Many people believe that the insurance of the driver who caused the accident will cover all of their losses. Unfortunately, this isn’t always the case. This is why it’s critical to understand underinsured motorist (UIM) coverage and how it works in Pennsylvania. By carrying underinsured motorist coverage on your own auto insurance policy, you fill in coverage gaps left by the insurance of the person who caused your accident.
What is Underinsured Motorist Coverage?
Say you got into a car accident with someone who lacks adequate insurance coverage. Should your injuries prove more serious than you first believed, you’ll appreciate having UIM coverage. If the driver responsible for the crash lacks sufficient insurance to cover your medical bills, lost wages, and other expenses, your own underinsured motorist coverage will step in.
UIM coverage can help pay for costs the other driver’s insurance won’t cover. Each insurance policy has a coverage limit or maximum amount it will pay on a claim. So, if the person who hit you only has $15,000 in bodily injury coverage per person, but your injuries cost $40,000 to treat, you’ll need to rely on your own insurance policy to make up the difference.
You have UIM coverage if your insurance company pays you for losses that the other driver’s insurance company doesn’t cover. Insurers offer UIM coverage in Pennsylvania, but it is not required.
How UIM Coverage Works
Pennsylvania had 110,765 recorded road accidents in 2024. There were 1,127 fatalities and 66,950 injuries from these collisions. Most of these crashes need some form of insurance to cover the cost of damages.
After an accident, you’ll first file a claim against the person who hit you, also known as the at-fault driver. UIM coverage steps in to cover outstanding expenses after the at-fault driver’s insurance has reached its limit. Keep in mind that Pennsylvania is a fault state. When it comes to car insurance claims, this means that the person who caused the accident is responsible for paying for the losses they caused.
Pennsylvania state law does require drivers to carry liability insurance. However, those minimums don’t always match up with actual costs. Medical bills, lost wages, and lasting effects can quickly become overwhelming. That’s why UIM coverage is there. The reality is that even if someone drives without insurance, they could still be covered by another policy, and UIM acknowledges this.
Accidents caused by underinsured drivers often lead to serious injuries that require extensive recovery time. As a result, UIM can play a major role in these cases.
The Difference Between UIM and Uninsured Motorist Coverage
Uninsured/underinsured motorist (UM/UIM) coverage is one of those confusing terms in car insurance. Part of the confusion is that UIM sounds so similar to uninsured motorist (UM). They are not the same coverage, though. Uninsured motorist coverage is used when the negligent driver has no insurance at all. UIM coverage comes into play when the at-fault driver has insurance, but not enough insurance.
Having both types of coverage gives you the most complete coverage in case the negligent driver has limited or no insurance.
How UIM Affects a Car Accident Claim
UIM plays into your overall car accident claim once it becomes clear the negligent driver does not have enough insurance to cover damages. If you find yourself in this situation, your claim may move from your other driver’s insurance company to your own insurance company. Filing a claim with your own insurance company can feel odd. Naturally, you’ve suffered injuries due to another party’s fault. It is part of how UIM works, though.
Remember that your own insurance company will look at your claim through the same lenses. Questions of liability, damages, and evidence will be considered. Medical records, the police report, and proof of your losses will all matter.
Hire a Car Accident Lawyer
Timing is important when you’re considering hiring a car accident lawyer. Uninsured/ Underinsured Motorist Coverage (UIM) claims are unique in that they often don’t arise until after the claims process with the at-fault driver’s insurance company has started.
As UIM claims are composed of three different layers: liability, insurance coverage, and policy limits, it helps to break down when you should consider hiring a Pennsylvania car accident attorney.
FAQs
What Is Covered Under the Underinsured Motorist Coverage?
Underinsured motorist (UIM) coverage typically kicks in when the negligent driver’s insurance doesn’t sufficiently cover your losses. It can help pay for your medical bills, lost wages, and other losses you incur due to your injuries. Often, it can include longer-term losses like continued care or decreased earning capacity as well, depending on your policy.
Is UM/UIM Worth It?
Lots of drivers find UM/UIM coverage valuable. You essentially get more insurance in the event that another driver doesn’t have enough. Minimum coverage costs so little because it’s hardly sufficient if you’re in a significant collision. Deciding if it’s worth it is a personal decision that depends on how much risk you’re willing to take, your financial situation, and how much coverage you want.
Who Pays When You Are Hit by an Uninsured Driver?
In case you’re struck by an uninsured driver, you can claim under your own uninsured motorist (UM) policy if you have it. Uninsured motorist insurance kicks in when the liable driver has no insurance whatsoever. Without uninsured motorist coverage, you may have trouble collecting unless you file a legal claim against the driver who hit you.
What Is a Good Amount for Underinsured Motorist Coverage?
How much underinsured motorist coverage you buy depends on your unique needs and your tolerance for risk. Most people select limits equal to or higher than their liability limits. It’s wise to align your policy limits so you’re not stuck with only recouping the minimums for significant injuries or a prolonged recovery period.
Contact SMT Legal
Learning how Underinsured Motorist coverage works in Pennsylvania begins with understanding that not all insurance policies are equal. Just because another driver has insurance doesn’t mean they have adequate coverage.
At SMT Legal, we understand car accident laws and how they relate to insurance. We can help you understand these laws and how they apply to your case. Contact us today for more information.
