Hit By An Underinsured Driver
The situation: The driver who hit me has insurance, but only the state minimum. My bills are much higher. What now?
Quick Answer
The at-fault driver's insurer pays up to their liability limit. For the rest, your own underinsured motorist coverage, if you have it, may pay up to your limit; how it's calculated depends on your state. Health insurance, PIP or medical payments coverage may also help with medical bills.
Read to the end to complete this scenario.
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What Happened
Ana was rear-ended by a driver with a $25,000 per person bodily injury limit. Her medical bills and lost wages reached $68,000. The other driver's insurer paid its $25,000 limit. Ana's own policy had uninsured/underinsured motorist coverage of $50,000 per person, which paid much of the remaining amount after her insurer reviewed the claim.
Likely Relevant Policies
- Auto Insurance (yours)
- Auto Insurance (at-fault driver)
- Health Insurance
Potential Coverages
At-fault driver's bodily injury liability High likelihood
Pays your injuries up to their limit.
Your underinsured motorist coverage High likelihood
May pay above their limit, up to yours, depending on state rules.
Your PIP or medical payments Possible likelihood
Can pay medical bills regardless of fault.
Possible Exclusions
- Without UIM coverage, the gap may fall on you or require a claim against the driver personally.
- Some states reduce UIM by the amount the other insurer paid.
Questions That Determine Coverage
- What is the at-fault driver's limit?
- Do you have UIM coverage, and how much?
- How does your state calculate UIM?
- Do you have PIP, medical payments or health insurance?
Recommended Immediate Actions
- Get medical care and keep all records.
- Notify your own insurer early, even before the other insurer settles.
- Ask your insurer before signing any settlement with the other insurer.
- Keep a log of lost wages.
Documents to Collect
- Medical bills and records
- Police report
- Proof of lost wages
- Both drivers' insurance information
Common Claim Process
The at-fault driver's insurer pays up to its limit. Your insurer then reviews a UIM claim for the remainder, up to your limit. Your insurer may need to consent before you settle with the other insurer.
Potential Outcomes
- Bills paid by the other driver's limit plus your UIM.
- A remaining gap if both limits are too low.
- Your insurer may pursue the at-fault driver.
Risk Prevention Tips
- Consider UIM limits that match your liability limits.
- Check whether your state allows stacking.
Frequently Asked Questions
Will a UIM claim raise my premium?
It usually shouldn't when you weren't at fault, but rules vary.
Is UIM required?
Only in some states.
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The factual claims on this page were checked against these sources. Rules and figures change, so check the source itself if you need to confirm the current version.
- Auto insurance guideTexas Department of Insurance
- Background on: Compulsory auto/uninsured motoristsInsurance Information Institute (Triple-I)
Educational information, not advice: This scenario describes how a loss like this commonly goes, not how your claim will be decided. Coverage depends on your policy's wording, limits and deductibles, your state, and the facts. Confirm specifics with your insurer.