Driving safely is a priority for most of us. You follow the speed limit, stop at red lights, and pay attention to the road. But you can’t control the actions of other drivers. A collision can happen when you least expect it, and the situation becomes even more complicated if the at-fault driver doesn’t have insurance.
If you’ve been in a car accident with an uninsured driver, you may wonder how you’ll cover your medical bills and lost wages. Fortunately, a specific type of auto insurance, uninsured motorist coverage PA, is designed to provide a financial safety net in these exact situations. This protection, along with its counterpart, underinsured motorist coverage, can be a crucial part of your auto policy.
Key Takeaways about UM/UUIM Coverage in Pennsylvania
- Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are optional in Pennsylvania but must be offered by all auto insurance providers.
- UM coverage protects an individual if they are injured by a driver with no auto insurance or by a hit-and-run driver.
- UIM coverage applies when an at-fault driver has insurance, but their policy limits are too low to cover the full extent of the injured person’s damages.
- Pennsylvania law allows policyholders to "stack" UM/UIM benefits, which combines coverage limits from multiple vehicles to increase the total amount of available protection.
- A UM/UIM claim is filed with one's own insurance company, not the at-fault driver's (which may be non-existent or insufficient).
What is Uninsured Motorist Coverage PA and Why Is It Important?
Uninsured Motorist (UM) coverage is a portion of your own auto insurance policy that steps in to cover your injuries and related losses if you are hit by a driver who has no liability insurance. It also typically applies in hit-and-run situations where the at-fault driver cannot be identified. Think of it as a shield you carry for yourself, protecting you from the financial consequences of another person’s failure to carry insurance.
The need for this coverage is more common than many people realize. According to a recent report from the Insurance Research Council, an estimated 15.4% of motorists nationwide are uninsured. That’s roughly one out of every seven drivers on the road. While you might be a responsible driver heading down the Roosevelt Expressway, the person in the next lane might not have any coverage at all.
If an uninsured driver injures you, you can’t file a claim with their insurance company because one doesn’t exist. While you could technically sue the driver personally, an individual who doesn’t pay for car insurance often lacks the personal assets to cover a significant judgment. This is where your own UM coverage becomes essential. It allows you to seek compensation from your own insurer for the damages the at-fault driver should have paid.
Demystifying Underinsured Motorist Pennsylvania Coverage (UIM)
Slightly different but equally important is Underinsured Motorist (UIM) coverage. This protection applies when the at-fault driver does have insurance, but their policy’s liability limits are too low to cover the full cost of your injuries. This is a very common scenario, as many drivers only purchase the minimum amount of coverage required by law.
In Pennsylvania, the minimum liability coverage drivers must carry is:
- $15,000 for bodily injury to one person in an accident.
- $30,000 total for bodily injury per accident (if multiple people are hurt).
- $5,000 for property damage.
These minimums, which have not been updated in decades, are quickly exhausted in a serious accident. Imagine you are seriously injured in a crash near Penn's Landing, and your medical bills alone exceed $80,000.
If the at-fault driver only has the minimum $15,000 policy, their insurance will pay that amount, leaving you with a $65,000 shortfall—not even counting lost wages or pain and suffering. If you have UIM coverage, you can then file a claim with your own insurance company to help cover that remaining gap, up to the limits of your UIM policy.
Having robust underinsured motorist coverage in Pennsylvania provides peace of mind that a serious injury won't lead to financial ruin just because the responsible driver chose a bare-bones insurance plan.
Pennsylvania Auto Insurance Laws: Is UM/UIM Coverage Required?
In Pennsylvania, UM and UIM coverages are not mandatory. You are not legally required to purchase them. However, state law does mandate that insurance companies must offer them to you.
Under Pennsylvania’s Motor Vehicle Financial Responsibility Law (MVFRL), your insurer is required to offer you both UM and UIM coverage in an amount equal to the bodily injury liability limits you choose for your policy. You have the right to decline this coverage, but you must do so in writing by signing a specific waiver form.
Before rejecting this coverage to save a few dollars on your premium, it is vital to understand what you would be giving up. UM/UIM coverage is designed to pay for the same types of damages that an at-fault driver’s liability insurance would cover, including:
- Current and future medical expenses
- Lost income and diminished earning capacity
- Pain and suffering
- Rehabilitation and therapy costs
These benefits provide a critical resource for your recovery, ensuring that you have a path forward to pay for the care you need and compensate for your losses.
Stacking UM/UIM Coverage PA Explained
Pennsylvania law also allows for a feature called "stacking," which can significantly increase your available coverage. When you choose to stack your UM/UIM coverage, you can combine the coverage limits for each vehicle insured under your policy.
For example, let's say you have two cars, and you've selected $100,000 in UM coverage for each.
- Without Stacking: If you are injured in an accident, your coverage limit is $100,000.
- With Stacking: You can combine the limits, giving you a total of $200,000 in available UM coverage.
Stacking provides a much higher level of protection, especially for families with multiple vehicles. Like the base UM/UIM coverage, you can waive stacking in writing, which will lower your premium slightly. However, the added protection that stacking affords is often well worth the modest increase in cost, particularly in the event of a catastrophic injury.
Steps to Take After an Accident with an Uninsured or Underinsured Driver
After an accident, the process of dealing with the insurance side of things begins. When the at-fault driver is uninsured or underinsured, the steps you take are a bit different. Your focus will shift to your own policy.
Here is a numbered list of actions to consider:
- Locate and Review Your Policy: The first step is to confirm your coverage. Find the declarations page of your auto insurance policy. This document outlines your specific coverages and limits. Look for the sections on "Uninsured Motorist Bodily Injury" (UM) and "Underinsured Motorist Bodily Injury" (UIM) to see if you have them and for how much. Also, check to see if you elected for stacking.
- Promptly Notify Your Insurer: You must report the accident to your own insurance company as soon as you are able. Inform them that the other driver was at fault and that you believe they are either uninsured or underinsured. Your insurer will open a claim under your UM/UIM coverage PA benefits.
- Preserve All Evidence and Documentation: Your ability to recover compensation depends on your ability to prove your damages. Create a file and keep everything related to the accident. This includes the police report, the other driver's information (if you have it), photos of the scene and your injuries, and all medical records and bills.
- Track Your Expenses and Losses: Keep a detailed log of all costs you incur because of the accident. This means medical co-pays, prescription receipts, transportation costs to doctor's appointments, and detailed records of the time you missed from work.
Staying organized from the beginning will be incredibly helpful as your claim progresses, as it provides a clear picture of the financial impact the accident has had on your life.
The Process of Filing a UM/UIM Claim in Pennsylvania
Filing a UM/UIM claim means you are seeking compensation from your own insurance company. This can feel counterintuitive, as you might expect your insurer to be on your side. However, it’s important to remember that insurance companies are businesses. When you file a UM/UIM claim, your relationship with your insurer changes. They are now on the other side of the table, and their goal is to minimize the amount they have to pay out.
You will need to present evidence to your insurer that proves two key things:
- The other driver was at fault for the accident.
- The extent of your damages (medical costs, lost wages, pain and suffering, etc.).
Your insurance company will investigate the claim, much like the at-fault driver's insurer would have. They may request a recorded statement, ask you to sign medical authorizations, and have their own adjusters evaluate your case.
What Happens If Your UM/UIM Claim is Denied?
Unfortunately, valid UM/UIM claims are sometimes denied or undervalued. An insurer might argue that your injuries weren't caused by the crash, that your medical treatment was excessive, or that you were partially at fault for the accident. They might also make a low settlement offer, hoping you’ll accept it quickly out of frustration or financial pressure.
If your claim is denied, it is not the final word. You have the right to challenge the insurance company's decision. Pennsylvania law protects policyholders from insurance "bad faith," which occurs when an insurer fails to handle a claim fairly and honestly without a reasonable basis. A denial of a valid claim, unreasonable delays, or a failure to conduct a proper investigation can all be signs of bad faith. Understanding your rights in this situation is key to pursuing the full compensation you deserve.
PA Uninsured Motorist Coverage FAQs
Here are answers to some common questions people have about uninsured and underinsured motorist claims.
What’s the difference between UM/UIM coverage and Full Tort or Limited Tort?
Tort options (Full or Limited) determine your right to sue an at-fault driver for pain and suffering. UM/UIM coverage is the source of money you can access if the at-fault driver doesn't have enough (or any) insurance to pay for your damages. Your tort selection can still affect the amount of compensation you can recover through your UM/UIM claim for non-economic damages like pain and suffering.
Can I use UM/UIM coverage if I was a pedestrian or bicyclist hit by a car?
Yes, in most cases. Your UM/UIM coverage typically follows you. If you are hit by an uninsured or underinsured driver while walking, jogging, or riding a bike in Philadelphia, you should be able to file a claim under your own auto insurance policy.
Does my UM/UIM coverage apply if I was a passenger in someone else's car?
Yes. Generally, if you are injured as a passenger, you would first look to the UM/UIM coverage on the policy of the vehicle you were in. If that coverage is exhausted or unavailable, you can then typically turn to the UM/UIM coverage on your own personal auto policy.
Discuss Your Case with a Philadelphia Personal Injury Lawyer
Dealing with the effects of a serious car accident is difficult enough without the added stress of a complex insurance claim. When the at-fault driver is uninsured or underinsured, the process can become even more challenging. Your own insurance company may not make it easy to get the compensation you need to cover your medical bills, lost income, and other damages.
At Leonard Hill Personal Injury Lawyers And Car Accident Lawyers, our firm is dedicated to helping people who have been hurt due to the negligence of others. With more than 50 years of combined legal experience, we know how to handle UM/UIM claims and stand up to insurance companies. We use honest, straightforward communication to help you understand your options and provide the personalized attention your case deserves.
If you were injured in a collision, contact us today at (215) 567-7600 or through our online form for a free consultation to discuss your situation.