Kentucky UM and UIM Coverage Explained
Uninsured and underinsured motorist coverage is your protection when the at-fault driver’s policy isn’t enough — and in Kentucky, far too many drivers don’t have enough insurance.
Kentucky requires insurers to offer uninsured motorist (UM) coverage with every auto policy. Under KRS 304.20-020, UM coverage must be offered at limits equal to your liability coverage unless you reject it in writing. Underinsured motorist (UIM) coverage, which kicks in when the at-fault driver’s policy isn’t enough to cover your losses, must be specifically requested. Understanding how each works — and what limits you carry — can mean the difference between full recovery and being left short after a serious crash.
The Uninsured Driver Problem in Kentucky
(IRC / IIHS)
(KRS 304.39-110)
(KRS 304.39-020)
According to data from the Insurance Institute for Highway Safety (IIHS), approximately 14% of US drivers are uninsured at any given time. Kentucky’s minimum liability limits — $25,000 per person / $50,000 per accident / $25,000 property damage under KRS 304.39-110 — are often insufficient to cover a serious injury. A single hospitalization can exceed $50,000. UM and UIM coverage exists to fill these gaps.
Uninsured Motorist (UM) Coverage — How It Works
UM coverage pays for your bodily injuries when you are hit by a driver who has no liability insurance at all, or in most hit-and-run situations. It is coverage you carry on your own policy, and it pays regardless of which insurer is involved because you are making a claim against your own policy.
What UM Covers
- Medical expenses — all treatment related to your injuries
- Lost wages during recovery
- Pain and suffering
- Permanent disability or disfigurement
- Wrongful death if the crash is fatal
Hit-and-Run Crashes and UM Coverage
In Kentucky, UM coverage typically applies to hit-and-run crashes, but most policies require physical contact between the hit-and-run vehicle and your vehicle (or your body). A crash caused by a vehicle that forced you off the road without making contact may not be covered unless your policy has specific phantom vehicle coverage. Always review your policy language carefully — and call us if you’re unsure what applies to your situation.
Kentucky Law: Your Insurer Cannot Raise Your Rates for a UM Claim
Under KRS 304.20-040, your insurer is prohibited from increasing your premium because you filed a UM or UIM claim for a crash that was not your fault. Many policyholders don’t file UM claims because they fear their rates will go up. Under Kentucky law, that fear is unfounded. Use the coverage you’ve been paying for.
Underinsured Motorist (UIM) Coverage — Filling the Gap
UIM coverage applies when the at-fault driver has liability insurance, but their policy limits aren’t enough to cover your full losses. It is the most commonly needed and most misunderstood coverage in serious crash cases.
Here’s how it works in practice:
- At-fault driver carries $25,000 per person in liability coverage — the Kentucky minimum
- Your medical bills alone total $80,000, with additional lost wages and pain and suffering
- The at-fault driver’s insurer pays their $25,000 limit
- Your UIM coverage then applies to cover the remaining gap, up to your UIM policy limits
If you carry $100,000 in UIM coverage and collect $25,000 from the at-fault driver, you can claim up to an additional $75,000 from your own UIM policy. The math is straightforward — but the claims process requires careful handling to ensure you don’t inadvertently waive your UIM rights. See our detailed page on UM/UIM stacking in Kentucky for how multiple vehicles can multiply your available coverage.
Stacking: How It Multiplies Your Coverage
Kentucky law permits stacking of UM and UIM coverage across multiple insured vehicles unless your policy specifically excludes it. If you have two vehicles insured under the same policy, each with $100,000 in UIM coverage, you may be able to stack those limits and access up to $200,000 in UIM coverage for a single crash.
This is one of the most underutilized protections available to Kentucky crash victims — and one insurers almost never explain proactively. If you have multiple vehicles or multiple policies in your household, stacking could significantly increase what you recover after a serious crash.
What UM/UIM Does NOT Cover
UM and UIM coverage is for bodily injury. It does not typically cover property damage (your vehicle repair or replacement). For property damage from an uninsured driver, you would need collision coverage. Additionally:
- UM/UIM does not cover medical payments separately if you have Med Pay coverage — Med Pay typically applies first
- UM/UIM claims against your own insurer must still be proven — your insurer can dispute liability and damages just as the at-fault driver’s insurer would
- You cannot collect more from UM/UIM than your policy limits, even if your total losses exceed them
How to Protect Your UM/UIM Claim
UM and UIM claims against your own insurer carry a different dynamic than claims against a third party. Even though it’s your own insurance company, they have a financial interest in paying you as little as possible. Steps to protect your claim:
- Do not accept the at-fault driver’s policy limits without notifying your UM/UIM insurer first — doing so can waive your UIM rights
- Give prompt notice to your own insurer that you were in a crash involving an uninsured or underinsured driver
- Document all injuries, treatment, and losses from day one
- Do not accept a settlement offer from your own insurer without understanding your full coverage picture
UM/UIM disputes with your own insurer can be just as complex — and just as contentious — as claims against an at-fault driver. Our team at Sam Aguiar Injury Lawyers handles both types of claims regularly. We know how insurers evaluate these cases and what it takes to recover the full value of your coverage.
Frequently Asked Questions
Is UM coverage required in Kentucky?
Insurers are required to offer UM coverage under KRS 304.20-020, but you are not required to purchase it. Your insurer must offer UM limits equal to your liability coverage limits, and you must reject it in writing if you don’t want it. Most standard auto policies in Kentucky include UM coverage by default at liability-level limits. UIM coverage is separate and must be specifically requested and purchased — it is not included automatically.
How does UIM coverage work when the other driver has some insurance?
UIM coverage is triggered when the at-fault driver has liability insurance, but their limits are not enough to cover your total losses. After the at-fault driver’s insurer pays its limit, your UIM coverage covers the remaining gap up to your UIM policy limit. For example, if the at-fault driver has $25,000 in liability coverage and your losses total $100,000, your UIM coverage (if you carry $100,000) can cover the remaining $75,000 after the other driver’s policy pays out.
Can I stack UM/UIM coverage from multiple vehicles in Kentucky?
Kentucky permits stacking unless your policy explicitly prohibits it. Stacking allows you to combine UM or UIM limits from multiple vehicles insured under the same or different policies to increase the total coverage available for a single crash. For example, two vehicles each with $100,000 UIM coverage may provide up to $200,000 in stacked UIM coverage. Review your policy for anti-stacking language and consult with an attorney to understand what you actually have available.
What if my own insurance company denies or undervalues my UM/UIM claim?
Your own insurer has the same financial interest in minimizing payment as any other insurer. If your UM/UIM claim is denied or undervalued, you have the right to dispute it — including pursuing bad faith claims in some circumstances if your insurer acts unreasonably. This is one of the most important reasons to have legal representation for any UM or UIM claim involving serious injuries. Your attorney can challenge the insurer’s valuation, demand full documentation, and pursue litigation if the insurer refuses to pay what your policy provides.
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