Hit by an Uninsured Driver: How to Get Paid Anyway

Roughly 1 in 8 US drivers is uninsured

The Insurance Research Council estimates that about 13% of drivers in the United States carry no insurance at all. In some states — Mississippi, Michigan, Tennessee — the rate is over 20%. When one of them hits you, the panic is real: what do you do when the person who caused your injuries can't pay for them?

The answer, in most cases, is that you turn to your own auto insurance policy. Every state either requires or offers what's called uninsured motorist (UM) and underinsured motorist (UIM) coverage. If you have it — and most drivers do — it exists precisely for this situation.

How uninsured motorist coverage works

Uninsured motorist coverage steps into the shoes of the at-fault driver. Your own insurance company pays your damages, up to the limits of your policy, as if it were the at-fault driver's insurer. That includes medical bills, lost wages, pain and suffering, and — depending on the state — property damage.

Underinsured motorist coverage kicks in when the at-fault driver has some insurance but not enough. If they have a $25,000 policy and your damages are $150,000, your UIM coverage can fill some or all of the gap.

What to do in the first week

Handling a UM/UIM claim is different in one critical way from handling a claim against a third party's insurer: you have a contractual duty to cooperate with your own insurer. You must report the accident promptly. You may have to give a recorded statement. You must provide documents they ask for. But that doesn't mean the process is friendly.

• Report the accident to your own insurer within 24-48 hours
• Get every piece of evidence you can — police report, photos, witness info
• Get medical care and keep every appointment
• Do not accept a first offer, especially before you know your prognosis
• Read your policy carefully — especially the UM/UIM section

Your own insurer becomes an adversary

This is the part most people don't expect. When you file a UM claim, your insurer is now on the hook for money — money that comes out of their pocket. They are legally required to act in good faith, but every dollar they save is a dollar you don't get. The friendly agent who sold you the policy is not the person handling the claim. That's an adjuster who is paid to close claims cheaply.

This is a big reason why UM claims often benefit from an attorney. Insurers treat represented UM claimants very differently from unrepresented ones — and settlements typically go up when a lawyer gets involved.

What if you don't have UM coverage?

You still have options. A good attorney will look for every possible source of recovery:

• Other insurance policies in your household
• The at-fault driver's personal assets (real estate, wages)
• Employer liability if the driver was on the job
• Bar or restaurant liability under dram shop laws if the driver was drunk
• Product liability if a vehicle defect contributed

Hit and run: treated as uninsured in most states

If you were the victim of a hit and run, most states allow you to make a UM claim on your own policy — even though the at-fault driver is unknown. Prompt reporting to police is critical, though, and some states have specific requirements (physical contact, corroborating witnesses) for hit-and-run UM coverage.

Talk to an attorney before you talk to your insurer

A UM/UIM claim looks straightforward from the outside — it's your own insurer, after all. In reality, these claims are contested constantly. An experienced car accident lawyer knows the tactics and knows how to hold your insurer to its obligations. OwlAdvocate matches you with an attorney near you, free of charge, in minutes.