Why Uninsured & Underinsured Car Insurance Coverage is So Important

Uninsured (UM) and Underinsured (UIM) motorist coverage is a part of your own car insurance policy that pays for your medical bills, lost wages, and other damages when the driver who caused your accident has no insurance or not enough to cover your losses. With rising insurance premiums, the number of unprotected drivers is increasing. 

In fact, recent reports suggest that as many as one in three drivers on the road was either uninsured or underinsured. This means your chances of being hit by someone who cannot pay for the harm they cause are higher than you might think.

If you have questions about what to do after being hit by an uninsured or underinsured driver, you deserve to get answers. Call Leonard Hill – Personal Injury Lawyers And Car Accident Lawyers at (215) 567-7600 for a clear explanation of your options.

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The Real Reason You Need This Coverage: A Growing Number of Drivers Can’t Afford Insurance

Why Is This Happening?

The primary driver behind this trend is affordability. The average cost of full-coverage auto insurance jumped 20% between mid-2022 and mid-2024. For many households, this price hike forces a difficult choice between paying for insurance and covering other essential expenses like housing, food, and utilities.

This economic strain creates a dangerous situation on the roads. It leaves responsible, insured drivers like you to bear the financial burden when an accident is caused by someone without adequate coverage.

What Are Uninsured (UM) and Underinsured (UIM) Coverage, Exactly?

Uninsured Motorist (UM) Coverage: Your Primary Shield

This is the portion of your policy that steps in when the at-fault driver has no liability insurance at all. Uninsured motorist coverage also applies in hit-and-run situations where the driver cannot be identified and flees the scene. Without this protection, you would be left to cover your own medical bills and other losses out-of-pocket.

Think of UM coverage as a financial backstop. When the person responsible for your injuries has nothing to offer, your UM coverage acts as a substitute for the insurance they should have had. It ensures you have a source of recovery for the damages you have sustained.

Underinsured Motorist (UIM) Coverage: Bridging the Financial Gap

This coverage applies when the at-fault driver has insurance, but their policy limits are too low to cover the full cost of your injuries. In Pennsylvania, the minimum bodily injury liability coverage a driver is required to carry is only $15,000 per person. If your medical bills and lost wages exceed this amount, that driver is “underinsured.”

Your UIM coverage can then be used to pay for the remaining damages, up to the limits of your own policy. Imagine your total damages from an accident are $100,000. The at-fault driver has the state minimum of $15,000. After their insurance pays that amount, you could still be facing $85,000 in costs. Your UIM policy is designed to cover that difference, protecting you from a substantial financial shortfall.

“I Have to File a Claim With My Own Insurance? How Does That Work?”

A Shift in the Process

Normally, you pursue compensation from the at-fault driver’s insurance company. In a UM/UIM case, the process turns inward: you must file a first-party claim with your own insurer. It’s common to feel hesitant about this. You pay your premiums faithfully, and now you have to ask your own company to cover someone else’s mistake. This is precisely what the coverage is designed for.

Your Insurance Company’s New Role

When you file a UM/UIM claim, your insurer’s position changes. They effectively stand in the shoes of the uninsured or underinsured driver. This means they will conduct their own investigation to determine two key things:

1. Fault: They will verify that their insured (you) was not the one who caused the accident.
2. Damages: They will evaluate the extent of your injuries and financial losses to determine a fair payout amount.

Why It’s Not a Simple Payout

Your insurance provider is a business, and they must manage their financial responsibilities carefully. They will require complete documentation and evidence to support your claim. The claim process can be long and filled with paperwork, and it’s easy to get frustrated as medical bills begin to pile up.

Our firm’s role is to manage this entire process for you. We compile the necessary medical records, expert opinions, and proof of lost income to build a comprehensive claim that clearly demonstrates the full value of your damages. If you are finding the process difficult, a conversation with an attorney will help clarify your rights.

What Kinds of Damages Can UM/UIM Coverage Pay For?

This coverage is designed to compensate you for the same losses that the at-fault driver’s insurance would have had, had they been properly insured. This includes both economic and non-economic damages.

Economic Damages (The Measurable Losses)

• All Medical Expenses: This covers everything from the initial emergency room visit and hospital stay to ongoing needs like physical therapy, prescription medications, and future surgeries.
• Lost Income and Wages: Compensation for the time you were unable to work while recovering from your injuries.
• Diminished Earning Capacity: If your injuries are permanent and prevent you from returning to your previous career or earning potential, this compensates for that future loss of income.

Non-Economic Damages (The Personal Impact)

• Pain and Suffering: Compensation for the physical pain and mental anguish you have endured as a result of the accident.
• Loss of Enjoyment of Life: For the impact the injuries have on your ability to enjoy hobbies, activities, and daily life as you once did.
• Emotional Distress: Addresses conditions like anxiety, depression, or PTSD that could develop after a traumatic accident.

Who Else Is Covered?

UM/UIM protection is broader than many people realize. It typically extends to:

• Passengers in your vehicle at the time of the accident.
• Resident relatives (family members living in your household).
• You or your resident relatives if you are injured as a pedestrian or cyclist by an uninsured driver.

When Your Own Insurance Company Becomes Your Opponent: UM/UIM Investigation Strategies

Filing a UM/UIM claim puts you in the unusual position of seeking payment from your own insurance company, but this doesn’t mean they’ll automatically write you a check. Your insurer becomes your adversary in many ways, using the same aggressive investigation strategies they would against any other claimant to minimize what they pay you.

The Conflict of Interest That Changes Everything

When you file a UM/UIM claim, your insurance company faces a fundamental conflict that affects how they handle your case:

• Duty to defend vs. duty to deny: They must investigate your claim fairly while also protecting their financial interests by paying as little as possible
• Policy interpretation disputes: Your insurer may interpret policy language in their favor rather than yours, despite owing you a duty of good faith
• Coverage determination bias: Financial incentives to find reasons why coverage doesn’t apply or should be reduced
• Settlement authority conflicts: The same company that owes you coverage also controls how much they’re willing to pay

Adversarial Investigation Methods Your Own Insurer Uses

Your own insurance company may investigate you as aggressively as any third-party insurer:

• Physical surveillance: Hiring private investigators to watch your daily activities and document physical capabilities
• Social media scrutiny: Monitoring Facebook, Instagram, and other platforms for photos or posts that contradict injury claims
• Activity documentation: Recording you doing activities that might suggest your injuries aren’t as severe as claimed
• Timeline analysis: Comparing surveillance findings to medical treatment records and disability claims

Your insurer will likely require you to see doctors of their choosing, known as Independent Medical Examinations (IMEs):

• Examiner selection bias: Using doctors known for minimizing injuries and questioning treatment necessity
• Limited examination scope: IME doctors may spend minimal time examining you while writing extensive reports disputing your treatment
• Medical record review focus: Concentrating on pre-existing conditions and alternative causation theories
• Treatment plan challenges: Questioning whether ongoing therapy and medications are truly necessary

Medical Record and Treatment Analysis

Your own insurance company has broader access to your medical information than third-party insurers and will conduct a comprehensive medical history review:

• Pre-existing condition emphasis: Searching through years of medical records to find conditions they blame for current symptoms
• Treatment gap analysis: Highlighting any delays in treatment or missed appointments to argue that your injuries aren’t severe
• Provider consultation: Contacting your doctors directly to question treatment decisions and prognosis
• Prescription monitoring: Analyzing medication usage patterns to dispute pain levels and functional limitations

Your insurer actively looks for alternative explanations for your injuries:

• Workplace injury analysis: Investigating whether current symptoms might relate to work activities rather than the accident
• Recreational activity review: Examining hobbies, sports, and other activities that might explain your injuries
• Family medical history: Looking for hereditary conditions that might account for your current health problems
• Lifestyle factor analysis: Reviewing diet, exercise, and health habits that might affect recovery

Protecting Yourself Against Your Own Insurance Company

Protecting your interests requires careful attention to how you interact with your own insurer:

• Written communication preference: Requesting that all important communications be in writing rather than phone calls
• Medical treatment consistency: Following all treatment recommendations to prevent coverage disputes
• Activity limitation awareness: Understanding that your insurer may be watching your activities and social media
• Expert witness preparation: Being ready for IMEs and other evaluations your insurer requires

Having an attorney levels the playing field with your own insurance company and gives you the advantage in preparing your case:

• Investigation balance: Your attorney conducts an independent investigation while your insurer focuses on claim reduction
• Medical evidence presentation: Professional presentation of medical evidence that counters insurer challenges
• Settlement negotiation expertise: Experience with UM/UIM settlement values and arbitration procedures
• Bad faith protection: Monitoring for insurance company bad faith and holding them accountable for fair claim handling

A Key Pennsylvania Advantage: Understanding “Stacked” Insurance

What is “Stacking”?

Stacking is a legal option in Pennsylvania that allows you to combine the UM/UIM coverage limits from multiple vehicles or policies to create a larger pool of available funds. Think of it as pooling your resources. If you have two cars on your policy, each with $100,000 of UIM coverage, stacking allows you to combine them for a total of $200,000 in coverage for a single accident.

How Stacking Works in Pennsylvania

By default, Pennsylvania law allows for stacking. You must have actively signed a waiver form to reject this option. Many people sign this waiver to save a small amount on their premium without fully understanding what they are giving up. Rejecting stacking could leave you with far less coverage than you need if you are seriously injured.

In cases of serious injury, the ability to stack coverage can be the single most important factor in ensuring you are fully compensated. It means the difference between covering all your medical bills and being left with a lifetime of debt. We will help review your insurance policy to determine if you have stacking and explain what it means for your claim.

Questions We Often Hear About Uninsured & Underinsured Motorist Claims

What if I was a pedestrian or bicyclist hit by an uninsured driver in Pennsylvania?

If you have your own auto insurance policy, your UM/UIM coverage is typically used to cover your injuries, even though you were not in your car. If you do not have car insurance but live with a relative who does, you may be covered under their policy. The rules can be complex, and an attorney could help determine all available sources of coverage.

Does my UM/UIM coverage pay to repair my car?

Generally, standard UM/UIM coverage is for bodily injury. However, some policies include a separate coverage called Uninsured Motorist Property Damage (UMPD), which would cover vehicle repairs. It is important to check your specific policy declarations page to see what coverages you have purchased.

How long do I have to file a UM/UIM claim in Pennsylvania?

The time limit, known as the statute of limitations, for filing a lawsuit related to a car accident is typically two years in Pennsylvania. However, your insurance policy may contain its own deadlines for reporting the accident and filing a claim, which is usually much shorter. It is important to act promptly to protect your rights.

Will my insurance rates go up if I use my UM/UIM coverage?

In Pennsylvania, insurers are generally prohibited from raising your rates or dropping your coverage for filing a claim for an accident that was not your fault. Filing a UM/UIM claim falls into this category, as the accident was caused by the other, uninsured or underinsured driver.

What if I was partially at fault for the accident?

Pennsylvania follows a “modified comparative negligence” rule. This means you are still able to recover damages as long as you were not more than 50% at fault. Your final compensation award would be reduced by your percentage of fault. For example, if you were found to be 10% at fault for the collision, your final award from your UM/UIM policy would be reduced by 10%.

Your Policy is Your Protection. Let Us Help You Use It.

You purchased insurance and paid your premiums to protect yourself and your family from a situation just like this. Now is the time to make sure that protection works for you. We handle these types of claims regularly and understand how to present your case effectively to your insurance carrier. 

If you were hurt in an accident and are worried about how your bills will be paid, contact Leonard Hill – Personal Injury Lawyers And Car Accident Lawyers. We will handle the complexities of the claim so you can focus on your health.

Call us today at (215) 567-7600 for a straightforward conversation about your case.