A car accident claim can become more complicated when the driver who caused the crash has insurance, but not enough coverage for the harm you suffered. You may be left wondering who will cover your remaining medical expenses, lost income, and other accident-related losses.
In Utah, the at-fault driver’s policy limit does not necessarily determine the full value of your injury claim. Depending on your insurance policy and the circumstances of the crash, underinsured motorist (UIM) coverage may provide another source of compensation. There may also be other insurance policies or responsible parties to consider.
Knowing where to look for additional coverage can make an important difference when the at-fault driver’s insurance falls short.
This guide explains how underinsured motorist claims work in Utah, what may happen after the other driver’s available coverage is exhausted, and what options you may have before accepting a settlement.
What Does It Mean When an At-Fault Driver Is Underinsured?
An at-fault driver is underinsured when they have liability insurance, but their available coverage is not enough to fully compensate you for the harm caused by the accident. In other words, insurance exists, but it may fall short of covering the full extent of your losses.
This is different from an uninsured driver. An uninsured driver generally has no applicable liability insurance, while an underinsured driver has coverage that may not be sufficient for the claim.
It is also important to separate the value of your injury claim from the amount of insurance available. A policy limit controls how much a particular insurance policy may provide. It does not automatically determine what your injuries and losses are worth.
This can become especially important after a serious accident. Ongoing medical treatment, time away from work, future care, and other accident-related losses can add up. When the at-fault driver’s coverage cannot fully address those losses, other potential sources of coverage may need to be considered.
Why the At-Fault Driver’s Insurance May Not Cover All Your Losses
Auto liability insurance policies have coverage limits. These limits place a cap on what an insurer may pay under a particular policy, even when the losses caused by an accident are greater.
This means a driver can meet Utah’s insurance requirements and still have too little coverage for a particular crash. The problem may become more significant when someone suffers serious injuries that require extensive treatment or keep them from working for an extended period.
The available coverage can also become more complicated when several people are injured in the same accident. More than one injured person may be seeking compensation through the at-fault driver’s liability policy, making it important to understand how the available insurance applies to each claim.
How Underinsured Motorist Coverage Works in Utah
Underinsured motorist coverage, commonly called UIM coverage, is designed for situations where the person responsible for an accident has liability insurance, but that insurance is not enough to fully compensate an injured person for covered damages. Utah law specifically addresses this type of coverage as part of auto insurance.
UIM coverage may provide an additional source of compensation after the at-fault driver’s available liability coverage is taken into account. Unlike the liability coverage carried by the person who caused the crash, UIM benefits come through an applicable insurance policy available to the injured person.
However, having auto insurance does not mean you should automatically assume a particular amount of UIM coverage is available. The insurance policy, declarations page, coverage selections, and other relevant documents may need to be reviewed to determine what coverage applies to the accident and who qualifies for it.
UIM coverage is also different from uninsured motorist coverage. Uninsured motorist coverage generally addresses accidents involving drivers without applicable liability insurance. UIM coverage addresses a different problem: the responsible driver has insurance, but the available liability coverage may not be enough. Understanding that difference can help you determine which type of coverage may apply after a Utah accident.
What Happens When the At-Fault Driver’s Insurance Reaches Its Limit?
When the at-fault driver’s insurance reaches its policy limit, the next step is to determine whether other sources of coverage may apply. This process involves looking beyond the liability policy and understanding the full impact of the accident.
Confirm the Available Liability Coverage
First, determine which liability policies apply to the crash and what coverage is actually available. This provides a clearer picture of what the at-fault driver’s insurance may cover.
Understand the Full Extent of Your Damages
Next, consider the full extent of your injuries and losses. The value of an injury claim is separate from an insurance policy’s limit. Medical treatment, lost income, future care, and the impact of the injuries on daily life may all be relevant.
Review Your UIM Coverage
If the available liability coverage falls short, review any applicable UIM coverage. Your policy documents can help determine whether UIM benefits are available and how the coverage applies.
Present the Remaining Claim
A UIM claim may seek compensation for covered damages that were not fully addressed by the at-fault driver’s insurance. Supporting evidence can include medical records, employment information, and other documentation of your losses.
Resolve Any Coverage or Claim Disputes
A UIM insurer may disagree about coverage or the value of the claim. Depending on the policy and circumstances, the dispute may be addressed through negotiation, arbitration, or litigation.
Will Your Insurance Company Automatically Pay What the Other Driver’s Policy Doesn’t Cover?
No. Having UIM coverage does not mean your insurance company will automatically pay every remaining loss after the at-fault driver’s coverage is exhausted. Your insurer may still investigate and evaluate the UIM claim.
For example, it may consider:
- who was responsible for the accident;
- whether the policy applies to the claim;
- whether you qualify for coverage;
- the nature and extent of your injuries;
- whether your medical treatment is related to the accident; and
- lost income and other claimed damages.
For this reason, documentation remains important even though you are dealing with your own insurance company. Medical records, bills, employment records, accident evidence, and other supporting information can help establish how the crash affected you.
A disagreement can also arise over the extent of the injuries or the value of the claimed damages. UIM coverage provides a potential source of recovery, but the claim still needs to be supported and evaluated under the applicable policy and Utah law.
What If UIM Coverage Still Isn’t Enough?
Even when UIM coverage applies, it may not fully address all the losses caused by a serious accident. Whether another source of recovery exists depends on the circumstances of the crash, the available insurance, and who may be legally responsible.
Other Applicable Insurance
Another insurance policy may sometimes provide coverage. This can depend on factors such as the vehicle involved, the people covered by the policy, and other applicable insurance. Each policy should be reviewed individually rather than assuming additional coverage is available.
Other Responsible Parties
Some accidents involve more than one responsible party. Depending on how the crash happened, another driver, a business, or another party may share legal responsibility. Evidence from the accident can help determine whether additional parties should be considered.
The At-Fault Driver
An insurance policy limit does not necessarily eliminate the at-fault driver’s underlying liability for the harm they caused. However, establishing that someone owes additional compensation and actually collecting it are different matters. The driver’s financial circumstances and other factors may affect whether pursuing compensation beyond available insurance is practical.
What Should You Consider Before Accepting a Policy-Limit Settlement?
An offer of the at-fault driver’s available policy limits may seem like the end of the insurance claim, but it should not automatically be treated as the end of every potential source of recovery.
Before accepting a settlement, identify other insurance that may apply to the accident. This includes reviewing potential UIM coverage and understanding any requirements in the applicable policy.
It is also important to read a proposed release carefully. A release can affect legal rights, so you should understand which claims and parties it covers before signing it.
Keep copies of relevant insurance policies, correspondence, medical records, accident evidence, and settlement documents. These records may become important if another claim needs to be pursued.
Utah law and individual insurance policies can also include notice requirements, procedures, and deadlines. Reviewing these issues before finalizing a settlement can help avoid decisions that could affect another potential claim.
Getting Help After an Accident With an Underinsured Driver
Finding out that the at-fault driver does not have enough insurance can create uncertainty, especially when you are still dealing with injuries, medical treatment, and time away from work. However, the limits of one insurance policy do not necessarily tell you whether other sources of recovery may be available.
A careful review of the accident and the applicable insurance policies can help identify the next steps. This may include examining UIM coverage, determining whether other policies apply, and considering whether another person or entity shares responsibility for the crash.
Salt Lake Injury Law helps injured people understand their options after accidents involving underinsured drivers in Utah. The firm can review the circumstances of the crash, available insurance coverage, and potential sources of compensation. Before accepting a settlement or signing a release, understanding what coverage may still be available can help you make a more informed decision about your injury claim.
Common Questions About Underinsured Drivers in Utah
Is an underinsured driver the same as an uninsured driver?
No. An underinsured driver has liability insurance that may be insufficient, while an uninsured driver generally has no applicable liability coverage.
Can I Make a UIM Claim Through My Own Insurance?
Potentially. It depends on the applicable coverage, policy terms, and circumstances of the accident.
Does UIM Automatically Pay the Rest of My Claim?
No. The insurer may evaluate coverage, liability, injuries, and damages before determining what benefits are payable.