficient

One critical step to succeed in an underinsured motorist claim is proving that the at-fault driver’s insurance is insufficient to cover the damages. This process involves gathering and presenting evidence of the total damages incurred and the at-fault driver’s policy limits.

Obtaining the other driver’s insurance details as soon as possible is essential, typically through a police report or by contacting their insurer. Once you know their coverage limits, you must demonstrate that your medical bills, lost wages, and other damages exceed these amounts.

However, a common obstacle in UIM claims is insufficient proof of damages or policy limits, which leads to claim denials. Insurance companies require thorough evidence to support claims; inadequate documentation or submission errors can result in delays or denials.

Disputes Over Uninsured Motorist Coverage Claim Limits

Disputes over uninsured motorist claim coverage limits are common and can significantly impact compensation. Insurers frequently argue that the claimant’s damages don’t exceed the at-fault driver’s liability limits or that the injuries aren’t as severe as presented.

Insurance companies often try to minimize payouts relating to an uninsured motorist claim by disputing the nature and extent of injuries. A common strategy involves using independent medical examinations to downplay the long-term impact of injuries.

Another tactic insurers use is arguing that certain expenses, such as long-term rehabilitation or future lost wages, are speculative or excessive.

To mitigate these challenges, claimants should fully document their injuries, retain expert witnesses when necessary, and consult with an attorney to present a solid case for the full extent of damages.

Legal Recourse When An Insurance Company Disputes Your UIM Claim

Legal recourse may be your best option if your insurance company disputes or undervalues your underinsured motorist claim. Insurance companies are known to offer low settlements initially, often pushing claimants to accept less than they deserve.

When disputes over underinsured motorist claim coverage or payout amounts cannot be resolved through negotiation, claimants may need to consider mediation, arbitration, or litigation. Underinsured motorist claim cases resolved through litigation often result in higher payouts compared to settlements reached without legal intervention.

The Role of Attorneys in Maximizing UIM Claims

Hiring an experienced personal injury attorney can significantly enhance the chances of obtaining a fair settlement in an underinsured motorist claim. Attorneys are skilled in gathering the necessary evidence, negotiating with insurance adjusters, and challenging low-settlement offers.

Strategies to Maximize Your UIM Claim Settlement

To maximize your underinsured motorist claim settlement, be proactive and organized throughout the claims process. As a claimant, you should keep detailed records of all expenses, document your injuries, seek medical attention promptly, and hire an experienced attorney to facilitate the process.

Expected Timeline for Resolving a UIM Claim

The timeline for resolving a UIM claim can vary widely depending on the complexity of the case and whether disputes arise during the process. On average, a straightforward UIM claim takes about three to six months to resolve. In comparison, more complex cases involving severe injuries or coverage disputes may take nine months to over a year.

Factors That Can Affect the Timeline for Resolving a UIM Claim

Several factors can expedite or delay the resolution of a UIM claim.

For instance, cases where medical documentation is incomplete, or the claimant is still undergoing medical treatment may take longer to settle, as insurance companies prefer to have a complete picture of the damages before issuing payment. Conversely, claims that are well-documented and supported by clear evidence are more likely to be resolved quickly.

Statutes of Limitations for UIM Claims by State

The statute of limitations for filing a UIM claim varies by state, and it’s critical to be aware of these deadlines to avoid forfeiting your right to receive financial compensation.

In most states, the statute of limitations for filing a UIM claim is between two to three years from the accident date, though some states, like Kentucky and Louisiana, have shorter time limits of just one year.

UIM claims can be denied if the claimant fails to file within the statute of limitations. Missing the deadline means that, regardless of the strength of your case, you may be unable to recover compensation through a UIM claim.

Secure Expert Legal Representation Today!

If you’ve been injured in an accident caused by an underinsured driver, securing expert legal representation can make all the difference in the outcome of your claim.

At Rosenfeld Injury Lawyers, we have extensive experience handling underinsured motorist claims, ensuring our clients receive the maximum compensation they deserve. With our car accident attorneys on your side, you’ll be equipped to navigate the complexities of the UIM claims process confidently.

Contact our experienced Chicago personal injury attorneys at (888) 424-5757 for a free consultation, or fill out the contact form and let us help you through this challenging time.

Resources: [1] iii.org, [2] iii.org, [3] CDC, [4] NIH.gov

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.