UM and UIM Coverage Explained
If you’ve been in a car accident in Kentucky, you’ve likely heard about uninsured motorist (UM) or underinsured motorist (UIM) coverage.
These types of coverages come into play when you’re involved in a crash with a driver who either has no insurance or does not carry enough coverage to pay for all your damages.
While Kentucky law requires drivers to carry minimum auto insurance liability coverage, many drivers still operate without sufficient or any coverage.
This article explains how UM and UIM work, what steps you should take after an accident, and why protecting yourself with these coverages is essential.
For an overview of Kentucky’s auto insurance requirements, visit the Kentucky Department of Insurance’s consumer page.
1. Kentucky Auto Insurance Basics
Minimum Liability Coverage
Under Kentucky law, drivers are required to carry a minimum level of auto liability insurance.
The standard requirements include:
Bodily Injury Liability
$25,000 per person and $50,000 per accident
Property Damage Liability
$10,000 per accident
Personal Injury Protection (PIP)
$10,000 to cover initial medical costs and lost wages regardless of fault
2. Uninsured Motorist (UM) Coverage
What Is UM Coverage?
Uninsured motorist coverage is designed to protect you if you’re injured in an accident where the at-fault driver has no insurance. This coverage helps pay for:
Medical bills
Lost wages
Pain and suffering
Other related damages
Why UM Coverage Is Crucial
Although insurance is mandatory, many drivers let their policies lapse or drive without coverage intentionally. Without UM protection, you could be left with hefty out-of-pocket expenses if an uninsured driver hits you.
UM Coverage and Hit-and-Run Accidents
UM coverage also kicks in after hit-and-run accidents. In Kentucky, if the at-fault driver flees the scene, leaving you without recourse, your own policy’s UM provision may cover your losses.
3. Underinsured Motorist (UIM) Coverage
Defining UIM Coverage
Underinsured motorist coverage is your financial safety net when the at-fault driver does have insurance, but not enough to cover your damages fully.
For instance, if your total damages exceed the at-fault driver’s liability limits, UIM coverage helps make up the shortfall.
Is UIM Coverage Required in Kentucky?
Kentucky law requires insurers to offer underinsured motorist (UIM) coverage, but purchasing it is optional.
Since many drivers opt only for the state minimum liability, the risk of encountering underinsured drivers is significant.
Law on UIM Coverage
Under Kentucky statutes, the specifics of Uninsured/Underinsured Motorist (UIM) coverage are clearly defined. For example, the law requires that if the at-fault driver’s liability falls short, your own UIM coverage will cover the difference, subject to policy limits. See KRS 304.39-320 on underinsured motorist coverage.
Why Consider Adding or Increasing UIM Coverage
Catastrophic Injuries
Severe injuries can result in expenses exceeding minimal liability limits.
Property Damage
In high-impact accidents, repair bills or replacement costs can quickly outpace the at-fault driver’s insurance.
Legal and Financial Risk
Suing an underinsured driver often yields little compensation if they lack sufficient assets.
UIM coverage ensures you aren’t left to shoulder these costs alone.
4. Hit-and-Run Accidents and UM Claims
Hit-and-run accidents add another layer of complexity. When a driver flees the scene, you might have difficulty recovering compensation from the at-fault party. In such cases, your uninsured motorist coverage is designed to fill the gap.
Report the Accident Immediately:
Call the police and document the incident. A police report is crucial to substantiate your claim.
Gather Evidence:
Photograph the accident scene, note any witness contact information, and record details about the fleeing vehicle.
Notify Your Insurance Company:
Inform them promptly to ensure you meet any notification deadlines.
Consult an Attorney:
Navigating hit-and-run UM claims can be challenging. An attorney can help you understand your rights and secure the compensation you deserve.
For further insight into hit-and-run trends and their impact on victims, review research findings from the AAA Foundation
5. Steps to Take After an Accident With an Uninsured or Underinsured Driver
Ensure Safety and Seek Medical Attention
Prioritize the safety of everyone involved. Call 911 if anyone needs immediate care—injuries may not be immediately apparent even if you feel fine.
Contact Law Enforcement
Filing an official report is critical. This document will support your UM or UIM claim with your insurance company.
Gather Information at the Scene
If you’re safe to do so, record vehicle details, take photographs of damage, and obtain contact information from any witnesses. This evidence is vital for your claim.
Notify Your Insurance Company
Promptly inform your insurer about the accident and the circumstances involving an uninsured or underinsured driver. Detailed documentation helps preserve your rights.
Consult an Experienced Attorney
Dealing with UM/UIM claims can be intricate. An attorney can help:
Review your policy details
Ensure you meet all claim requirements
Negotiate with the insurance company on your behalf
Advise on whether to accept a settlement or pursue further legal action
6. Common Myths and FAQs
Myth #1:
“I Don’t Need UM/UIM Coverage If I Have Good Health Insurance.”
Even if your health insurance covers medical costs, it won’t address lost wages, pain and suffering, or non-medical expenses. UM/UIM coverage helps cover these gaps.
Myth #2:
“Filing a UM/UIM Claim Will Cause My Premiums to Skyrocket.”
Because you aren’t at fault when struck by an uninsured driver, UM or UIM claims are generally handled differently than at-fault claims. Still, review your policy details with your agent for clarity.
FAQ:
Does UM/UIM Coverage Pay for Vehicle Repairs?
While UM/UIM coverage primarily addresses bodily injuries, some insurers offer uninsured motorist property damage (UMPD) coverage. Check your policy or consult your insurance agent to see what is included.
FAQ: How Much Coverage Should I Carry?
It depends on your personal risk and financial situation. Many experts recommend coverage well beyond the state minimum due to the unpredictability of accidents and the prevalence of drivers with minimal insurance.
7. The Legal Process
Navigating UM and UIM claims requires strict adherence to deadlines and complex negotiations with insurers.
Insurance companies work hard to minimize payouts, so having an experienced attorney can ensure you:
Receive a thorough evaluation of your damages
Meet all legal deadlines
Negotiate fairly with the insurance company
File a lawsuit if a fair settlement cannot be reached
Even though many personal injury attorneys work on a contingency basis, you typically owe nothing unless you recover compensation.
8. Protecting Yourself and Your Loved Ones
UM and UIM coverage offer peace of mind.
Although adding this coverage may slightly increase your premiums, the additional cost is minimal compared to the potential financial burden that could result from a serious accident.
For drivers in Louisville, Lexington, and throughout Kentucky, reviewing their policy and considering an increase in their UM/UIM limits is wise. Knowing they’re protected can make all the difference in recovering from the financial and emotional toll of an accident.
Conclusion
Uninsured and underinsured motorist coverage is a vital layer of protection.
From everyday accidents to complex hit-and-run cases, UM and UIM coverage help ensure you’re not overwhelmed with expenses.
If you’re involved in an accident with an uninsured, underinsured, or hit-and-run driver, remember these key steps:
Stay safe and seek immediate medical attention.
File a police report and document the scene.
Notify your insurer promptly and consult an attorney before settling.
By understanding how UM and UIM coverage work in Kentucky and ensuring you have sufficient coverage, you can protect yourself, your family, and your financial future.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice tailored to your situation, please consult a licensed attorney such as the ones at Sam Aguiar Injury Lawyers.
