Underinsured Motorist Claims in Kentucky

UIM vs. UM: Two Different Problems, Two Different Coverages

These two coverages are often confused, but they address distinct situations. Understanding which applies to your crash is the first step in recovering full compensation.

What Triggers a UIM Claim in Kentucky?

A UIM claim is triggered when three conditions exist simultaneously:

1. You suffered damages (medical bills, lost wages, pain and suffering) that exceed the at-fault driver’s liability limits.
2. You (or a household member) have a UIM policy on your own vehicle(s).
3. The at-fault driver’s liability insurer has paid , or tendered , the full amount of their policy limits.

The third condition is critical. In Kentucky, you typically cannot access your own UIM coverage until the at-fault driver’s insurer has tendered its full limits. This is not always required before making a demand on your UIM insurer, but it is the standard trigger. An attorney can handle the timing and sequencing to ensure you don’t lose UIM rights by settling the liability claim improperly.

How Kentucky UIM Coverage Works (KRS 304.39-320)

Under KRS 304.39-320, Kentucky insurers must make UIM coverage available to policyholders who request it. Key points about this statute:

• UIM is not mandatory , you must have specifically requested and purchased it when you bought your policy.
• The UIM insurer’s obligation is to pay damages in excess of the at-fault driver’s limits, up to your UIM limit.
• The UIM insurer is entitled to a credit for amounts paid by the at-fault driver’s liability insurer.
• Your UIM insurer must consent before you settle with the at-fault driver’s insurer , failure to get consent can void your UIM rights.
• UIM coverage must be equal to or exceed your UM coverage limits (you cannot buy less UIM than UM).

Stacking Rules for UIM in Kentucky

Kentucky allows “stacking” of UIM coverage in specific circumstances, governed by the strong expectations doctrine established in Marcum v. Rice and Adkins v. Kentucky National Insurance Co. The rule: if you paid separate premiums for UIM coverage on each vehicle, you may be able to stack those limits for a single crash.

In practice: if you have $50,000 UIM on three vehicles and paid separate premiums for each, you may be able to stack for $150,000 total UIM coverage from a single crash. However, most insurers now use single-premium structures specifically designed to eliminate stacking. Reviewing your declarations page and billing records with an attorney is the only way to know for certain whether stacking is available in your case.

Common UIM Scenarios in Kentucky Car Crashes

• Rear-End Crash by Minimum-Coverage Driver

  You’re rear-ended on I-64 by a driver carrying only $25,000 in liability. Your injuries , herniated disc, surgery, 8 weeks of work missed , total $85,000 in damages. The at-fault driver’s insurer pays their $25,000 limit. Your UIM kicks in to cover the remaining $60,000 gap, up to your UIM limit.

• Drunk Driver Crash With Low Limits

  A drunk driver T-bones your vehicle. Their policy limit is $25,000 per person. Your medical bills alone reach $40,000. After the at-fault insurer pays $25,000, your UIM coverage covers the $15,000+ gap. If you also have a claim for pain and suffering, your UIM can cover non-economic damages beyond the liability limit as well.

• Multi-Vehicle Crash With Multiple Victims

  An at-fault driver with $50,000 per-accident limits causes a crash injuring you and two other people. The per-accident limit is split among three victims, meaning you may receive far less than your $25,000 per-person entitlement. Your UIM covers the gap between what you actually received and your full damages.

• Commercial Vehicle UIM

  You’re hit by a delivery driver who carries commercial insurance, but their policy has exclusions that reduce the effective payout below your damages. Your personal auto UIM coverage can step in even against a commercial vehicle, depending on how the policy defines “underinsured motor vehicle.”

How to Preserve and Pursue Your UIM Claim

• Never settle with the at-fault driver’s insurer without first notifying your own UIM carrier and getting their consent. Settling without consent can permanently eliminate your UIM rights.
• Review your declarations page now , if UIM doesn’t appear as a separate coverage line, you may not have it, or you may have it at minimum limits.
• Keep copies of all medical records, bills, wage loss documentation, and correspondence with the at-fault driver’s insurer.
• Contact Sam Aguiar Injury Lawyers before accepting any settlement from the at-fault driver’s insurer. The sequencing of UIM and liability claims requires careful management to preserve maximum recovery.