The other driver pulls over, and then the conversation goes somewhere unexpected. There is no policy. Or there is one, but the limits would not cover the damage to the bumper, let alone anything else. Or they do not stop at all.
In each of those situations the claim does not disappear. It moves - to your own policy, under cover most drivers carry and relatively few have looked at.
What this guide covers
- Uninsured cover applies when the at-fault driver had no insurance
- Underinsured cover applies when their limits are too low for the loss
- Hit and run is commonly treated as uninsured, with conditions attached
- The claim goes to your own insurer, which changes the dynamic
- Check the declarations page - many hold this cover without knowing
- Notice requirements are strict and often shorter than people expect
Two covers, two situations
They are sold together often enough that people treat them as one thing. They answer different problems.
Uninsured motorist cover responds where the driver responsible had no insurance in force. In many states it also responds where the vehicle was never identified - the hit and run case - on the reasoning that an unfindable driver and an uninsured one leave you in the same position.
Underinsured motorist cover responds where the other driver was insured, but not for enough. State minimum liability limits can be modest relative to what a serious collision actually costs, and a driver carrying only the minimum is common. This cover is intended to bridge the gap between their limit and your loss.
How that bridge is calculated varies materially between states. Some reduce your available cover by the amount already recovered from the other driver; others do not. It is a technical point with a large effect on the number, and it is a question for your own policy wording and your state's rules rather than a general answer.
Find out whether you have it
Open the declarations page. Uninsured and underinsured cover normally appears there as UM, UIM, or a combined abbreviation, with its own limits set out separately from liability cover.
Several states require insurers to offer this cover and require a written rejection if a driver declines it, which is why many people hold it without recalling the decision. Other states have no such requirement.
If it is not on the declarations page, ask the insurer to confirm the position in writing. "I don't think you have that" from a call centre is not a record of anything.
The conditions that catch people
These claims carry requirements that ordinary collision claims do not, and missing one can end the claim regardless of its merits.
Prompt notice. Policies commonly require notification of a potential uninsured or underinsured claim within a defined period, and it can be considerably shorter than the general limitation period for a lawsuit. A driver who spends six months negotiating with the other insurer before discovering the limits are inadequate may find the notice window on their own policy has closed.
Police reporting for hit and run. Where the driver is unidentified, cover frequently depends on having reported the incident to the police promptly. Some states or policies additionally require evidence of physical contact between the vehicles, which excludes being run off the road by a car that never touched you. Reporting immediately preserves the option.
Consent before settling with the other driver. This is the one that does the most damage. Many policies require the insurer's consent before you accept a settlement from the at-fault driver's insurer, because settling extinguishes the subrogation rights your insurer would otherwise have. Accepting a quick offer without that consent can forfeit the underinsured claim entirely. Ask before signing anything.
Cooperation. Recorded statements, examinations under oath, medical authorisations and document requests are commonly required under the policy. The guidance on recorded statements applies with a wrinkle: the obligations owed to your own insurer under the policy are different from those owed to a stranger's insurer, so the question is what the policy requires rather than whether to engage at all.
What the file needs
Because the insurer is assessing rather than defending, the evidence has to carry the claim on its own.
Everything from the scene. Photographs of vehicle positions, damage to both vehicles, the road, signage, skid marks and conditions. Contact details for any witness. The accident documentation checklist covers the full list.
The police report. Central here, particularly for a hit and run, where it may be a precondition of cover rather than merely useful. Requesting the report and checking it is worth doing early, because errors in it are much easier to address soon after the event than months later.
Evidence about the other driver's insurance. A declination letter, a policy limits disclosure, or correspondence showing no cover was in force. For an underinsured claim, written evidence of the other policy's limits is usually required before your insurer will engage on the gap.
Medical records and bills, organised chronologically, where injury is claimed.
A dated log of every contact, with names and what was said.
Uninsured and underinsured claim checklist
Report to the police immediately, especially for hit and run
Often a condition of cover, not just good practice.
Check your declarations page for UM and UIM limits
Listed separately from liability cover.
Notify your own insurer promptly
Notice windows are often shorter than the limitation period.
Photograph everything at the scene
Both vehicles, positions, road, signage, conditions.
Collect witness details before anyone leaves
Names and phone numbers. Independent witnesses carry weight.
Request the police report and check it for errors
Corrections are easier soon after the event.
Get written evidence of the other driver's cover position
Declination, or a limits disclosure for an underinsured claim.
Do not settle with the other insurer without your own insurer's consent
Settling can forfeit the underinsured claim entirely.
Read what the policy requires of you
Statements, examinations, authorisations, document requests.
Keep medical records and bills in date order
Where injury forms part of the claim.
Ask whether a deductible applies
Some states and policies apply one to property damage under this cover.
Log every call with date, name and substance
These claims run long and change hands.
Whether this cover is mandatory, how underinsured limits are calculated, deductibles and notice periods are all set by state law and policy wording and vary considerably. Read your own declarations page and confirm with your state department of insurance.
Where these claims usually stall
Three points account for most of the friction.
Disagreement about who was at fault, with no other insurer contesting the point and no driver available to contradict your account. Independent evidence - a witness, a camera, the police report - matters more here than in an ordinary claim.
Disagreement about value, particularly where injuries are soft-tissue and the medical picture is contested.
Arguments about the limits calculation on an underinsured claim, where how the gap is worked out can move the figure substantially.
If the claim is denied or the offer falls well short of documented loss, the appeal and escalation route applies here as it does to any other claim, and your state department of insurance accepts complaints about claims handling at no cost. Many policies also contain an appraisal or arbitration clause specific to uninsured motorist disputes, which is a different mechanism from a coverage appeal.
Where the vehicle itself is written off, the total loss process runs the same way regardless of which cover is paying.
When to take advice
This explains how these covers generally work. It does not tell you what your policy provides, how your state calculates an underinsured limit, or what a particular claim is worth.
Speak to a licensed attorney in your state before accepting any settlement from the at-fault driver's insurer if you may have an underinsured claim, if anyone was injured, if liability is disputed and evidence is thin, or if your own insurer has denied the claim on grounds that do not match the policy wording. Your state department of insurance can confirm the rules where you are and accepts complaints about claims handling at no cost.